Palm Springs General Hospital, Inc. of Hialeah v. State Farm Mut. Auto. Ins. Co., 67--913

• Decision Date: 28 January 1969
• Docket Number: No. 67--913,67--913
• Parties: PALM SPRINGS GENERAL HOSPITAL, INC., OF HIALEAH, a Florida corporation, Appellant, v. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY; Eutimio Leal and Georgina Leal, Appellees.
• Court: Florida District Court of Appeals

Page 793

218 So.2d 793

PALM SPRINGS GENERAL HOSPITAL, INC., OF HIALEAH, a Florida corporation, Appellant, v. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY; Eutimio Leal and Georgina Leal, Appellees.

No. 67--913.

District Court of Appeal of Florida, Third District.

Jan. 28, 1969.

Rehearing Denied Feb. 26, 1969.

Wicker, Smith, Pyszka, Blomqvist & Davant, Sinclair, Louis & Huttoe, Paul Siegel, Bertha Claire Lee and Faye L. Becker, Miami, for appellant.

Edward B. Johnson, Jr., and Jeanne Heyward, Miami, for Eutimio and Georgina Leal.

Walton, Lantaff, Schroeder, Carson & Wahl, and Richard J. Thornton, Miami,

Before BARKDULL, HENDRY and SWANN, JJ.

HENDRY, Judge.

The appellants were the plaintiffs below, and appeal from an adverse summary judgment entered against them. The portion of the complaint pertinent hereto claimed damages against the three appellees for their impairment of a hospital lien. The following facts appear uncontroverted from the record and form the basis for our holding.

An auto accident occurred on November 6, 1966, which involved the appellee Eutimio Leal and another individual, Joe Trollinger. Both were taken to the Palm Springs Hospital for medical care. Trollinger was insured by the appellee, State Farm Mutual Automobile Insurance Co. (hereinafter State Farm), and their agent was apprised of the accident within hours of its occurrence. Soon thereafter, Leal secured the services of an attorney, who began preparations to recover money for the damages which arose from the accident. This attorney notified State Farm of Leal's claim against their insured, Trollinger, by a letter dated November 17, 1966. The insurance policy had a $10,000 liability coverage. On about November 26, 1966, the hospital comptroller communicated by phone with Leal's attorney, requesting a 'letter of guarantee' in order to ascertain the financial position of Leal with regard to the mounting costs of his hospitalization. The comptroller was assured by the attorney that '* * * there was nothing to worry about. Mr. Trollinger had public liability with an insurance company and (the hospital) bill would be paid in full and (the attorney) had a strong case.' ¹

Meanwhile, Leal's attorney and State Farm continued their negotiations, and at the request of the insurance company Claims, Division, the attorney sent them hospital bills amounting to $4,661.65, (dated up to December 8, 1966) plus a copy of the doctor's report.

After a conference held on December 21, 1966, Leal's attorney and several State Farm agents, including the Division Claims Superintendent, came to a tentative agreement to settle Leal's claim for $9,000.00. ² Immediately thereafter, the attorney and a State Farm agent both drove to the hospital in order to have Leal execute the release papers. This was done, and a $9,000.00 draft was issued from State Farm payable to Leal and his attorney. The record in no way reflects that at this time the hospital had any knowledge or notice that a settlement had been completed.

By January 11, 1967, Leal's hospital costs had increased to over $7,000.00. The comptroller phoned Leal's attorney to inquire as to Leal's ability to pay the bill. It was at this time, or very shortly thereafter, that the hospital learned of the settlement.

Leal was transferred to another hospital on January 15, 1967, and for purposes of this appeal, we need not comment as to any of the circumstances surrounding the move. (See Leal v. Palm Springs General Hospital, Inc., of Hialeah et al., 218 So.2d 800. (Third District Court of Appeals)) The first confrontation between the hospital's counsel and Leal's attorney occurred about January 20, 1967, and it was then that the hospital counsel expressed concern over the effects of the previous circumstances on the statutory lien provided for hospitals in General Laws of Florida, 19518 Ch. 27032, General Laws of Florida, 1951, Ch. 27032, its Claim of Lien in the circuit court, which was duly recorded. On the next day, January 25, copies of said lien were mailed to Trollinger and State Farm. The trial court held that the lien did not attach and was never perfected, and therefore, that the hospital had no claim or interest in the settlement proceeds disbursed before the filing of the lien. Moreover, the court further held that notwithstanding State Farm's knowledge that a lien could be filed, the settlement which occurred before such filing did not constitute an impairment of said lien.

