Kenneth D. Corwin, Ltd. v. Missouri Medical Service, 48398

• Decision Date: 08 January 1985
• Docket Number: No. 48398,48398
• Citation: 684 S.W.2d 598
• Parties: KENNETH D. CORWIN, LTD., a corporation, d/b/a Plastic and Reconstructive Surgery, Inc., Plaintiff-Respondent, v. MISSOURI MEDICAL SERVICE, a corporation, Defendant-Appellant.
• Court: Missouri Court of Appeals

Page 598

684 S.W.2d 598

KENNETH D. CORWIN, LTD., a corporation, d/b/a Plastic and Reconstructive Surgery, Inc., Plaintiff-Respondent, v. MISSOURI MEDICAL SERVICE, a corporation, Defendant-Appellant.

No. 48398.

Missouri Court of Appeals,

Eastern District,

Division One.

Jan. 8, 1985.

Henry J. Mohrman, St. Louis, for defendant-appellant.

Gerald J. Bamberger, St. Charles, for plaintiff-respondent.

PUDLOWSKI, Presiding Judge.

This is a civil action for damages for breach of contract in which the trial court entered Summary Judgment in favor of plaintiff and against defendant and denied defendant's Motion for Summary Judgment. This appeal involves the determination of the parties' rights and obligations under certain contracts relating to health services. We affirm.

Defendant, Missouri Medical Service, is a nonprofit membership corporation organized under Chapter 352 and licensed as a health service corporation under Chapter 354 of the Revised Statutes of Missouri. It operates a health service plan known as the Blue Shield Plan under which prepaid medical, surgical and related health services are furnished to subscribing members in accordance with programs chosen by such subscribers.

Kenneth D. Corwin, M.D. (hereinafter referred to as Dr. Corwin) is a licensed physician and surgeon specializing in plastic surgery, who on December 12, 1975 applied for registration as a participating physician member of defendant. He was accepted as such on or about December 29, 1975. On January 29, 1976, Dr. Corwin formed a professional corporation known as Kenneth D. Corwin, Ltd.

Larry J. Thieret (hereinafter referred to as Thieret) at all relevant times was a member of the Missouri Farm Bureau Federation which sponsored a health care program called the "Deluxe Option," consisting of three separate contracts which were (1) a contract for hospital services only issued by Blue Cross Hospital Service, Inc., of Missouri, (2) a contract for surgical services issued by defendant, and (3) a contract for Major Medical expense issued jointly by defendant and Blue Cross Hospital Service, Inc. of Missouri.

On December 19, 1977, Dr. Corwin performed a surgical operation upon Thieret for a facial deformity for which Dr. Corwin charged a fee of $3,215.00. On January 28, 1978, Dr. Corwin reported this operation and the charge to defendant. He submitted with his service report an operative report disclosing that he had performed four separate procedures, three to the eye area and one to the nose area. Defendant determined that the maximum benefit under its contract for surgical services was $503.00 and accordingly defendant paid Dr. Corwin $503.00 on June 22, 1978.

Meanwhile, Thieret applied to the Major Medical Department of Blue Cross Hospital Service, Inc. of Missouri and defendant for major medical benefits due to him under his contract for major medical expense. The Major Medical Department determined that Thieret was entitled to $2,169.60 which was paid to him on June 30, 1978. This payment was based upon the belief that Thieret had fully paid plaintiff for its services. However, Thieret had made no payment to plaintiff and on October 20, 1980, Thieret filed a voluntary petition in bankruptcy scheduling plaintiff as a creditor. Thieret's debt owed to plaintiff was duly discharged on August 7, 1981.

Plaintiff began this action on May 2, 1980 under the style of Plastic and Reconstructive Surgery, Inc. alleging that plaintiff was entitled to recover from defendant a payment of $2,169.60. On March 10 1981 plaintiff was granted leave to amend its name to Kenneth D. Corwin, Ltd., a corporation, d/b/a Plastic and Reconstructive Surgery, Inc.

Defendant relied upon the provisions of the applicable contracts and denied any obligation to make the payment demanded by plaintiff.

The trial court entered judgment for plaintiff on November 14, 1983 in the amount of $2,169.60 with interest and costs. On November 28, 1983, defendant filed a Motion for New Trial, which was denied on February 24, 1984. From the denial of that motion this appeal was taken.

Defendant's first point on appeal alleges the trial court erred in holding that plaintiff, Kenneth D. Corwin, Ltd., a corporation, d/b/a Plastic and Reconstructive Surgery, Inc. acquired any rights against defendant from Dr. Corwin because the contract between Dr. Corwin and defendant was for personal services, and as such, was not assignable without consent of both parties.

The standard of review of a summary judgment is the same as that of a case tried by the court. City of Kirkwood v. City of Sunset Hills, 589 S.W.2d 31, 34 (Mo.App.1979). The judgment of the trial court will be affirmed unless the trial court erroneously declares or applies the law. Murphy v. Carron, 536 S.W.2d 30 (Mo. banc 1976).

It is well recognized that in a contract for personal services, which involves special knowledge, skill or a relation of personal confidence, the...