Arizona Department of Administration v. Cox

213 P.3d 707, 222 Ariz. 270, 567 Ariz. Adv. Rep. 35, 2009 Ariz. App. LEXIS 730
CourtCourt of Appeals of Arizona
DecidedAugust 17, 2009
Docket2 CA-CV 2008-0198
StatusPublished
Cited by4 cases

This text of 213 P.3d 707 (Arizona Department of Administration v. Cox) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arizona Department of Administration v. Cox, 213 P.3d 707, 222 Ariz. 270, 567 Ariz. Adv. Rep. 35, 2009 Ariz. App. LEXIS 730 (Ark. Ct. App. 2009).

Opinion

*272 OPINION

HOWARD, Chief Judge.

¶ 1 This ease arises from appellant/plaintiff Arizona Department of Administration’s (ADOA) claim that it was entitled to recover the cost of medical care that it provided to appellees/defendants Jennifer and Richard Cox through the state health insurance plan. ADOA appeals the trial court’s decision granting summary judgment in favor of ADOA, but awarding it a much lower amount than it had claimed. In their cross-appeal, the Coxes contend ADOA is not entitled to reimbursement. We affirm the grant of summary judgment in favor of ADOA, but vacate the amount awarded and remand for the trial court to enter an award of $21,746.45.

Facts

¶ 2 The parties generally do not dispute the relevant facts. ADOA, an agency of the State of Arizona, operates a self-insured plan to provide health care benefits to state employees and their dependents. Medical services provided by the plan are paid for by a state “health insurance trust fund.” 1 A.R.S. § 38-654(A). ADOA contracts with United Healthcare Insurance Company to serve as a third-party administrator of the plan.

¶ 3 Jennifer and Richard Cox were involved in an automobile accident, from which they sustained injuries and required medical care and treatment. At the time of the accident, the Coxes were eligible participants in the state plan. The plan paid $25,012.11 for the Coxes’ medical care and treatment. With the aid of counsel, the Coxes filed an action against the third party responsible for the accident and settled their claims against that party for $30,000. This settlement was not apportioned according to types of damages. In addition, the Coxes received $200,000 from their automobile liability insurance carrier under the underinsured motorist provision of their policy. ADOA demanded that the Coxes reimburse it for the amount the state had paid for the Coxes’ treatment, pursuant to A.R.S. § 12-962. The Coxes refused and ADOA sued them. Both parties moved for summary judgment. The trial court granted summary judgment in favor of ADOA and against the Coxes, but awarded ADOA only $2,475.00.

Discussion

¶ 4 ADOA argues that, although the trial court properly granted summary judgment in its favor, the court erred in not awarding ADOA the full amount it had paid for the Coxes’ medical care. The Coxes contend the trial court erred in awarding any amount to ADOA, arguing ADOA is not entitled to reimbursement for various reasons.

¶ 5 Summary judgment is proper when “there is no genuine issue as to any material fact and ... the moving party is entitled to a judgment as a matter of law.” Ariz. R. Civ. P. 56(e)(1). We review de novo whether there are any genuine issues of material fact and whether the trial court applied the law properly. Brookover v. Roberts Enters., Inc., 215 Ariz. 52, ¶ 8, 156 P.3d 1157, 1160 (App. 2007). We also review de novo questions regarding the construction of statutes. Canon Sch. Dist. No. 50 v. W.E.S. Constr. Co., 177 Ariz. 526, 529, 869 P.2d 500, 503 (1994).

Whether ADOA can Assert a Claim

¶ 6 We first address the Coxes’ claim on cross-appeal that ADOA may not assert a claim for reimbursement under § 12-962 because a resolution in the Coxes’ favor on this matter would dispose of the issues ADOA raises on appeal.

A. State or a Political Subdivision

¶ 7 The Coxes first argue the health insurance trust fund is not “the state” or a “political subdivision” and therefore payments from the fund do not fall within the scope of § 12-962. That section provides:

A. If this state or any of its political subdivisions provides medical care and treatment to a person who is injured or *273 suffers from a disease under circumstances creating tort liability upon a third person, the state or political subdivision, either jointly or severally, may recover from the third person or the injured or diseased person the reasonable value of the medical care and treatment....
B. To enforce this right, the state or political subdivision may do the following:
3. Recover the cost of care from the injured or diseased person or the person’s estate to the extent that such person has received money in settlement of the claim or satisfaction of a judgment against the third party.

Section 38-654(A) established the employee health insurance trust fund “for the purpose of administering the state employee health insurance benefit plans.... The fund shall be administered by the director of the department of administration.”

¶ 8 When construing a statute, we must “determine and give effect to legislative intent.” City of Phoenix v. Phoenix Employment Relations Bd., 207 Ariz. 337, ¶ 11, 86 P.3d 917, 920 (App.2004). We look first to the plain language of the statute because that is the best indicator of legislative intent. Mejak v. Granville, 212 Ariz. 555, ¶ 8, 136 P.3d 874, 876 (2006). If the meaning of the language is clear, we do not employ any further methods of construction. N. Valley Emergency Specialists, L.L.C. v. Santana, 208 Ariz. 301, ¶ 9, 93 P.3d 501, 503 (2004).

¶ 9 When a statute is ambiguous, “ ‘we consider the statute’s context; its language, subject matter, and historical background; its effects and consequences; and its spirit and purpose.’ ” Scheehle v. Justices of the Supreme Court of the State of Ariz., 211 Ariz. 282, ¶ 16, 120 P.3d 1092, 1098 (2005), quoting Hayes v. Cont’l Ins. Co., 178 Ariz. 264, 268, 872 P.2d 668, 672 (1994). “Statutes must be given a sensible construction that accomplishes the legislative intent and which avoids absurd results.” Ariz. Health Care Cost Containment Sys. v. Bentley, 187 Ariz. 229, 233, 928 P.2d 653, 657 (App.1996); see also City of Tucson v. Clear Channel Outdoor, Inc., 218 Ariz. 172, ¶ 33, 181 P.3d 219, 230 (App.2008) (when interpreting particular term, “ ‘we apply a praeticál and commonsensical construction’”), quoting Douglass v. Gendron, 199 Ariz. 593, ¶ 10, 20 P.3d 1174, 1177 (App.2001).

¶ 10 Section 12-962(A) only requires that the state “provide[] medical care and treatment to a person who is injured” by a tort in order to recover the medical costs paid.

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Bluebook (online)
213 P.3d 707, 222 Ariz. 270, 567 Ariz. Adv. Rep. 35, 2009 Ariz. App. LEXIS 730, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arizona-department-of-administration-v-cox-arizctapp-2009.