American Family Mutual Insurance Co. v. Ward

774 S.W.2d 135, 1989 Mo. LEXIS 74, 1989 WL 86088
CourtSupreme Court of Missouri
DecidedAugust 1, 1989
Docket71297
StatusPublished
Cited by17 cases

This text of 774 S.W.2d 135 (American Family Mutual Insurance Co. v. Ward) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Family Mutual Insurance Co. v. Ward, 774 S.W.2d 135, 1989 Mo. LEXIS 74, 1989 WL 86088 (Mo. 1989).

Opinions

HIGGINS, Judge.

In January 1983 Kella Ward was involved in an accident when the car she was driving was struck by an automobile driven by Roderick Bernardy. After 12 days’ hospitalization at Truman Medical Center, Kel-la died as a result of the injuries she sustained in the accident. She was survived by her only child, Jennifer Kathleen Ward.

Prior to the filing of suit for the wrongful death of her mother, Jennifer Kathleen Ward, by her guardian, agreed to a settlement of her claim with Bemardy’s insurer, American Family Mutual Insurance. American Family agreed to pay $25,000, the limit of its policy covering Bernardy. TMC had previously filed a notice that it was asserting a hospital lien pursuant to sections 430.230-430.250, RSMo 1986, and [136]*136contended it was entitled to the payment of its lien from the amount which Jennifer received from American Family in settlement of her wrongful death claim. When payment of TMC’s lien was denied by Jennifer’s guardian, American Family and Ber-nardy filed this suit in interpleader naming Jennifer and her guardian, TMC, and the State of Missouri as defendants. Based on stipulated facts and cross-motions for summary judgment, the trial court ordered the settlement proceeds to be distributed as follows:

Brown and Brown attorney’s fee lien.$8,333.33
Dyanne K. Neff guardian for Jennifer.$6,833.34
Kathleen Ward Truman Medical Center hospital lien.$6,833.33
State of Missouri medicaid lien.$3,000.00
Total Settlement $25,000.00

Jennifer Ward, by her guardian, appealed the order allowing TMC a hospital lien in the sum of $6,833.33. The Court of Appeals, Western District, reversed and remanded for further proceedings to distribute the proceeds free of the TMC lien. This Court granted transfer because of the important question presented: Whether the proceeds of a wrongful death claim are subject to a hospital lien. This Court holds the trial court erroneously applied the law in concluding a hospital lien applies to proceeds from a wrongful death claim; therefore, the judgment of the trial court is reversed and remanded with directions.

Wrongful death is a statutory cause of action. §§ 537.080-537.100, RSMo 1986. Section 537.080 provides:

Whenever the death of a person results from any act, conduct, occurrence, transaction, or circumstance which, if death had not ensued, would have entitled such person to recover damages in respect thereof, the person or party who, or the corporation which, would have been liable if death had not ensued shall be liable in an action for damages, notwithstanding the death of the person injured, which damages may be sued for
(1) By the spouse or children, natural or adopted, legitimate or illegitimate, or by the father or mother of the deceased, natural or adoptive[.]

Section 537.090 provides:

In every action brought under section 537.080, the trier of the facts may give to the party or parties entitled thereto such damages as the trier of the facts may deem fair and just for the death and loss thus occasioned, having regard to the pecuniary losses suffered by reason of the death, funeral expenses, and the reasonable value of the services, consortium, companionship, comfort, instruction, guidance, counsel, training, and support of which those on whose behalf suit may be brought have been deprived by reason of such death and without limiting such damages to those which would be sustained prior to attaining the age of majority by the deceased or by the person suffering any such loss. In addition, the trier of the facts may award such damages as the deceased may have suffered between the time of injury and the time of death and for the recovery of which the deceased might have maintained an action had death not ensued. The mitigating or aggravating circumstances attending the death may be considered by the trier of the facts, but damages for grief and bereavement by reason of the death shall not be recoverable.

Section 537.095, in pertinent part, provides:

Any settlement or recovery by suit shall be for the use and benefit of those who sue or join, or who are entitled to sue or join, and of whom the court has actual written notice.
The cause of action for wrongful death: was not transmitted to plaintiffs by way of the survival of any right of action which the deceased himself might have exercised if he had lived, but instead was a new and distinct cause of action created purely by statute, which sprang into being and accrued to plaintiffs as the designated beneficiaries at the moment, [137]*137but not until the moment, that the death of the deceased occurred.

Nanney v. I.H. Shell & Son, 138 S.W.2d 717, 719 (Mo.App.1940); see also State ex rel. Jewish Hospital of St. Louis v. Buder, 540 S.W.2d 100 (Mo.App.1976); Klein v. Abramson, 513 S.W.2d 714 (Mo.App.1974); State ex rel. Silbowski v. Kimberlin, 504 S.W.2d 237 (Mo.App.1973). Similarly, in Blessing v. Chicago, B. & Q.R. Co., 171 S.W.2d 602, 603 (Mo.1943), this Court stated: “The statute created a new cause of action. It did not revive a cause of action belonging to a deceased.”

If a hospital meets certain requirements and follows certain procedures it can obtain a lien on the personal injury claims of its patients. §§ 430.230-430.250, RSMo 1986. Section 430.230, in pertinent part, provides qualified hospitals:

shall have a lien upon any and all claims, counterclaims, demands, suits, or rights of action of any person admitted to any hospital, clinic or other institution and receiving treatment, care or maintenance therein for any cause including any personal injury sustained by such person as the result of the negligence or wrongful act of another, which such injured person may have, assert or maintain against the person or persons causing such injury for damages on account of such injury, for the cost of such services....

Section 430.250 provides:

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American Family Mutual Insurance Co. v. Ward
774 S.W.2d 135 (Supreme Court of Missouri, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
774 S.W.2d 135, 1989 Mo. LEXIS 74, 1989 WL 86088, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-family-mutual-insurance-co-v-ward-mo-1989.