Bossier Orthopaedic Clinic v. Durham

747 So. 2d 731, 1999 La. App. LEXIS 3535, 1999 WL 1256211
CourtLouisiana Court of Appeal
DecidedDecember 15, 1999
Docket32,543-CA
StatusPublished
Cited by7 cases

This text of 747 So. 2d 731 (Bossier Orthopaedic Clinic v. Durham) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bossier Orthopaedic Clinic v. Durham, 747 So. 2d 731, 1999 La. App. LEXIS 3535, 1999 WL 1256211 (La. Ct. App. 1999).

Opinion

747 So.2d 731 (1999)

BOSSIER ORTHOPAEDIC CLINIC, et al., Plaintiff-Appellee,
v.
Kevin DURHAM, et al., Defendant-Appellant.

No. 32,543-CA.

Court of Appeal of Louisiana, Second Circuit.

December 15, 1999.

*733 Stephen T. Collins, Shreveport, Mark D. Frederick, Zachary, William O. Hunter, III, Shreveport, Counsel for Appellant.

Jack M. Bailey, Jr., Shreveport, Counsel for Appellee.

Before WILLIAMS, GASKINS and PEATROSS, JJ.

WILLIAMS, Judge.

The defendants,[1] Kevin Durham and his legal representative, Norman R. Gordon & Associates, appeal the trial court's judgment in favor of plaintiffs,[2] Bossier Orthopaedic Clinic, A Medical Corporation ("Bossier Orthopaedic") and Michael T. Acurio, M.D., finding Norman R. Gordon, d/b/a Norman R. Gordon & Associates, and Kevin Durham liable for the balance due on medical services provided for Durham. The plaintiffs answered the appeal arguing that the trial court erred in finding that they were not entitled to recover damages for attorney fees incurred in collecting the debt. For the following reasons, we affirm in part and reverse in part.

FACTS AND PROCEDURAL HISTORY

The defendant, Kevin Durham, was involved in a motor vehicle accident on October 28, 1994. Dr. Michael T. Acurio, an orthopaedist with the Bossier Orthopaedic Clinic, treated Durham for injuries he sustained as a result of the accident.

Durham signed a payment agreement in which he agreed to pay Bossier Orthopaedic $100 per month toward the balance of his medical account and any reasonable collection costs or attorney fees incurred in collecting a delinquent account. The defendant also signed a document pertaining to his medical records and a doctor's lien. The lien authorized Durham's attorney to withhold funds from any settlement to which he might be entitled in order to pay any outstanding fees owed to Dr. Acurio.

On December 20, 1994, attorney Stephen T. Collins forwarded a letter to the plaintiffs advising them that he would be representing Durham regarding his motor vehicle accident and that his firm, Norman R. Gordon & Associates, would "send your office $100.00 per month to be applied to Mr. Durham's account until the case is completed by settlement or judgment."

Sandra K. Hand, a collection agent with Bossier Orthopaedic, testified that prior to receiving the letter, she had telephoned Collins and an agreement was reached *734 whereby Collins's firm would pay $100 per month towards the balance of Durham's medical account. In consideration for the monthly payment, the plaintiffs agreed not to send the account to collections or charge interest on the balance. Hand testified that it was her understanding that the plaintiffs would receive $100 per month until there was a settlement, at which time, Collins's firm would pay the remaining balance in full.

Hand further testified that she telephoned Collins again on May 12, 1995 to inform him that the defendant's account was delinquent. According to Hand, Collins informed her that he would "take care of it." The record reflects that by May 19, 1995, the defendants had made two payments totaling $600, an amount equal to six monthly payments of $100. After the plaintiffs instituted their suit, the defendants made another payment in the amount of $1,300, leaving a balance of $14,282.00.

Collins testified that Durham received two insurance settlements, one in the amount of $100,000.00 and another totaling $15,000.00. According to Collins, his firm reduced its contingency fee from 40% and received 25% of the proceeds from the first settlement. He further testified that, after deducting attorney fees and other expenses, the firm deposited the remaining sums in an escrow account. Collins's firm received $4,139.20 in attorney fees from the settlement totaling $15,000.00. According to Collins, on May 18, 1995, his firm disbursed settlement proceeds to Durham totaling $42,465.77. Collins testified that when Durham received these proceeds, he was informed that he had an outstanding balance of $27,324 in medical bills and Durham signed the disbursement form accepting full responsibility for payment of the remaining medical bills.

Several additional exchanges occurred concerning the delinquent account before the plaintiffs filed suit on February 20, 1996 for collection of a debt on an open account, enforcement of a lien in favor of a physician and breach of contract. The defendants filed a counterclaim and a motion for summary judgment, which was denied.

The trial court found Norman R. Gordon & Associates liable for Durham's medical debt and ordered the firm to pay the balance of the account, including interest. The trial court denied the plaintiffs' claim for attorney fees.

The defendants filed a motion for new trial and an exception of no right of action. The defendants argued that, since Bossier Orthopaedic had merged with Orthopaedic Specialists of Louisiana, A Professional Medical Corporation ("Orthopaedic Specialists of Louisiana"), to form a new entity, Dr. Acurio and Bossier Orthopaedic had no right to proceed as plaintiffs in this action. The trial court denied the defendants' motion for a new trial and amended its judgment to include Orthopaedic Specialists of Louisiana as a plaintiff.

The defendants appeal. The plaintiffs have answered the appeal alleging that the trial court erred in failing to award attorney fees.

DISCUSSION

Assignment of Error No. 1

By their first assignment of error, the defendants argue that, as a result of the merger with Bossier Orthopaedic Clinic, only Orthopaedic Specialists of Louisiana, as a corporate entity, has the right to collect the debt incurred by or on behalf of Kevin Durham. The defendants argue that Dr. Acurio was not authorized to proceed in collection proceedings on behalf of Orthopaedic Specialists of Louisiana.

The exception of no right of action is appropriate when the plaintiff does not have an interest in the subject matter of the suit or legal capacity to proceed with the suit in a particular case. LSA-C.C.P. art. 927; Gorum v. Louisiana Hospital Association Employee Benefit Trust, 95-468 (La.App. 3rd Cir. 11/2/95), 664 So.2d *735 662; Touzet v. V.S.M. Seafood Services, Inc., 96-0225 (La.App. 4th Cir.3/27/96), 672 So.2d 1011. When considering the exception, the court must ask whether the plaintiff belongs to a particular class for which the law grants a remedy for a particular grievance or whether the plaintiff has an interest in judicially enforcing the right asserted. Touzet v. V.S.M. Seafood Services, Inc., supra.

When a plaintiff sues as a legal representative, his authority or qualification is presumed unless challenged by the defendant by the timely filing of the exception. LSA-C.C.P. art. 700; Swain For and on Behalf of Estate of Swain v. Life Insurance Company of Louisiana, 537 So.2d 1297 (La.App. 2d Cir.1989). The peremptory exception may be pleaded at any stage of the proceeding in the trial court prior to a submission of the case for a decision. LSA-C.C.P. art. 928.

Here, the defendants allege in their exception that Dr. Acurio did not have an interest in the claim. However, the defendants filed their peremptory exception after the trial court rendered judgment. Therefore, pursuant to LSA-C.C.P. art. 928, their objection to Dr. Acurio representing Orthopaedic Specialists of Louisiana was not timely. Even if defendants' exception had been timely, the evidence does not support their argument.

Dr.

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Cite This Page — Counsel Stack

Bluebook (online)
747 So. 2d 731, 1999 La. App. LEXIS 3535, 1999 WL 1256211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bossier-orthopaedic-clinic-v-durham-lactapp-1999.