Baltimore Cnty. v. Ulrich

223 A.3d 1111, 244 Md. App. 410
CourtCourt of Special Appeals of Maryland
DecidedJanuary 30, 2020
Docket2541/18
StatusPublished
Cited by2 cases

This text of 223 A.3d 1111 (Baltimore Cnty. v. Ulrich) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baltimore Cnty. v. Ulrich, 223 A.3d 1111, 244 Md. App. 410 (Md. Ct. App. 2020).

Opinion

Baltimore County, Maryland v. Charles Ulrich, No. 2541, Sept. Term 2018. Opinion by Arthur, J.

WORKERS’ COMPENSATION ACT—STATUTORY LIEN ON EMPLOYEE’S RECOVERY FROM THIRD-PARTY HEALTHCARE PROVIDER

If a person other than an employer is liable for a work-related injury, the employee may bring a claim under the Workers’ Compensation Act against the employer or may bring an action for damages against the third-party tortfeasor. Md. Code (1991, 2016 Repl. Vol.), § 9-901 of the Labor and Employment Article. When an employee pursues a claim for workers’ compensation benefits and also sues the third party for damages, the employer retains a subrogation interest in the reimbursement of benefits that it paid under the Act, including medical expenses. This subrogation interest acts as a statutory lien on the employee’s recovery of damages from a third-party tortfeasor. See id. § 9-902(e).

This statutory lien arises only when the employee recovers damages from a third party who is liable for the compensable injury. A third-party healthcare provider that merely treats an employee’s work-related injury is not liable for that injury, but only for the additional harm resulting from negligent treatment. Accordingly, where an employer has paid for medical services exclusively to treat the compensable injury (not to treat the additional harm from medical negligence), the employer has no subrogation interest in the reimbursement of those medical expenses out of the damages recovered by an employee for the alleged negligent treatment.

In this case, the injured employee recovered a monetary settlement in a malpractice action against the third-party healthcare providers that treated his work-related injury. The employee did not recover any sums for medical expenses in the malpractice action. The employer was not entitled to be reimbursed for medical expenses that resulted solely from the work-related injury—expenses that the employer alone was obligated to pay and that the employee had no legal right to recover from the third-party healthcare providers. Circuit Court for Baltimore County Case No. 03-C-17-001691

REPORTED

IN THE COURT OF SPECIAL APPEALS

OF MARYLAND

No. 2541

September Term, 2018 ______________________________________

BALTIMORE COUNTY, MARYLAND

v.

CHARLES ULRICH

______________________________________

Nazarian, Arthur, Bair, Gary E. (Specially Assigned),

JJ.* ______________________________________

Opinion by Arthur, J. ______________________________________

Filed: January 30, 2020

Pursuant to Maryland Uniform Electronic Legal Materials Act *Chief Judge Matthew J. Fader and Judge (§§ 10-1601 et seq. of the State Government Article) this document is authentic. Christopher B. Kehoe did not participate in the 2020-01-30 13:56-05:00 Court’s decision to designate this opinion for publication pursuant to Maryland Rule 8-605.1. Suzanne C. Johnson, Clerk Baltimore County, as a self-insured employer, paid for medical services to treat an

employee’s work-related injury. The employee later recovered a monetary settlement in

a tort action for medical malpractice in the treatment of that injury. The County

demanded reimbursement, out of the settlement proceeds, for all medical expenses that it

had paid.

Both the Workers’ Compensation Commission and the Circuit Court for Baltimore

County determined that the County was not entitled to reimbursement for those medical

expenses. The rationale for both decisions was that the medical expenses resulted solely

from the work-related injury; the medical expenses would have been incurred even if no

malpractice had occurred; and, thus, the malpractice defendants had no liability to pay

those medical expenses.

In this appeal, Baltimore County contends that the Commission and the circuit

court misconstrued the reimbursement requirement codified at Md. Code (1991, 2016

Repl. Vol.), § 9-902(e) of the Labor and Employment Article (“LE”). Because the

County has failed to establish any error, we affirm the judgment upholding the

Commission’s decision.

FACTUAL AND PROCEDURAL BACKGROUND

A. Injury Arising out of Mr. Ulrich’s Employment with Baltimore County

On June 20, 2011, Charles Ulrich suffered an accidental injury arising out of his

employment as a maintenance specialist for the Baltimore County Department of

Recreation and Parks. Mr. Ulrich had been lifting a heavy trash receptacle when he

suddenly felt a painful “snap” near his left elbow. Later that day, Mr. Ulrich sought treatment at a facility operated by Concentra

Health Services. A family practitioner diagnosed him with a strain of the left biceps and

forearm. He soon returned to work with restrictions on the maximum weight that he

could lift or carry, but he continued to experience pain and weakness in his left arm.

Five weeks after the injury, a hand specialist examined Mr. Ulrich and determined

that he had suffered a complete tear of the left distal biceps tendon. Mr. Ulrich stopped

working and promptly underwent surgery to repair the tendon.

Mr. Ulrich filed a claim with the Workers’ Compensation Commission regarding

his work-related injury. Baltimore County, a self-insured employer, paid for the surgery

and related medical services. The County also paid temporary total disability benefits for

an approximately four-month period in which Mr. Ulrich was completely unable to work.

Upon his return to work, Mr. Ulrich found himself unable to meet his job

responsibilities, even after limiting his duties to try to avoid any heavy lifting. He retired

in early 2013 and received disability retirement benefits through the Employees’

Retirement System of Baltimore County. The Workers’ Compensation Commission later

determined that, under LE § 9-610, these benefits satisfied the County’s obligation to pay

additional disability compensation under the Workers’ Compensation Act.

B. Mr. Ulrich’s Medical Malpractice Action

In 2014, Mr. Ulrich filed a malpractice claim against Concentra. He alleged that

he “experienced permanent and disabling injuries, a severe shock to his nerves and

nervous system, pain, mental anguish, [and] unnecessary procedures, ha[d] been and

w[ould] continue to be obligated to receive hospital and medical care, ha[d] been and

2 w[ould] continue to be prevented from engaging in his usual activities, duties and

pursuits, ha[d] incurred and w[ould] continue to incur medical expenses in the future, and

ha[d] otherwise been hurt, injured and damaged.” His certifying expert opined that

Concentra’s employees had breached the standard of care when they failed to diagnose

the ruptured tendon at the time of the initial injury. According to the expert, Mr. Ulrich

suffered permanent damage to the strength and functioning of his left arm because of the

misdiagnosis.

Concentra removed the action to the United States District Court for the District of

Maryland, based on diversity of citizenship.

Through interrogatories, Concentra asked Mr. Ulrich to “[s]tate in detail all of the

injuries and damages, including but not limited to physical, mental, emotional, or

financial [injuries and damages]” caused by the alleged negligence. In response, he

asserted that the permanent weakness in his left arm, in combination with other ailments,

left him unable to perform manual labor. He explained that he had retained an expert to

calculate the loss of income resulting from his disability. He stated that his “future

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Bluebook (online)
223 A.3d 1111, 244 Md. App. 410, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baltimore-cnty-v-ulrich-mdctspecapp-2020.