Skaggs Chiropractic, L.L.C. v. Ford

• Decision Date: 05 June 2018
• Docket Number: No. SD 35234,SD 35234
• Parties: SKAGGS CHIROPRACTIC, L.L.C., Plaintiff-Appellant, v. Rose FORD, Defendant-Respondent.
• Court: Missouri Court of Appeals

564 S.W.3d 633

SKAGGS CHIROPRACTIC, L.L.C., Plaintiff-Appellant,

v.Rose FORD, Defendant-Respondent.

No. SD 35234

Missouri Court of Appeals, Southern District, Division One.

Filed: June 5, 2018

Application for Transfer to Supreme Court Denied August 21, 2018

Motion for Rehearing and/or Transfer to Supreme Court Denied June 19, 2018

DAVID F. BARRETT, Jefferson City, Mo, for Appellant.

SHELLY C. DREYER, Joplin, Mo, for Respondent.

DON E. BURRELL, J.

Skaggs Chiropractic, L.L.C. ("Provider") appeals the judgment entered after a trial de novo of a small-claims case. The judgment was "rendered in favor of" Rose Ford ("Patient") in regard to Provider’s claim for $5,135.56 in chiropractic services that Provider rendered to Patient for injuries she suffered in a motor vehicle collision.

In the judgment, the trial court found that Provider’s trial exhibit 3 (titled "ASSIGNMENT, LIEN, AND AUTHORIZATION [,]" ("the UCC lien") ) was "superseded by the medical lien statute, [s]ection 430.225" as another judge had previously ruled in Patient’s separate personal injury suit against the driver of the other vehicle ("the personal injury case").¹ When that previous ruling was made, Provider attempted to appeal it. We dismissed the appeal on the ground "that the ‘judgment’ " from May 2016 in the personal injury case was "not a final, appealable judgment" because "the judgment appear[ed] to dispose only of [Patient’s] ‘Motion for Determination of Liens ["lien determination motion"].’ " Ford v. Bridwell , No. SD34442 (Mo. App. S.D. Jan. 9, 2017).²

In the instant case, although the trial court found that Provider’s "care was necessary, ... the amount billed was fair and reasonable[,]" and "the medical lien is less than the amount billed[,]" it nonetheless "decline[d] to" enter any judgment for Provider because it would "be inconsistent with the result in the [personal injury] case." Provider’s first point asserts that "[t]he trial court erred in declining to grant judgment for the full amount of [Provider’s] bill, because the services rendered were necessary and the bill was fair and reasonable[.]" Provider’s second point claims the trial court erred "in determining that the decision in another case was binding in this matter, because the decision in that case is not a final judgment[.]"

Finding merit in Provider’s claim that the interlocutory "judgment" in the personal injury case did not require the outcome here, we reverse and remand the case with instructions to stay or dismiss the instant case without prejudice.

Applicable Principles of Review and Governing Law

We will affirm the judgment in a bench-tried case "unless it is not supported by substantial evidence, it is against the weight of the evidence, or it erroneously declares or applies the law." Rowan v. Coves N. Homes Ass'n , 426 S.W.3d 725, 727 (Mo. App. W.D. 2014).

As relevant to the circumstances of this case, the medical lien statute provides that a " ‘[c ]laim ’ ... [is] a claim of a patient for: (a) Damages from a tort-feasor; or (b) Benefits from an insurance carrier[.]" Section 430.225.1(1). A " ‘[p ]atient ’ ... [is] any person to whom a[n] ... other institution delivers treatment, care or maintenance for sickness or injury caused by a tort-feasor from whom such person seeks damages or any insurance carrier which has insured such tort-feasor." Section 430.225.1(6). The term " ‘[o ]ther institution ’ " means "a legal entity existing pursuant to the laws of this state which delivers treatment, care, or maintenance to patients who are sick or injured[.]" Section 430.225.1(5).

The medical lien statute goes on to provide that

[i]f the liens of ... other institutions exceed fifty percent of the amount due the patient, every ... other institution giving notice of its lien, as [provided in section 430.240³ ] shall share in up to fifty percent of the net proceeds due the patient, in the proportion that each claim bears to the total amount of all other liens of ... other institutions.

Section 430.225.3. The final paragraph of the medical lien statute provides: "Any health care provider electing to receive benefits hereunder releases the claimant from further liability on the cost of the services and treatment provided to that point in time." Section 430.225.5.

Factual and Procedural History

Provider filed the instant case in June 2017. The petition averred that Patient owed $5,135.56 for chiropractic care and "the cost of [Patient’s] care is covered by a UCC Lien[.]" The relief sought was "the cost of [Patient’s] care to the maximum under Missouri law governing small-claims actions, plus court cost." The associate circuit judge hearing the matter sustained Patient’s subsequent motion to dismiss the case, and Provider timely sought a trial de novo. See section 482.365 and Rule 151.01. When the case was assigned to the circuit court, Patient again moved to dismiss Provider’s petition on the ground that the personal injury case was "currently ... pending[,]" the personal injury court had ruled "that the lien amount due to [Provider] is $2083.66[,]" Provider filed the instant action "to attempt to circumvent the [personal injury] court’s prior ruling[,]" and Provider’s claim was "barred by the doctrine of collateral estoppel[.]"

