McCollum v. Baylor University Medical Center

697 S.W.2d 22, 1985 Tex. App. LEXIS 7157
CourtCourt of Appeals of Texas
DecidedJuly 18, 1985
Docket05-84-00665-CV
StatusPublished
Cited by11 cases

This text of 697 S.W.2d 22 (McCollum v. Baylor University Medical Center) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCollum v. Baylor University Medical Center, 697 S.W.2d 22, 1985 Tex. App. LEXIS 7157 (Tex. Ct. App. 1985).

Opinion

GUILLOT, Justice.

This is a consolidated appeal from two judgments, a judgment in a workers’ compensation case and a declaratory judgment. McCollum and Montfort appeal with six points of error pertaining to the declaratory judgment, which concerns only Baylor, and two points pertaining to the compensation case, which concerns only Fidelity. For the reasons below, we reverse and remand the judgment in the compensation case; in the declaratory judgment ease, we affirm the judgment as to Montfort and reverse and remand the judgment as to McCollum pending the outcome of the compensation case as directed in this opinion.

THE WORKERS’ COMPENSATION CASE

The litigation which spawned these appeals began when McCollum was shot while allegedly in the course and scope of his employment. He was treated for his injuries by Baylor Hospital. At the outset of treatment, he signed a contract in which he agreed to personally pay Baylor for his treatment plus interest and attorney’s fees for its collection. He filed his workers’ compensation suit against Fidelity for his alleged on-the-job injury. Baylor intervened for its hospital bill. Fidelity denied coverage asserting, among other things, that the injury did not occur in the course and scope of employment. A judgment for McCollum and Baylor was reversed by this court because McCollum failed to prove his average weekly wage rate. Fidelity & Casualty Company v. McCollum, 656 S.W.2d 527 (Tex.App.-Dallas 1983, writ ref’d n.r.e.).

While the compensation case was pending, McCollum sued Montfort as a third party tortfeasor. Baylor did not intervene *24 in that suit. McCollum settled the suit against Montfort. Then McCollum filed a declaratory judgment action against Baylor alleging that he was not liable for Baylor’s bill. Baylor counterclaimed alleging that both McCollum and Montfort were liable under the Hospital Lien Act for McCol-lum’s hospital bill. The trial court agreed and rendered a declaratory judgment against McCollum and Montfort jointly and severally for the hospital bill and against McCollum for contractual interest and attorney’s fees.

After judgment was rendered for Baylor in the declaratory judgment case, Fidelity filed a motion for summary judgment in the compensation case. It alleged it was entitled to judgment as a matter of law on two grounds: (1) the settlement received by McCollum from Montfort exceeded any amount Fidelity might be liable for even if McCollum prevailed; and (2) in the declaratory judgment action, the trial court had ruled that McCollum and Montfort — not Fidelity — must pay the hospital bill out of the settlement proceeds. Agreeing with Fidelity, the trial court granted the motion and held that McCollum and Baylor take nothing from Fidelity.

Only McCollum appealed from the trial court’s judgment in the compensation case. McCollum asserts two points of error concerning the compensation case. He contends, first, that there was no evidence to support the summary judgment and, second, that the trial court erred in granting judgment for Fidelity because the subrogation rights of McCollum and Fidelity under the Workers’ Compensation Act (“the Act”) had not been determined and an attorney’s fee claim hinged thereon.

With respect to the no evidence point, the appellate record reveals that there was no summary judgment evidence to support the motion. The trial court had before it Fidelity’s pleadings and unsworn motion and its declaratory judgment in the companion case. The motion alleged that McCollum’s settlement of the third party action against Montfort exceeded more than the total amount of compensation and medical benefits for which Fidelity would ever be liable. We hold that Fidelity’s un-sworn motion is not summary judgment evidence to support its summary judgment. Barrow v. Jack’s Catfish Inn, 641 S.W.2d 624, 625 (Tex.App.-Corpus Christi 1982, no writ); United Parcel Service v. Helen of Troy Corporation, 536 S.W.2d 415, 417 (Tex.Civ.App.-El Paso 1976, no writ). Absent proper summary judgment evidence on the amount of future medical expenses, we cannot hold that there is no genuine issue of fact as to the adequacy of the Montfort settlement.

McCollum, in his second ground of error, is correct in contending that the trial court erred in rendering summary judgment because McCollum’s right to recover attorney’s fees from Fidelity, based upon the benefit accruing to Fidelity for the prosecution of the third party action against Montfort, had not been determined. In the usual course of events, an injured worker tries his suit for compensation before he proceeds against any third party for common law damages. The compensation carrier then intervenes in the third party action, and from the carrier’s subro-gation recovery, the attorneys for the worker and carrier are awarded fees based on the benefit accruing to the association as a result of each attorney’s service. The Act provides:

If the association obtains an attorney to actively represent its interest and if the attorney actively participates in obtaining a recovery, the court shall award and apportion an attorney’s fee allowable out of the association’s subrogation recovery between such attorneys taking into account the benefit accruing to the association as a result of each attorney’s service, the aggregate of such fees not to exceed thirty-three and one-third per cent (33⅛%) of the subrogated interest.

TEX.REV.CIV.STAT.ANN. art. 8307, § 6a (Vernon Supp.1985). Because the trial court did not know the full extent of the amount of Fidelity’s liability, if any, under the Act, it could not determine the “benefit accruing” to Fidelity as a result of McCol- *25 lum’s settlement with Montfort. Therefore, it could not award attorney’s fees for the service of McCollum’s attorney as directed by the statute. Cf. Chambers v. T.E.I.A., 693 S.W.2d 648 (Tex.App.-Dallas, 1985, no writ).

We hold that, even though this case did not follow the usual course, Fidelity is still liable under the Act for the benefit conferred upon it by McCollum’s attorney, if any. We must keep in mind the purpose of the Act, and we must liberally construe it. Texas Employers Insurance Association v. Holmes, 145 Tex. 158, 196 S.W.2d 390, 394 (1946). The principal purpose of the Act is the protection of the employee. Smith v. Stephenson, 641 S.W.2d 900, 903 (Tex.1982). If Fidelity had already paid compensation and medical benefits to McCollum, it would be entitled to reimbursement from the settlement proceeds between Montfort and McCollum. In turn, McCollum would be entitled to an award of attorney’s fees out of Fidelity’s reimbursement. Consequently, the issue of Fidelity’s liability under the Act must be tried in order to determine if Fidelity was benefited by the settlement.

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697 S.W.2d 22, 1985 Tex. App. LEXIS 7157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccollum-v-baylor-university-medical-center-texapp-1985.