Bergan Mercy Health System v. Haven

620 N.W.2d 339, 260 Neb. 846, 2000 Neb. LEXIS 248
CourtNebraska Supreme Court
DecidedDecember 15, 2000
DocketS-99-078
StatusPublished
Cited by68 cases

This text of 620 N.W.2d 339 (Bergan Mercy Health System v. Haven) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bergan Mercy Health System v. Haven, 620 N.W.2d 339, 260 Neb. 846, 2000 Neb. LEXIS 248 (Neb. 2000).

Opinions

[848]*848Per Curiam.

I.NATURE OF CASE

The two questions presented in this appeal are (1) whether the Nebraska medical lien statute, Neb. Rev. Stat. § 52-401 (Reissue 1998), constitutes unconstitutional special legislation under Neb. Const, art. Ill, § 18, and (2) whether Neb. Rev. Stat. § 25-1563.02 (Reissue 1995) exempts the proceeds of a personal injury settlement from a lien filed under § 52-401.

II.FACTUAL BACKGROUND

The underlying facts of this case are not in dispute. Appellee Dondi S. Haven was injured in an automobile accident and was treated by appellant Bergan Mercy Health System (Bergan) from November 1 through 4, 1996, and on February 21 and June 5, 1997. There is no issue in this appeal whether the charges of $23,000 are the usual, customary, or reasonable charges as the parties have stipulated for the purposes of this motion that the charges are usual, customary, and reasonable.

Bergan’s operative petition alleges that General Casualty Insurance (General Casualty) insured the tort-feasor responsible for Haven’s injuries. Bergan alleges that it filed a notice of hospital lien with General Casualty, pursuant to § 52-401. Bergan further alleges that subsequent to the filing of the notice of hospital lien, Haven settled his claim against the tort-feasor for in excess of $100,000 and that Haven’s attorney claimed an attorney fee of one-third of that amount.

III.PROCEDURAL BACKGROUND

Bergan filed suit in the district court, alleging two “counts,” the first of which simply prayed for judgment on the unpaid debt, and the second of which invoked the provisions of § 52-401. Haven’s answer, inter alia, charged that § 52-401 was unconstitutional special legislation and was in direct conflict with § 25-1563.02, which exempts personal injury settlements from the claims of creditors.

Bergan filed a motion for partial summary judgment, which the district court sustained on March 10, 1998. Haven filed a motion to reconsider, which was sustained on July 23, 1998. In its order sustaining the motion to reconsider, the district court [849]*849determined that § 52-401 conflicted with § 25-1563.02 and that § 52-401 was unconstitutional special legislation under Neb. Const, art. Ill, § 18. Bergan appealed from the July 23 order, but the appeal was dismissed on September 18, 1998, by the Nebraska Court of Appeals for lack of a final, appealable order in case No. A-98-847.

Trial was had to the district court on January 15, 1999. Incorporating by reference the reasons stated in its order of July 23, 1999, the district court entered judgment in favor of Bergan on count I of its petition, finding that such services and supplies were provided at the specific request of Haven on an open account and per Haven’s express agreement to pay. Haven has not cross-appealed the decision as to count I. As to count II, whether § 25-1563.02 exempts the proceeds of a personal injury settlement from a lien filed under § 52-401, the district court, giving deference to Matter of Borgmann, 176 B.R. 172 (Bankr. D. Neb. 1994), determined that under the exemption statute, § 25-1563.01, the mandatory terms thereof exempt personal injury or wrongful death settlements, whether in a lump sum or on a periodic basis, from any claims of creditors, which exemption includes liens under § 52-401. As to the defense of unconstitutionality of § 52-401, the district court found that the hospital lien statute, § 52-401, fails the “substantial difference” classification test and creates an arbitrary and unreasonable method of classification not based on any substantial difference or circumstances or situation between patients with a claim for their injuries against a third party and those patients who seek treatment for injuries who do not have a claim for the injuries against a third party.

Bergan filed a motion in this court to bypass the Court of Appeals, which was granted. Bergan has also properly filed a notice of a constitutional question as required by Neb. Ct. R. of Prac. 9E (rev. 2000).

IV. ASSIGNMENTS OF ERROR

Bergan assigns, consolidated and restated, that the district court erred in determining that (1) § 52-401 is unconstitutional because it constitutes special legislation that contravenes Neb. Const, art. Ill, § 18, and (2) § 52-401 conflicts with [850]*850§ 25-1563.02 and that the proceeds of a personal injury settlement are exempt from the lien established by § 52-401.

V. STANDARD OF REVIEW

Whether a statute is constitutional is a question of law; accordingly, the Nebraska Supreme Court is obligated to reach a conclusion independent of the decision reached by the court below. State ex rel. Stenberg v. Moore, 258 Neb. 738, 605 N.W.2d 440 (2000); State ex rel. Stenberg v. Moore, 258 Neb. 199, 602 N.W.2d 465 (1999).

Statutes are afforded a presumption of constitutionality, and the unconstitutionality of a statute must be clearly established before it will be declared void. Daily v. Board of Ed. of Morrill Cty., 256 Neb. 73, 588 N.W.2d 813 (1999). The burden of establishing the unconstitutionality of a statute is on the one attacking its validity. Daily v. Board of Ed. of Morrill Cty., supra; State ex rel. Shepherd v. Neb. Equal Opp. Comm., 251 Neb. 517, 557 N.W.2d 684 (1997).

Statutory interpretation is a matter of law, in connection with which an appellate court has an obligation to reach an independent, correct conclusion irrespective of the determination made by the court below. Phelps Cty. Bd. of Equal. v. Graf, 258 Neb. 810, 606 N.W.2d 736 (2000); Snyder v. Contemporary Obstetrics & Gyn., 258 Neb. 643, 605 N.W.2d 782 (2000).

VI. ANALYSIS

1. Special Legislation

Bergan assigns that the trial court erred in determining that § 52-401 is unconstitutional special legislation. Section 52-401 provides:

Whenever any person employs a physician, nurse, or hospital to perform professional service or services of any nature, in the treatment of or in connection with an injury, and such injured person claims damages from the party causing the injury, such physician, nurse, or hospital, as the case may be, shall have a lien upon any sum awarded the injured person in judgment or obtained by settlement or compromise on the amount due for the usual and customary charges of such physician, nurse, or hospital applicable [851]*851at the times services are performed, except that no such lien shall be valid against anyone coming under the Nebraska Workers’ Compensation Act.

A legislative act constitutes special legislation, violative of Neb. Const. art. III, § 18, if (1) it creates an arbitrary and unreasonable method of classification or (2) it creates a permanently closed class. Swanson v. State, 249 Neb. 466, 544 N.W.2d 333 (1996); City of Ralston v.

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Bluebook (online)
620 N.W.2d 339, 260 Neb. 846, 2000 Neb. LEXIS 248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bergan-mercy-health-system-v-haven-neb-2000.