Johnson v. St. Paul Fire & Marine Insurance Co.

680 So. 2d 278, 1996 Ala. Civ. App. LEXIS 317, 1996 WL 202675
Court of Civil Appeals of Alabama·Decided April 26, 1996·No. 2941287·Published

Opinion

RICHARD L. HOLMES, Retired Appellate Judge.

Billy F. Johnson filed a multi-count complaint against St. Paul Fire and Marine Insurance Company (St. Paul) and Baptist Medical Center-Montclair (BMCM). •

Johnson alleged in his complaint that St. Paul, the workers’ compensation carrier for his employer, had failed to pay medical and surgical expenses arising from his on-the-job injury. Count One of the complaint alleged bad faith on the part of St. Paul in refusing to pay these medical expenses. Count Two of the complaint alleged intentional infliction of mental distress by outrageous conduct on the part of St. Paul.

Johnson further alleged in his complaint that BMCM, one of the medical providers which provided treatment for his on-the-job injury, had caused him to suffer damages because of its efforts to collect monies owed to it for the medical services provided to Johnson. Count Three alleged that BMCM was guilty of outrageous conduct and wrongful garnishment. Count Four alleged that BMCM was guilty of malicious prosecution.

St. Paul filed a summary judgment motion, which was granted in its favor. Thereafter, BMCM filed a summary judgment motion, which was granted in its favor.

Johnson appeals. This case is before this court pursuant to Ala.Code 1975, § 12-2-7(6).

Johnson contends that the trial court committed reversible error when it granted the summary judgment motions in favor of St. Paul and BMCM.

Our review of the record reveals the following pertinent facts: Johnson suffered an on-the-job injury in June 1987. This injury rendered Johnson permanently and totally disabled. St. Paul was the workers’ compensation carrier for Johnson’s employer.

In August 1992 BMCM rendered medical services to Johnson for this on-the-job injury, and the bill was submitted to St. Paul for payment. St. Paul paid only a small portion of the bill, leaving an unpaid balance. In December 1992 BMCM turned the unpaid balance over to the law firm that handled its collections for further collection activity.

Johnson settled his workers’ compensation claim, and the court approved a settlement petition and order on March 8,1993. Under the terms of this settlement petition, future medicals and vocational/rehabilitation services were left open. On May 17, 1993, the court issued an amended order to include “language to better define [Johnson’s] right to future medical benefits consistent with the Workers’ Compensation Act of Alabama.”

In October 1993 BMCM filed suit against Johnson in an attempt to collect the unpaid balance for the August 1992 bill. In November 1993 the court entered a default judgment against Johnson for $469.93, plus interest and costs.

In December 1993 BMCM issued a process of garnishment against Johnson’s checking account at AmSouth'Bank in the amount of $519.32. AmSouth notified Johnson of the garnishment. Johnson contacted his attorneys, who filed a motion to set aside the judgment and the process of garnishment. When St. Paul learned of the judgment and garnishment against Johnson, it paid the unpaid balance on the August 1992 bill. By agreement of the parties, the court set aside the judgment against Johnson and released the garnishment on January 27,1994.

Thereafter, Johnson filed the present action against St. Paul and BMCM.

First, we will consider whether the trial court committed reversible error when it granted the summary judgment motion in favor of St. Paul. In his brief on appeal, Johnson states that he does not pursue the outrageous conduct count against St. Paul. Therefore, we will not consider this an issue on appeal.

In Count One of his complaint, Johnson alleged the following, in pertinent part:

[280]*280“that [St. Paul], in violation of the settlement and petition, [has] refused to pay all of [Johnson’s] medical and surgical expenses resulting from his said on-the-job injury and ... that there are outstanding bills and expenses ... which [St. Paul has] not paid.
“... that [St. Paul is] not justified in refusing to pay the requested medical and surgical expenses and ... that [St. Paul has] wilfully and contumaciously refused to provide the expenses for the medical care necessarily and directly related to his on-the-job injury.
“[St. Paul’s] refusal to pay [Johnson’s] medical expenses has been done in bad faith.”

Our supreme court stated the following in Stewart v. Matthews Industries, Inc., 644 So.2d 915, 918 (Ala.1994):

“This court has held that a tort claim against a workers’ compensation carrier alleging a bad faith failure to pay an insurance claim is barred by the exclusivity provision of the Workers’ Compensation Act.”

This court is bound by the decisions of our supreme court. Ala.Code 1975, § 12-3-16; C & S Construction Co. v. Martin, 420 So.2d 788 (Ala.Civ.App.1982).

In light of the above, the trial court did not, in this instance, commit reversible error when it granted the summary judgment motion in favor of St. Paul. Consequently, this portion of the trial court’s judgment is affirmed.

Now we will consider the issue of whether the trial court committed reversible error when it granted the summary judgment motion in favor of BMCM.

As previously noted, Count Three of Johnson’s complaint alleged that BMCM was guilty of outrageous conduct and wrongful garnishment. Count Four of the complaint alleged that BMCM was guilty of malicious prosecution.

Our review of the record reveals the following: It is undisputed that BMCM was aware that the August 1992 bill was covered by workers’ compensation. Mitzi Winters, the Director of Patient Business Services for BMCM, testified in her deposition that BMCM referred the past-due account to one of its in-house collectors on December 2, 1992. On December 14, 1992, BMCM forwarded the account to the law firm that handled collections on past-due accounts for BMCM.

The law firm assigned the account to Linda Lewis, one of the legal assistants employed by the law firm. Lewis sent a December 18,1992, letter to Johnson, informing him that his account was past due. The letter advised Johnson that “[i]f this balance is part of a workmen’s compensation claim, please contact this office immediately with the name and address of your employer.”

Lewis stated the following in her affidavit: When she spoke with Johnson on January 5, 1993, he informed her that his medical bills were covered by workers’ compensation and that his former employer was no longer in business. Johnson referred her to his attorney.

Lewis further stated that she was finally able to speak with Johnson’s attorney on May 17, 1993. Johnson’s attorney requested that Lewis send him a letter making demand for payment of the unpaid balance and that he would forward the letter to St. Paul. The law firm sent the requested letter to Johnson’s attorney on May 18, 1993, and Lewis sent a follow-up letter on July 6,1993.

Lewis’s affidavit also stated that on October 12, 1993, when no further response had been received from Johnson’s attorney, BMCM filed against Johnson, seeking a judgment for the unpaid balance. The court entered a judgment against Johnson for the unpaid balance, and BMCM garnished Johnson’s bank account at AmSouth Bank.

Lewis also stated the following in her affidavit:

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Johnson v. St. Paul Fire & Marine Insurance Co., 680 So. 2d 278, 1996 Ala. Civ. App. LEXIS 317, 1996 WL 202675 (Ala. Ct. App. 1996).

680 So. 2d 278 (Johnson v. St. Paul Fire & Marine Insurance Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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