Karen Peoples v. The Medical Protective Company

CourtMissouri Court of Appeals
DecidedMarch 12, 2019
DocketWD81715
StatusPublished

This text of Karen Peoples v. The Medical Protective Company (Karen Peoples v. The Medical Protective Company) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Karen Peoples v. The Medical Protective Company, (Mo. Ct. App. 2019).

Opinion

In the Missouri Court of Appeals Western District

 KAREN PEOPLES,   WD81715 Respondent,  OPINION FILED: v.   March 12, 2019 THE MEDICAL PROTECTIVE  COMPANY,   Appellant.  

Appeal from the Circuit Court of Clay County, Missouri The Honorable Janet L. Sutton, Judge

Before Division Four: Karen King Mitchell, Chief Judge Presiding, Thomas N. Chapman, Judge, and Cory L. Atkins, Visiting Judge

The Medical Protective Company (MedPro) appeals from the judgment of the Circuit

Court of Clay County in favor of Karen Peoples (Peoples) in the sum of $79,922.50, enforcing a

child support lien on the personal injury proceeds previously paid by MedPro to her ex-husband,

Reynold Peoples (Ex-husband). In its sole point on appeal, MedPro asserts that the trial court

erred because Peoples failed to meet the requirements under § 454.518 RSMo1 necessary to

attach a child support lien to the proceeds of the lawsuit that had been filed by Ex-husband and

1 Statutory references are to the Missouri Revised Statutes as supplemented through 2013. because her compliance with the requirements of § 454.519 (respecting liens on negligence or

personal injury demands or rights of action) was not sufficient. Finding no error, we affirm.

Facts and Procedure

Upon dissolution of their marriage in 1998, Ex-husband was ordered to pay Peoples $350

per month for child support, beginning on August 1, 1998. Ex-husband has never made a child

support payment. In 2010, while an inmate in the Jefferson City Correctional Facility, Ex-

husband suffered an arterial embolism, which ultimately resulted in the amputation of his left

leg. On February 22, 2013, Ex-husband filed a medical malpractice lawsuit against Dr. Miguel

Paniagua, alleging negligence in the treatment of the arterial embolism.

Thereafter, Peoples’s attorney, Michael Shipley, mailed a letter to Dr. Paniagua’s

attorney, John Roark, notifying him that Peoples held a child support lien (then in the amount of

$54,967.50) upon any claim for negligence or personal injury that Ex-husband might have

asserted against Dr. Paniagua (the Lien Letter). Shipley attached a copy of Peoples’s “Judgment

Order of Dissolution of Marriage” as well as an affidavit attesting to the amount of Ex-husband’s

child support arrearage. The Lien Letter directed Roark to forward the correspondence to Dr.

Paniagua’s professional liability insurer, MedPro. Shipley sent the Lien Letter pursuant to §

454.519, which provides a means to assert a child support lien on negligence or personal injury

“demands or rights of action” by certified letter sent to the tortfeasor or his attorney.

In September of 2015, Ex-husband’s medical malpractice lawsuit was settled for

$100,000. As part of the release agreement, Ex-husband "covenant[ed] to pay and satisfy any

valid lien or right of reimbursement in full...". MedPro paid the entirety of the settlement

proceeds to Ex-husband and his attorney. MedPro was aware of the Lien Letter, but paid no

portion of the settlement proceeds to Peoples.

2 Peoples petitioned the circuit court to order MedPro to reimburse her for the full amount

of her child support lien against Ex-husband. In its Answer, MedPro argued (as it does on

appeal) that Peoples's lien notice was ineffective because she had not filed the notice of lien in

the court where Ex-husband had filed his personal injury claim, and had thus failed to comply

with the requirements set forth under § 454.518 (which allows a child support obligee to attach a

lien to the proceeds of a lawsuit by filing notice of the lien in the court where the suit is

pending).

The case was submitted on a joint stipulation of facts, depositions of the parties’ counsel,

and trial briefs. The circuit court entered judgment in favor of Peoples, finding that she was

permitted to provide notice of her lien to MedPro under either § 454.518 or § 454.519. The

Court determined that Peoples’s lien was valid and enforceable because she had complied with

the requirements of § 454.519; and entered judgment in her favor and against MedPro in the sum

of $72,922.50, together with statutory interest at 9% per annum. MedPro timely appeals.

Standard of Review

In its sole point on appeal, MedPro argues that the circuit court erred in entering

judgment in favor of Peoples because it misapplied the law in finding that she could assert her

child support lien, after suit had been filed, by complying with the requirements of § 454.519 (by

certified letter to the tortfeasor or counsel) instead of the requirements of § 454.518 (by filing

notice of her lien in the court where the suit had been filed).2

2 In its point relied on, MedPro argues only that the circuit court erred in entering judgment in favor of Peoples because Peoples was required to comply with the provisions of § 454.518. MedPro does not contest the amount of child support arrearage. And while MedPro notes a number of typographical errors contained within the Lien Letter, it does not dispute the letter’s compliance with § 454.519. We confine our analysis to the issue raised in MedPro’s point relied on, which is whether Peoples was required to comply with § 454.518 in order to attach her lien to the settlement proceeds paid to Ex-husband. McClain v. Dep't of Corr., 8 S.W.3d 210, 211 (Mo. App. W.D. 1999) (“Arguments not raised in a point relied on are not presented for review.”).

3 “In an appeal from a court-tried civil case, ‘the trial court’s judgment will be affirmed

unless there is no substantial evidence to support it, it is against the weight of the evidence, or it

erroneously declares or applies the law.’” Hill v. Missouri Dep't of Conservation, 550 S.W.3d

463, 466–67 (Mo. banc 2018) (quoting White v. Dir. of Revenue, 321 S.W.3d 298, 307-08 (Mo.

banc 2010)). “When a case is tried on stipulation of facts, the only issue on appeal is whether the

trial court drew the proper legal conclusions from the stipulated facts.” Hess v. Proffer, 87

S.W.3d 432, 433 (Mo. App. E.D. 2002).

“The circuit court’s determinations of questions of law are subject to de novo review.”

Hill, 550 S.W.3d at 467. Statutory interpretation is a question of law that a reviewing Court

therefore reviews de novo. Spradling v. SSM Health Care St. Louis, 313 S.W.3d 683, 686 (Mo.

banc 2010). “The statutory provisions for enforcement of child support orders must be liberally

construed to comply with the spirit or reason behind them, resolving all reasonable doubts in

favor of the applicability of the law to a particular case.” Spangler v. Spangler, 831 S.W.2d 256,

260 (Mo. App. W.D. 1992)

Analysis

In support of its point on appeal MedPro makes two arguments: 1) that §§ 454.518 and

454.519 are ambiguous because the two statutes conflict, and 2) that because the statutes are

ambiguous we must apply the rules of statutory construction, which favor reading § 454.518 as

the exclusive method for attaching a child support lien to the proceeds of a negligence or

personal injury lawsuit.

Our “primary rule of statutory interpretation is to give effect to legislative intent as

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Karen Peoples v. The Medical Protective Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/karen-peoples-v-the-medical-protective-company-moctapp-2019.