FORD v. GARY

2015 OK CIV APP 63, 353 P.3d 553, 2015 Okla. Civ. App. LEXIS 58, 2015 WL 4469975
CourtCourt of Civil Appeals of Oklahoma
DecidedJune 3, 2015
Docket112,877
StatusPublished
Cited by1 cases

This text of 2015 OK CIV APP 63 (FORD v. GARY) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
FORD v. GARY, 2015 OK CIV APP 63, 353 P.3d 553, 2015 Okla. Civ. App. LEXIS 58, 2015 WL 4469975 (Okla. Ct. App. 2015).

Opinion

LARRY JOPLIN, Judge.

¶ 1 Plaintiff/ Appellant Ross Ford (Plaintiff) seeks review of the trial court's order apportioning the proceeds of Plaintiffs settlement with Defendants/Appellees Peggy Gary and James P. Zink between Plaintiff and Interve-nors/Appellees City of Tulsa and Farmers Insurance Company. In this appeal, Plaintiff challenges the trial court's order as contrary to 36 O.S. § 3636, 85 O.S. § 44, and the precedential pronouncement of Prettyman v. Halliburton Co., 1992 OK 63, 841 P.2d 573.

T2 Plaintiff worked for Intervenor/Appel-lee City of Tulsa (City) as a motorcycle police officer. On March 27, 2007, while acting in the course and scope of his employment, Plaintiff suffered substantial personal injuries in a collision with the vehicle owned and operated by Defendants/Appellees Peggy Gary and James P. Zink (Defendants). Plaintiff sought and received workers' compensation benefits from City for medical treatment, temporary total disability and permanent partial disability in the total amount of $200,534.00.

T8 At the time of the collision, Plaintiff was also covered by the uninsured/underin-sured (UM) provisions of a policy of insurance issued by Intervenor/Appellee Farmers Insurance Company (Farmers). From Farmers, Plaintiff eventually collected $250,000.00 under the uninsured/underin-sured provisions of his Farmers' insurance policy.

T4 In 2009, Plaintiff commenced a negligence action against Defendants in the trial court. City intervened, asserting a right of recoupment under 85 0.8. § 44 to the extent of its payment of workers' compensation benefits to Plaintiff. Farmers intervened, asserting a right of subrogation under 86 0.8. § 3636 to the extent of its UM payments to Plaintiff. Plaintiff subsequently settled his negligence claims against Defendants for the total sum of $250,000.00. 1

4 5 Plaintiff then sought the apportionment of the proceeds of settlement with Defendants between City, Farmers and himself. Plaintiff asserted that the amount of the settlement was less than the total amount of the workers' compensation benefits paid by City and the UM payments by Farmers, and that the settlement consequently constituted a "compromise settlement" as defined in Prettyman. So, said Plaintiff, the trial court should first deduct his litigation expenses and attorney's fees incurred in prosecution of the negligence claims against Defendants, *555 then equitably divide the remainder of the settlement proceeds among City, Farmers and him as directed by § 44.

T6 City asserted the settlement with Defendants exceeded the amounts paid or payable in workers' compensation benefits to Plaintiff, that the settlement was not a "compromise settlement" under § 44(a), and the settlement proceeds should be divided according to the § 44(a) formula set forth in Prettyman. Farmers asserted, under § 8636, its right to subrogation of the full amount of UM payments to Plaintiff.

T7 On consideration of the parties' briefs and arguments, the trial court first held City's claim to recoupment was superior to Farmers' subrogation claim. From the $250,000.00 settlement with Defendants, the trial court then deducted $124,142.00 for Plaintiff's litigation expenses and attorney's fees, and, of the remainder of the settlement proceeds, awarded to City $100,686.37, awarded to Farmers $25,172.00, and awarded nothing to Plaintiff. Plaintiff appeals.

18 In his single proposition, Plaintiff asserts that neither § 44, nor § 8686, recognizes any priority of the right to recoupment of a workers' compensation provider over the subrogation rights of an insurer, that the right of recoupment and right to subrogation stand on equal footing, and the trial court erred in according City's recoupment claim superior to Farmer's subrogation claim. In support of this position, Plaintiff relies on Mustain v. U.S. Fidelity & Guar. Co., 1996 OK 98, 925 P.2d 533, for the proposition that there is "no general rule for determining primary, secondary, and tertiary priorities among multiple UM insurers and distributing the burden of loss," and "insurers ... [may] press for adjustment or apportionment of the indemnity among themselves as required by the law of insurance [and] a judicial determination of the primary, secondary, and tertiary priority among insurers pursuant to the applicable UM insurance policies." 1996 OK 98, ¶¶ 9, 10, 925 P.2d at 536. Accordingly, says Plaintiff, because a workers' compensation payor and a UM payor enjoy no priority one over the other pursuant to § 44 and § 3636, and because there are no set rules for determining the priority among multiple payors, Plaintiff again argues that, because the total amount received in third-party settlement proceeds was less than the total amount received in workers' compensation and UM payments, the trial court should have affected an equitable division of the settlement proceeds after deduction of attorney's fees and expenses.

¶ 9 This case requires the construction and application of 36 O.S. § 3686 and 85 O.S. § 44, two statutory provisions arguably touching on the same subject. Questions of statutory construction present questions of law that we review de novo and over which we exercise plenary, independent and non-deferential authority. Stump v. Cheek, 2007 OK 97, ¶ 9, 179 P.3d 606, 609. (Emphasis original.) (Footnote omitted.) "[PJrovisions dealing with the same subject will be harmonized to give effect to both." Glasco v. State ex rel. Oklahoma Dept. of Corrections, 2008 OK 65, ¶ 17, 188 P.3d 177, 184. (Citations omitted.) "If there is a conflict between two statutes on the same subject and the language in one statute is general while the language in the other is specific, the specific statute will control over the general statute." Id.

¶ 10 Section 44(a) of title 85, 0.S8., mandates the apportionment of third-party settlement proceeds to a claimant and grants the payor of workers' compensation benefits the right of "statutory pro tanto recoup ment." ACCOSIF v. American States Ins. Co., 2000 OK 21, ¶ 2, 1 P.3d 987, 990. (Emphasis original.) "In an action for reimbursement under § 44(a), neither the workers' compensation employer nor its insurance carrier pursues the party responsible for the loss, as in a subrogation action." Frank's Tong Service v. Lara, 2013 OK CIV APP 22, ¶ 19, 298 P.3d 539, 543. "Rather, the. employer or its insurance carrier enforces its right of reimbursement against the claimant, who, as the party injured, has recovered from the party who ought to bear the loss, ie., the person causing his injuries, and who is now holding funds, which in equity, should be paid back to the health care provider." Td. ~

¶ 11 Section 3636(F) of title 36, O.S., grants to the payor of UM benefits the right *556 of subrogation to recover to the extent of UM payments made to its insured. 2 "Subro-gation is a derivative concept, and 'allows an insurer who has paid coverage to stand in the shoes of the insured and pursue recovery from a third party primarily responsible for the insured's loss which the insurer both insured and reimbursed, thus 'plac[ing] the entire burden on the party ultimately responsible for the loss and who should pay it.'" Frank's Tong Service, 2013 OK CIV APP 22, ¶ 16, 298 P.3d at 543.

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FORD v. GARY
2015 OK CIV APP 63 (Court of Civil Appeals of Oklahoma, 2015)

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Bluebook (online)
2015 OK CIV APP 63, 353 P.3d 553, 2015 Okla. Civ. App. LEXIS 58, 2015 WL 4469975, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ford-v-gary-oklacivapp-2015.