Ackre v. Chapman & Chapman, P.C.

2010 ND 167, 788 N.W.2d 344, 2010 N.D. LEXIS 172, 2010 WL 3397352
North Dakota Supreme Court·Decided August 31, 2010·No. No. 20100044·Published·Cited by 17 cases

Opinions

KAPSNER, Justice.

[¶ 1] Robert Ackre appeals from a summary judgment dismissing his action alleging Chapman and Chapman, P.C., committed an unlawful practice under N.D.C.C. ch. 51-15 and attorney misconduct under N.D.C.C. § 27-13-08. We hold Ackre does not have standing to sue Chapman and Chapman for attorney misconduct and Ackre has not raised a factual issue regarding his unlawful practice claim. We affirm.

I

[¶ 2] Ackre, a licensed North Dakota attorney, sued the law firm of Chapman and Chapman, alleging both he and Chapman and Chapman directly compete to represent enrolled members of federally recognized American Indian Tribes as plaintiffs in personal injury litigation involving motor vehicle accidents. Ackre claims federal and state statutes, see 42 U.S.C. §§ 2651-2653 and N.D.C.C. § 35-18-01, require Native American clients to use proceeds from personal injury settlements to satisfy hospital liens and to reimburse the United States Department of Health and Human Services for government paid medical expenses for treatment for injuries sustained by Native Americans [346]*346in motor vehicle accidents. Ackre asserts Chapman and Chapman’s failure to advise its Native American clients about the mandatory statutory requirements to use settlement proceeds to satisfy hospital liens and to reimburse the federal government for government paid medical expenses constitutes attorney misconduct under N.D.C.C. § 27-13-08 and an unlawful practice under N.D.C.C. ch. 51-15. Ackre asserts Chapman and Chapman’s conduct damaged his law practice, and he sought treble damages in excess of $50,000 and attorney fees under those statutes.

[¶ 3] Chapman and Chapman moved to dismiss Ackre’s complaint under N.D.R.Civ.P. 12(b)(6), arguing neither federal nor state statutes require Native American clients or their lawyers to use settlement proceeds to reimburse the federal government for medical expenses paid by the government. Chapman and Chapman argued federal law gives the federal government a right to recover medical expenses from a tortfeasor who is liable for a Native American client’s injury, but the federal government may not directly sue a Native American client to recover proceeds received from the responsible tort-feasor. Chapman and Chapman argued the hospital lien statute, N.D.C.C. § 35-18-01, was not applicable because it was up to the hospital, not the client’s attorney, to enforce the hospital lien. Chapman and Chapman claimed Ackre was not an injured party under N.D.C.C. § 27-13-08 and its alleged conduct was not an unlawful practice under N.D.C.C. ch. 51-15.

[¶ 4] Ackre resisted Chapman and Chapman’s motion to dismiss and submitted documents from a settlement procured by Chapman and Chapman for a Native American client in which the client received $50,000 from the tortfeasors’ motor vehicle insurance carrier. Those documents included a hospital bill with $46,481 in total hospital charges with “IHS-Bel-court ND” identified as the client’s insurance company, a letter from the United States Department of Health and Human Services stating it had paid $30,861 for medical care and treatment furnished by or at the expense of Indian Health Services for that client, and a February 4, 2004, cover letter from the tortfeasors’ insurance company to an attorney with Chapman and Chapman, which stated:

[L]et this confirm settlement of your client’s bodily injury claim for our insured’s policy limit of $50,000.00. This amount is contingent upon signed release of all claims with indemnity from your client and inclusive of all medical bills incurred. This will also confirm that you will honor any and all outstanding liens.