Now we must focus our attention on the provisions of the Hospital Lien Act, supra. The pertinent provisions of this statute read as follows:

'SECTION 1. Every individual, partnership, firm, association, corporation, institution and governmental unit, and every combination of any of the foregoing, operating a hospital in any county in this State having a population in excess of 325,000, ³ according to the last preceding Federal Census, shall be entitled to a lien for all reasonable charges for hospital care, treatment and maintenance of ill or injured persons upon any and all causes of action, suits, claims, counterclaims and demands accruing to the persons to whom such care, treatment or maintenance are furnished, or accruing to the legal representatives of such persons, and upon all judgments, settlements and settlement agreements rendered or entered into by virtue thereof on account of illness or injuries giving rise to such causes of action, suits, claims, counterclaims, demands, judgment, settlement or settlement agreement and which necessitated or shall have necessitated such hospital care, treatment and maintenance.

'SECTION 2. In order to perfect such lien, the executive officer or agent of a hospital, before, or within ten days after, any such person shall have been discharged from such hospital, shall file in the office of the clerk of the circuit court of the county in which such hospital shall be located, a verified claim in writing setting forth the name and address of such patient, as it shall appear on the records of such hospital, the name and location of such hospital, and the name and address of the executive officer or agent of such hospital, the dates of admission to and discharge of such patient therefrom, the amount claimed to be due for such hospital care, treatment and maintenance, and, to the best knowledge of the person signing such claim, the names and addresses of all persons, firms or corporations claimed by such ill or injured person or by the legal representative of such person, to be liable on account of such illness or injuries; such claimant shall also, within one day after the filing of such claim or lien, mail a copy thereof by registered mail, postage prepaid, to each person, firm or corporation so claimed to be liable on account of such illness or injuries, at the address so given in such statement. The filing of such claim shall be notice thereof to all persons, firms or corporations who may be liable on account of such illness or injuries, whether or not they are named in such claim or lien, and whether or not a copy of such claim shall have been received by them.

'SECTION 3. The clerk of the circuit court shall endorse on such claim the date and hour of filing, shall provide a hospital lien book with proper index in which he shall record such claim, and shall show therein the date and hour of such filing. He shall be paid by the claimant as his fee for such filing and recording of each claim the sum of $1.25.

'SECTION 4. No release or satisfaction of any action, suit, claim, counterclaim, demand, judgment, settlement or settlement agreement, or of any of them, shall be valid or effectual as against such lien unless such lienholder shall join therein or execute a release of such lien.

'Any acceptance of a release or satisfaction of any such cause of action, suit, claim, counterclaim, demand or judgment and any settlement of any of the foregoing in the absence of a release or satisfaction of the lien referred to in this Act shall prima facie constitute an impairment of such lien, and the lienholder shall be entitled to an action at law for damages on account of such impairment, and in such action may recover from the one accepting such release or satisfaction or making such settlement the reasonable cost of such hospital care, treatment and maintenance. Satisfaction of any judgment rendered in favor of the lienholder in any such action shall operate as a satisfaction of the lien. Any action by the lienholder shall be brought in the court having jurisdiction of the amount of the lienholder's claim and may be brought and maintained in the county wherein the lienholder has his, its or their residence or place of business. If the lienholder shall prevail in such action, the lienholder shall be entitled to recover from the defendant, in addition to costs otherwise allowed by law, all reasonable attorney's fees and expenses incident to the matter.'

The above statutory provisions and the facts of the instant case have raised this question of law: What measures must a hospital take in order to cause the statutory lien to attach to '* * * all persons, firms or corporations claimed by such ill or injured person * * * to be liable on account of such illness or injuries * * *'?

State Farm, the appellee, contends that since its settlement with the claimant was made before the lien was filed, the lien never Attached and no impairment of such lien could...