Board of Trustees v. American Resources Insurance Co.

5 So. 3d 521, 2008 WL 1919904
CourtSupreme Court of Alabama
DecidedSeptember 19, 2008
Docket1061492
StatusPublished
Cited by8 cases

This text of 5 So. 3d 521 (Board of Trustees v. American Resources Insurance Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Trustees v. American Resources Insurance Co., 5 So. 3d 521, 2008 WL 1919904 (Ala. 2008).

Opinion

SEE, Justice.

The Board of Trustees of the University of Alabama, for its division, University of Alabama Hospital in Birmingham (“UAB Hospital”), and Gadsden Regional Medical Center (“Gadsden Regional”) (hereinafter collectively referred to as “the hospitals”) claim that a settlement among American Resources Insurance Company, Inc. (“American Resources”), Hill Plumbing and Heating Inc. (“Hill Plumbing”), Raymond Luther Hill (“Hill”), the law firm of Cory, Watson, Crowder & Degaris, P.C. (“Cory Watson”), and David A. Gann, as administrator of the estate of Patricia Ann Gann, deceased (“Gann”) (hereinafter collectively referred to as “the Gann parties”), impaired the hospitals’ respective statutory hospital liens. The hospitals appeal from a summary judgment in favor of the Gann parties and argue that there is substantial evidence indicating that the hospitals’ respective liens are enforceable against the Gann parties. We affirm in part and reverse in part.

Facts and Procedural History

The facts of the case are undisputed. On May 22, 2004, Patricia Ann Gann (“Patricia”) was fatally injured in an automobile accident in Gadsden in Etowah County. The accident occurred when the vehicle in which Patricia was a passenger was struck by a sport-utility vehicle (“SUV”) driven by Hill, an agent of Hill Plumbing. Patricia was taken to Gadsden Regional for emergency care and then, later that same day, was transferred to UAB Hospital. Patricia remained at *524 UAB Hospital until she died of her injuries on June 18, 2004. The charges for Patricia’s treatment totaled $23,817.25 at Gadsden Regional and $415,229.12 at UAB Hospital. Under § 35-11-370, Ala. Code 1975, 1 the hospitals had an automatic lien for all reasonable charges the hospitals incurred for Patricia’s treatment, and each hospital attempted to perfect its lien pursuant to § 35-ll-371(a), Ala.Code 1975. 2 Gadsden Regional filed its hospital lien in the Etowah Probate Court on June 23, 2004. UAB Hospital filed its lien on June 30, 2004, in the St. Clair Probate Court 3 and, in February 2005, filed a second lien, this time in Etowah County.

A personal-injury action was filed in the Etowah Circuit Court on behalf of Patricia and against Hill, Hill Plumbing, and others (hereinafter collectively referred to as “the Etowah defendants”), seeking, among other things, past and future medical expenses. Following Patricia’s death, the complaint was amended to add a wrongful-death claim and to name David Gann as Patricia’s personal representative. This Etowah action was subsequently sent to mediation, and, although neither hospital was a party to the action, the hospitals were invited to the mediation by court order because of their respective liens.

All the parties to the Etowah action and UAB Hospital attended the mediation. UAB Hospital eventually withdrew from the process because it was unable to settle with Gann. The remaining parties reached a settlement and reduced their agreement to a memorandum; that memorandum provided:

“Following mediation of this cause on November 30, 2005, it is hereby agreed that this action will be settled and the
*525 claims against [the Etowah defendants] for wrongful death under the first amended complaint dismissed with prejudice in consideration of the payment of the sum of $700,000.00. Additional Terms of Settlement:
“(1) [Gann] will dismiss all personal injury claims under the original complaint or complaint as amended with prejudice.
“(2) [Gann] and his counsel will save and hold defendants harmless from all liens or subrogation claims, including but not limited to UAB Hospital and Gadsden Regional Medical Center and any expense, lawyers fees or costs necessary to defend same.
“It is understood and agreed that the foregoing ‘additional terms of settlement’ have been agreed upon by the parties with the mediator acting as scrivener. The parties agree to execute such releases and a stipulation of dismissal or other request for a dispositive order as may be appropriate.”

The day after the parties reached this agreement, on December 1, 2005, Gann sought, and was granted, an order dismissing with prejudice the personal-injury claims against the Etowah defendants. On December 5, 2005, UAB Hospital moved the Etowah Circuit Court to intervene in the Etowah action. 4 After conducting a hearing, the Etowah Circuit Court denied UAB Hospital’s motion to intervene. UAB Hospital did not appeal that decision. Gann eventually signed a pro tanto settlement agreement and release with the Eto-wah defendants on January 16, 2006 (“the settlement”). It is undisputed that all parties in the Etowah action were aware of the liens of the hospitals at the time of the settlement.

In July 2006, the hospitals filed in the Jefferson Circuit Court (“the trial court”) the present action against the Etowah defendants, alleging that the settlement impaired the hospitals’ statutory hospital liens. On January 17, 2007, the hospitals amended their complaint to include Cory Watson and Gann as defendants. 5 The Gann parties moved the trial court for a summary judgment, arguing that the hospitals had failed to perfect their liens, that the hospitals’ liens did not attach to the proceeds derived from a settlement of a wrongful-death claim, and that the hospitals’ claims were barred by the doctrine of res judicata. 6 The trial court entered a summary judgment in favor of the Gann parties “as to the claims for impairment,” finding that “the parties to the settlement in the Etowah Action intended to attribute their settlement and the funds paid, only to the Gann wrongful death claims.” The *526 trial court denied the Gann parties’ motion for a summary judgment on the issues of res judicata and the hospitals’ alleged failure to perfect their liens. 7 The hospitals now appeal.

Standard of Review

A summary judgment is appropriate only if the trial court finds that there are no genuine issues of material fact and that the movant is entitled to a judgment as a matter of law. Rule 56(e)(3), Ala. R. Civ. P. On appeal, this Court reviews a summary judgment de novo, Ex parte Essary, 992 So.3d 5, 8 (Ala.2007), and affords no presumption of correctness to the trial court’s ruling on questions of law or its conclusion as to the appropriate legal standard to be applied. McCutchen Co. v. Media Gen., Inc., 988 So.2d 998, 1001 (Ala.2008).

Analysis

The trial court stated as follows in its summary-judgment order:

“The Court finds that the Defendants’ Motion for Summary Judgment is due to be GRANTED as to the claims for impairment.

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Cite This Page — Counsel Stack

Bluebook (online)
5 So. 3d 521, 2008 WL 1919904, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-trustees-v-american-resources-insurance-co-ala-2008.