Ackre provided the district court with a copy of a “full release of all claims,” which was signed by an attorney with Chapman and Chapman and by the Native American client and stated:

The undersigned acknowledge(s) that certain liens and subrogation interests may have been presented in connection with this action and, as a condition of this settlement, the undersigned agree(s) to satisfy all unpaid liens and/or subrogation interests out of the proceeds of the aforesaid settlement. The undersigned do(es) further expressly stipulate(s) and agree(s) in consideration of the aforesaid payment to them to indemnify and hold forever harmless [the tortfeasors and their insurance company] against loss from any claims, demands or actions that may hereafter be made against them or either of them, or their agents or representatives, as a result of any medical liens, or subrogation interests that may exist with regard to the undersigned’s accident and resulting injuries and damages.
[347]*347The undersigned further agree(s) to indemnify and hold harmless [the tort-feasors and their insurance company] from any and all claims for indemnity, contribution and equitable subrogation which may be made against them by reason of the aforementioned incident. Such agreement to indemnify and hold forever harmless the aforesaid [tortfea-sors and their insurance company] shall include defending them from any and all such claims presented against them, and reimbursing all attorney fees, litigation expenses and court costs, taxable or otherwise, incurred by them in connection with any such claim.

Ackre also provided the court with Chapman and Chapman’s responses to requests for admission in which Chapman and Chapman stated it had no duty to contact its clients’ treating hospital, Indian Health Services, or the federal government about payment of its clients’ medical bills and admitted it had not contacted those entities, informed them about the settlement, or paid its clients’ medical expenses.

[¶ 5] The district court considered Ackre’s submitted materials and granted Chapman and Chapman summary judgment, concluding Ackre was not entitled to recovery under either N.D.C.C. ch. 51-15 or N.D.C.C. § 27-13-08. The court said the federal government, as the provider of medical care for Native Americans through Indian Health Services or other providers, has a right of subrogation against a tortfeasor under federal statute, but the federal government does not have a direct claim against an injured Native American for government paid medical care. The court explained injured Native Americans who receive treatment at hospitals that are not part of Indian Health Services do not have individual responsibility to pay for the treatment because the treating hospitals have agreed to full payment at a reduced rate from the federal government. The court did recognize, however, that Chapman and Chapman may 1 be subject to a claim for estoppel or indemnification by an appropriate entity because of the language of the proffered settlement agreement. The court decided Ackre was not entitled to recover for Chapman and Chapman’s alleged misconduct under N.D.C.C. § 27-13-08, because Ackre was not the “party injured.” The court also concluded Chapman and Chapman’s conduct did not constitute an unlawful practice under N.D.C.C. § 51-15-02, because that conduct was not deceptive or fraudulent under the procedures for payment for an injured Native American client’s medical treatment. The court also said Ackre’s claimed damages were speculative.

II

Free access — add to your briefcase to read the full text and ask questions with AI

Ackre v. Chapman & Chapman, P.C., 2010 ND 167, 788 N.W.2d 344, 2010 N.D. LEXIS 172, 2010 WL 3397352 (N.D. 2010).

2010 ND 167 (Ackre v. Chapman & Chapman, P.C.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Petro-Hunt v. Tank
2024 ND 46 (North Dakota Supreme Court, 2024)
WSI v. Kringlie
2024 ND 26 (North Dakota Supreme Court, 2024)
Kutcka v. Gateway Building Systems
2023 ND 91 (North Dakota Supreme Court, 2023)
Krenz v. XTO Energy, Inc.
2017 ND 19 (North Dakota Supreme Court, 2017)
Dakota Resource Council v. Stark County Board of County Commissioners
2012 ND 114 (North Dakota Supreme Court, 2012)
Working Capital 1 v. Quality Auto Body
2012 ND 115 (North Dakota Supreme Court, 2012)
Benz Farm, LLP v. Cavendish Farms, Inc.
2011 ND 184 (North Dakota Supreme Court, 2011)
Weeks v. Workforce Safety & Insurance
2011 ND 188 (North Dakota Supreme Court, 2011)
Riverwood Commercial Park, LLC v. Standard Oil Co.
2011 ND 95 (North Dakota Supreme Court, 2011)
First International Bank & Trust v. Peterson
2011 ND 87 (North Dakota Supreme Court, 2011)
State v. Kinsella
2011 ND 88 (North Dakota Supreme Court, 2011)
State v. Charbonneau
2010 ND 246 (North Dakota Supreme Court, 2010)
Gajewski v. State
2010 ND 237 (North Dakota Supreme Court, 2010)
State v. Hager
2010 ND 217 (North Dakota Supreme Court, 2010)
Interest of R.J.
2010 ND 207 (North Dakota Supreme Court, 2010)