Humana of Alabama, Inc. v. Rice

Citation380 So.2d 862
PartiesHUMANA OF ALABAMA, INC., d/b/a North Alabama Hospital v. Elvin P. RICE. Civ. 1805.
Decision Date24 October 1979
CourtAlabama Court of Civil Appeals

Robert E. Cooper, of Fine, McDowell & Cooper, Russellville, for appellant.

Robert I. Rogers, Jr. of Bedford, Bedford & Rogers, Russellville, for appellee.

BRADLEY, Judge.

Humana of Alabama, Inc., d/b/a North Alabama Hospital, defendant below, appeals from a verdict and judgment rendered against it and in favor of Elvin P. Rice, plaintiff below, in the amount of $3,850. We reverse.

On August 8, 1977 the plaintiff, Elvin P. Rice, was admitted to the North Alabama Hospital in Russellville, Alabama, which is owned and operated by Humana of Alabama, Inc. (hereinafter referred to as "hospital"). Mr. Rice remained in the hospital four days and was discharged on August 12, 1977. His total bill was $1,195.00.

The plaintiff was covered by two group health insurance policies one was with Provident Life and Accident Insurance Company (hereinafter referred to as "Provident") and the second policy was with Blue Cross-Blue Shield. The hospital was advised by Rice's wife on the date of admission that he had coverage through Provident. Mr. Rice later advised the hospital of his coverage under Blue Cross.

The defendant-hospital filed a claim with Provident on August 7, 1977 and with Blue Cross on August 25, 1977, and on August 26, 1977 the hospital received payment from Provident in the amount of $1,164.00. On September 13, 1977 Mr. Rice paid the hospital the balance owed, which was $31.00. The defendant received payment of $483.00 on September 15, 1977 from Blue Cross. Both insurance policies contained coordination of benefits provisions.

On October 1, 1977 the hospital notified Provident and Blue Cross by letter that both companies had paid, and requested each insurance company to examine its files as to the correctness of the payment. On October 11, 1977 Blue Cross notified the hospital that a refund would be requested due to the coordination of benefits provisions. On October 24, 1977 the hospital received written notification from Blue Cross demanding a refund in the amount of $453.00. This was done pursuant to a contract existing between the hospital and Blue Cross, Article III of which states:

3. In the event the Corporation through error or mistake of the Hospital, the Corporation, or any other person or entity makes payment to the Hospital for services for which the Corporation is not responsible under this Contract and the Corporation's contract or agreement with the Member on whose behalf such payment is made, the Hospital upon the Corporation's request shall refund such payment to the Corporation or shall, at the option of the Hospital, permit any sums paid through error or mistake to be deducted from any sums payable or reimbursable to the Hospital under this Contract for Health Care Services furnished to that or any other Member.

On October 27, 1977 the hospital refunded $453.00 to Blue Cross and $30.00 to Mr. Rice. On October 25, 1977 a complaint was filed against the hospital by Mr. Rice resulting in this lawsuit. The hospital was served on October 27, 1977.

The decisive issue on appeal before this court is whether an action in conversion may be maintained for "monies."

The general rule for conversion has been stated in Scott Paper Co. v. Novay Cherry Barge Service, Inc., 48 Ala.App. 368, 265 So.2d 150 (1972):

". . . consisting in ' " * * * either * * * the appropriation of the thing to the party's own use and beneficial enjoyment, or in its destruction, or in exercising of dominion over it, in exclusion or defiance of the plaintiff's right, or in withholding the possession from the plaintiff, under a claim of title inconsistent with his own."

The plaintiff, Mr. Rice, maintains in his amended...

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12 cases
  • Waddell & Reed, Inc. v. UNITED INVEST. LIFE INS. CO.
    • United States
    • Alabama Supreme Court
    • July 3, 2003
    ...been determined as a matter of law not to be specific property which would support an action for conversion. Humana of Alabama, Inc. v. Rice, [380 So.2d 862 (Ala.Civ. App.1979].) Shares in a `Ready Assets Trust Account' which must be redeemed for cash and on which checks can be written have......
  • Bennett v. CIT Bank, N.A.
    • United States
    • U.S. District Court — Northern District of Alabama
    • August 27, 2020
    ...property which would support an action of conversion." Greene Cty. Bd. of Educ. , 586 So. 2d at 898 (citing Humana of Ala., Inc. v. Rice , 380 So. 2d 862 (Ala. Civ. App. 1979), cert. denied , 380 So. 2d 864 (Ala. 1980) ). In short, an action "for the conversion of money requires the money i......
  • Strickland v. Kafko Mfg., Inc.
    • United States
    • Alabama Supreme Court
    • May 22, 1987
    ...has been determined as a matter of law not to be specific property which would support an action of conversion. Humana of Alabama, Inc. v. Rice, [380 So.2d 862 (Ala.Civ.App.1979), cert. denied, 380 So.2d 865 (Ala.1980) ]. Shares in a 'Ready Assets Trust Account' which must be redeemed for c......
  • United Merchants & Mfrs., Inc. v. Sanders
    • United States
    • Alabama Supreme Court
    • May 29, 1987
    ...& Prac., 1020, 1021); Lewis v. Fowler, 479 So.2d 725 (Ala.1985); Moody v. Keener, 7 Port. 218 (Ala.1838); Humana of Alabama, Inc. v. Rice, 380 So.2d 862 (Ala.Civ.App.1979), cert. denied, 380 So.2d 864 (Ala.1980). However, when a relationship of debtor-creditor exists absent any obligation t......
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