Elam v. Medical Assurance of West Virginia, Inc.

607 S.E.2d 788, 216 W. Va. 459, 2004 W. Va. LEXIS 191
CourtWest Virginia Supreme Court
DecidedDecember 2, 2004
DocketNo. 31656
StatusPublished

This text of 607 S.E.2d 788 (Elam v. Medical Assurance of West Virginia, Inc.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elam v. Medical Assurance of West Virginia, Inc., 607 S.E.2d 788, 216 W. Va. 459, 2004 W. Va. LEXIS 191 (W. Va. 2004).

Opinion

PER CURIAM.

This is an appeal by Plaintiffs Elenora P. Elam as conservator and guardian of Brenda Kay Elam, a protected person; William J. Elam, the husband of Brenda Kay Elam, individually and as next friend of their children, William H., Ashley A. and Brandon G. Elam; and Justan J. Elam (hereinafter “Appellants”), from an order entered February 19, 2003, in the Circuit Court of Raleigh County, West Virginia. In that order, the circuit court granted the motions to dismiss filed by Medical Assurance of West Virginia, Inc. and Health Care Indemnity, Inc. For the reasons set forth below, we affirm the circuit court’s order.

I.

FACTS

On or about June 14, 2001, Brenda Elam underwent ventral hernia repair surgery at Raleigh General Hospital. Appellants allege that upon conclusion of the surgery, Brenda Elam was prematurely and negligently extu-bated and, as a result, suffered severe anoxic brain injury. According to Appellants, she was rendered totally and permanently disabled and currently resides in a nursing home where she receives constant care.

On February 28, 2002, Appellants filed a Complaint against various health care providers alleging medical professional negligence under the provisions of W.Va.Code § 55-7B-1, et seq., The West Virginia Medical Professional Liability Act.

Before any responsive pleading was filed, Appellants filed an Amended Complaint, on November 14, 2002, naming the defendant health care providers’ insurers, Medical Assurance of West Virginia, Inc. (hereinafter “Appellee”) and Health Care Indemnity, Inc., as additional defendants.1 In Counts XIII and IX of the Amended Complaint, Appellants alleged that these parties “engaged in unfair trade practices ... with such frequency as to constitute a general business practice in connection with claims for insurance proceeds” in violation of, inter alia, W.Va. Code § 33-11-3, and alleged further that “[a]s a direct and proximate result of the[ir] unfair claims settlement practices and unlawful acts, ... [Appellants] suffered a delay in the settlement of their claim against [the] insured [health care providers] -”2 According to Appellants, the defendant insurers were obligated to undertake an investigation of Appellants’ medical professional liability claims when the defendant insurers were given notice of Appellants’ claims in June 2001, see W.Va.Code § 33-ll-4(9)(b); it was when settlement negotiations proved unsuccessful on or about November 6, 2002 that Appellants filed their Amended Complaint to assert violations of the Unfair Trade Practices Act (hereinafter “bad faith claims”). See Response to the Motions to Dismiss of Defendants, Medical Assurance of West Virginia and Health Care Indemnity, Inc., filed January 17, 2003.

On December 23, 2002 and December 30, 2002, respectively, Appellee and Health Care Indemnity filed motions to dismiss and to bifurcate and stay the bad faith claims.3 In support of its motion to dismiss, Appellee argued the Appellants’ claim of bad faith was prohibited under W.Va.Code § 55-7B-5, as amended in 2002; it was Appellee’s eonten[462]*462tion the amended version of W.Va.Code § 55-7B-5 became effective upon date of passage, December 1, 2001. Appellee argued that because the Amended Complaint was not filed until November 14, 2002, the bad faith claim included therein was barred. In the alternative, Appellee maintained that if the circuit court found that the effective date of the amendment was March 1, 2002, rather than December 1, 2001, the bad faith claim did not relate back to the filing of the original complaint on February 28, 2002, see W.Va. R. Civ. P. 15, thereby barring the bad faith claim under W.Va.Code § 55-7B-5.

A hearing on the motions to dismiss was conducted on January 21, 2003 and, by order entered February 19, 2003, the circuit court concluded the following: (1) pursuant to W.Va.Code § 55-7B-10(b) (2002),4 the effective date of W.Va.Code § 55-7B-5(b) was March 1, 2002, one day after Appellants’ original complaint was filed; and (2) the bad faith claims set forth in the Amended Complaint do not relate back to the filing of the original complaint under W.Va. R. Civ. P. 15(c). It is from the circuit court’s February 19, 2003 order dismissing their Amended Complaint that Appellants now appeal.

II.

STANDARD OF REVIEW

It is well settled that this Court reviews de novo a circuit court’s order granting a motion to dismiss: “ ‘ “Appellate review of a circuit court’s order granting a motion to dismiss a complaint is de novo.” Syllabus Point 2, State ex rel. McGraw v. Scott Runyan Pontiac-Buick, 194 W.Va. 770, 461 S.E.2d 516 (1995).’ Syl. pt. 1, Bradshaw v. Soulsby, 210 W.Va. 682, 558 S.E.2d 681 (2001).” Syl. pt. 1, King v. Heffernan, 214 W.Va. 835, 591 S.E.2d 761 (2003). Furthermore, this Court has previously held that “‘[w]here the issue on an appeal from the circuit court is clearly a question of law or involving an interpretation of a statute, we apply a de novo standard of review.’ Syl. Pt. 1, Chrystal R.M. v. Charlie A.L., 194 W.Va. 138, 459 S.E.2d 415 (1995).” Syl. pt. 2, Dunlap v. Friedman’s, Inc., 213 W.Va. 394, 582 S.E.2d 841 (2003).

III.

DISCUSSION

At issue in this appeal is whether W.Va. Code § 55-7B-5, as amended in 2002, bars Appellants’ bad faith claim against Appellee. The relevant portion of W.Va.Code § 55-7B-5 (2002) provides:

(b) Notwithstanding any other provision of law, absent privity of contract, no plaintiff who files a medical professional liability action against a health care provider may file an independent cause of action against any insurer of the health care provider alleging the insurer has violated the provisions of subdivision (9), section four [§ 33-11-4], article eleven, chapter thirty-three of this code. Insofar as the provisions of section three [§ 33-11-3], article eleven, chapter thirty-three of this code prohibit the conduct defined in subdivision (9), section four [§ 33-11-4], article eleven, chapter thirty-three of this code, no plaintiff who files a medical professional liability action against a health care provider may file an independent cause of action against any insurer of the health care provider alleging the insurer has violated the provisions of said section three.

[463]*463Appellants contend that because they filed a medical professional liability action against the defendant health care providers (Appel-lee’s insured) prior to March 1, 2002, the effective- date of the foregoing amendment, the amendment does not apply. We are not persuaded by Appellants’ construction of the statutory language.

To the contrary, this Court discerns no basis for construing the statute in any other way than on the basis of its clear language.

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472 S.E.2d 411 (West Virginia Supreme Court, 1996)
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Bluebook (online)
607 S.E.2d 788, 216 W. Va. 459, 2004 W. Va. LEXIS 191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elam-v-medical-assurance-of-west-virginia-inc-wva-2004.