Baker v. Iowa Methodist Medical Center

542 N.W.2d 847, 1996 Iowa Sup. LEXIS 20, 1996 WL 19438
CourtSupreme Court of Iowa
DecidedJanuary 17, 1996
DocketNo. 94-1580
StatusPublished
Cited by2 cases

This text of 542 N.W.2d 847 (Baker v. Iowa Methodist Medical Center) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baker v. Iowa Methodist Medical Center, 542 N.W.2d 847, 1996 Iowa Sup. LEXIS 20, 1996 WL 19438 (iowa 1996).

Opinion

CARTER, Justice.

Iowa Methodist Medical Center (Iowa Methodist), which claims to have a lien on a bodily injury damage recovery, appeals from the district court’s judgment confirming the lien as to only part of the patient’s recovery. The injured patient who obtained medical services from Iowa Methodist is the plaintiff, Brad Baker. The district court confirmed Iowa Methodist’s hospital lien on the damages Baker recovered from the liability insurer of the tortfeasor who injured him. It refused, however, to confirm a hospital lien on the recovery Baker obtained from his own underinsured motorist carrier. After reviewing the record and considering the arguments presented, we reverse the judgment of the district court. We remand the case to that court with directions to confirm Iowa Methodist’s lien on both the recovery from the tortfeasor’s insurer and Baker’s own un-derinsurance carrier.

Baker was involved in a motor vehicle accident on April 6, 1993. As a result of personal injuries sustained in that accident, he received medical care at Iowa Methodist. The hospital asserts that the present unpaid charges for that care total $33,589.28. Iowa Methodist filed with the clerk of the district court a notice that it was asserting a lien for $33,589.28 against any sums collected or to be collected by Baker from responsible parties as a result of his injuries. Notice of the lien was given to Jason Curtis, the driver of the automobile that collided with Baker causing his injuries. Notice of the lien was also given to Curtis’s liability insurance carrier. Ultimately, Baker recovered the policy limits of Curtis’s liability insurance, which totaled $20,000. In addition, Baker was paid the sum of $20,000, which was the coverage limit of his own underinsured motorist coverage.

Baker commenced this action, which he has labeled an “interpleader.” It is in fact not a true interpleader action because the disputed res has not been tendered into court. Rather, it has been placed in a special bank account under the control of Baker and his attorney. The fact that it is not truly an interpleader action does not prevent an adjudication of the rights of the parties to the disputed res.

The district court found and concluded that Iowa Methodist’s hen was fully perfected on the $20,000 recovery from the tortfea-sor’s liability insurer. It concluded that no hen had been perfected on the recovery obtained from Baker’s own underinsured motorist carrier because that entity had not been given the statutory notice of a hospital hen that is required by Iowa Code section 582.2 (1993).

Iowa Methodist asserts on this appeal that the hen arising by operation of law under Iowa Code section 582.1 is vahd and enforceable against the underinsured motorist recovery in Baker’s control irrespective of its failure to give notice to the payor of those funds. Baker urges that the district court’s ruhng on this issue was correct and, in the alternative, that because the recovery resulted from his efforts he should be allowed to keep some equitable portion thereof free of the hospital’s claims. We consider these issues as well as the rights of Baker’s attorney to be paid from the recovery.

I. The Scope of Iowa Methodist’s Hospital Lien.

The statutes that control the result of this litigation are the following:

Every association, corporation, county, or other institution, including a municipal corporation, maintaining a hospital in the state, which shall furnish medical or other service to any patient injured by reason of an accident not covered by the workers’ compensation Act, shall, if such injured party shall assert or maintain a claim against another for damages on account of such injuries, have a hen upon that part going or belonging to such patient of any recovery or sum had or collected or to be [849]*849collected by such patient, or by the patient’s heirs or personal representatives in the ease of the patient’s death, whether by judgment or by settlement or compromise to the amount of the reasonable and necessary charges of such hospital for the treatment, care, and maintenance of such patient in such hospital up to the date of payment of such damages; provided, however, that this lien shall not in any way prejudice or interfere with ... any attorney or attorneys for handling the claim....

Iowa Code § 582.1.

No such lien shall be effective, however, unless a written notice containing the name and address of the injured person, the date of the accident, the name and location of the hospital, and the name of the person or persons, firm or firms, corporation or corporations alleged to be liable to the injured party for the injuries received, shall be filed in the office of the clerk of the district court of the county in which such hospital is located, prior to the payment of any moneys to such injured person, the person’s attorneys or legal representative, as compensation for such injuries; nor unless the hospital shall also mail, postage prepaid, a copy of such notice with a statement of the date of filing thereof to the person or persons, firm or firms, corporation or corporations alleged to be liable to the injured party for the injuries sustained prior to the payment of any moneys to such injured person, the person’s attorneys or legal representative, as compensation for such injuries. Such hospital shall mail a copy of such notice to any insurance carrier which has insured such person, firm or corporation against such liability, if the name and address shall be known.

Iowa Code § 582.2 (emphasis added).

As a first matter to be settled, we conclude, and Baker does not argue strongly to the contrary, that the words “any recovery or sum ... collected or to be collected” embrace Baker’s underinsured motorist recovery as well as his tort recovery. The issue then is whether the lien to which Iowa Methodist is entitled has been lost for failure to give proper notice.

Relying on the last sentence in section 582.2, which we have italicized, Iowa Methodist argues that no notice to the under-insured motorist carrier was required because it was not aware of that carrier’s involvement. We believe that the language on which Iowa Methodist relies applies to liability insurance carriers for the tortfeasor and not to underinsured or uninsured motorist coverages. Carriers that provide the latter type of coverage are persons, firms, or corporations “alleged to be liable to the injured party for the injuries received,” and thus are required to be notified of the lien under section 582.2.

We conclude that in order to satisfy section 582.2 Iowa Methodist was required to give Baker’s underinsured motorist carrier notice of its lien. We disagree with the district court, however, as to the consequences of failing to give that notice on the insurance payment still held by Baker and maintained intact. We are convinced that the purpose of the notice requirements in section 582.2 is to advise damage payers as to the potential liability under section 582.3 should they not act to protect the hospital’s lien rights. These notice provisions are not for the benefit of the injured patient who is not required to be notified by section 582.2.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
542 N.W.2d 847, 1996 Iowa Sup. LEXIS 20, 1996 WL 19438, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-v-iowa-methodist-medical-center-iowa-1996.