At the October 2017 trial de novo , the parties' attorneys agreed that: (1) Patient suffered injuries as a result of a motor vehicle accident; (2) Provider rendered chiropractic services to Patient to treat those injuries; (3) Provider had not been paid by Patient; and (4) the personal injury case was still pending. Provider’s "account statement" was admitted into evidence, and it reflected $4,032.56 in charges and $9.56 in sales tax. Patient’s counsel agreed that Provider had not formally intervened as a party in the personal injury case; Provider "appear[ed] ... voluntarily."

Our judicial notice of the records from Provider’s unsuccessful attempt to appeal the lien determination ruling in the personal injury case indicates that Patient named the alleged tort-feasor as the sole defendant in that case. In February 2016, Patient filed the lien determination motion, which claimed that three entities (including Provider) had rendered medical services to Patient and that Provider’s "pro rata share of the settlement [of the personal injury case] for satisfaction of [Provider’s] lien is $2083.66" under the medical lien statute. A hearing was set on the lien determination motion, and counsel for Provider entered an appearance in the personal injury case.

At that hearing, Patient pointed out that she was "not saying [Provider] should not get paid; [it] did provide service to [Patient]. So, we would like to pay [Provider] pursuant to the statute, allow [it] to convert that to a lien under the statute and pay [it] the pro rata portion" under the medical lien law. One of the things Patient "want[ed] to prevent" in the personal injury case was "getting the case settled, [Patient] pay[s] under the lien statute ... and after the fact [Provider] ... goes after ... [Patient.]"

Provider contested efforts "to apply the limits of the healthcare lien law" and argued that "there’s been no request by [Provider] for the benefits of hospital lien law[.]" Provider asserted that if the medical lien was found to apply under such circumstances, then "it would violate Article 1, Section 13 of the Missouri Constitution by impairing [Provider’s] contract with [Patient]."

The personal injury court inquired about Provider’s actions concerning a lien in the following exchange.

BY THE [PERSONAL INJURY] COURT: Did [Provider] file a lien in this case?

BY [PATIENT'S COUNSEL]: That’s what I gave you, the UCC which is not valid.

BY [PROVIDER'S COUNSEL]: May I see the Exhibit?⁴

BY THE [PERSONAL INJURY] COURT: You may.

BY [PROVIDER'S COUNSEL]: We have the same one. If the Court likes I have a copy of it that I would be glad to give to the Court. There is actually a UCC filing in this case.

BY THE [PERSONAL INJURY] COURT: Was there anything filed in this case?

BY [PROVIDER'S COUNSEL]: Not in this case. [Provider] has filed a notice of lien under the Uniform Commercial Code with the Secretary of State.

BY [PATIENT'S COUNSEL]: Which is unenforceable.

BY [PROVIDER'S COUNSEL]: I would tender it to the Court, although it’s not marked.

BY THE [PERSONAL INJURY] COURT: All right. It’s admitted.

BY [PROVIDER'S COUNSEL]: I do have a follow-up thought.

BY THE [PERSONAL INJURY] COURT: All right. Go ahead.

BY [PROVIDER'S COUNSEL]: The suggestion that there’s not any lien; that’s incorrect, we're just not claiming the hospital lien. What we can do in this case, [sic] if the Court determines that there is a hospital lien and reduces the amount [Provider] cannot then pursue a civil action against the Plaintiff and that’s the problem in this case if there’s not any lien.

We suggest there is but there’s not one before the Court to be decided. If there’s not any lien there’s no reason [Provider] can't [sic] the [Patient] for the full amount of [Provider’s] bill. But if you find that there is a hospital lien that [Provider] has never requested that the [Patient] specifically disclaim you reduce what [Provider] can ultimately collect under any circumstance. And that’s when we're into constitutional problems.

Patient’s counsel argued:

[T]he law is clear that the exclusive remedy under Missouri law if you want a lien for medical providers is the Missouri lien statute.... So, a UCC lien is not valid. I'm not clear are they saying there is a lien or there’s not a lien? They can't have it both ways.

The personal injury court found "that this case does not differ from the case of [ Huey v. Meek , 419 S.W.3d 875, 876 (Mo. App. S.D. 2013),]" and ruled that "the lien amount due to [Provider] is in the amount of $2,083.66."

At the trial de novo in the instant case, Patient’s counsel informed the trial court that she thought the lien issues had been resolved in the personal injury case but acknowledged that a final judgment had not been rendered in that case. P...