Miller v. Citizens Insurance

794 N.W.2d 622, 288 Mich. App. 424
CourtMichigan Court of Appeals
DecidedMay 13, 2010
DocketDocket No. 290522
StatusPublished
Cited by14 cases

This text of 794 N.W.2d 622 (Miller v. Citizens Insurance) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Citizens Insurance, 794 N.W.2d 622, 288 Mich. App. 424 (Mich. Ct. App. 2010).

Opinion

CAVANAGH, EJ.

The Detroit Medical Center (DMC), an aggrieved party, appeals as of right an order granting attorney fees to plaintiffs attorneys that had the effect of proportionately reducing the amount the DMC recovered for billed services in this no-fault motor vehicle insurance case. We affirm. Flaintiff cross-appeals, challenging the DMC’s right to participate in this matter, as well as the amount the DMC was allocated from the settlement proceeds for services it provided. We affirm.

On December 17, 2007, plaintiff Gail Miller, as guardian and conservator for Ryan Scott Miller, a mentally and physically incapacitated adult, filed a lawsuit against defendants, Citizens Insurance Company and April Buerkel, an employee of Citizens. The complaint alleged that on September 5, 2007, Ryan was in a rollover motor vehicle accident from which he sustained severe and permanent injuries, including a spinal cord injury that rendered him a paraplegic, a severe closed head injury, multiple facial fractures, multiple broken ribs, and multiple fractures of vertebrae. The vehicle involved in the accident was owned by Ryan’s father [427]*427and was insured by Citizens; thus, an application for no-fault benefits dated September 13, 2007, was submitted to Citizens on Ryan’s behalf. The application indicated that Ryan had no other medical insurance coverage. On November 7, 2007, Citizens responded to the application for benefits by rescinding the insurance policy, claiming that in May 2002, a representation was made that the vehicle at issue would not be used for business purposes and that the representation was false. By letter dated November 9, 2007, Citizens denied Ryan’s application for no-fault benefits.

The complaint was filed after the failed efforts by plaintiffs attorneys to convince Citizens that Ryan — an innocent third party — was entitled to no-fault benefits. Count I was a breach of contract claim, count II was a common-law fraud and misrepresentation claim, count III was a fraudulent concealment claim, count IV was a silent fraud claim, count V alleged a violation of the Consumer Protection Act, MCL 445.901 et seq., count VI was an estoppel claim, count VII alleged a violation of the Uniform Trade Practices Act, MCL 500.2001 et seq., count VIII was a conspiracy and fraud claim, and count IX requested exemplary damages.

On January 11, 2008, plaintiff filed a motion for a preliminary injunction under MCR 3.310(A), requesting that Citizens be ordered “to immediately begin payment of Plaintiffs no-fault benefits for his care, rehabilitation and recovery that are reasonable, necessary and related to this automobile accident.” Attached to the motion was a letter dated January 9, 2008, authored by a nurse case manager from Alpha Case Management who had been appointed on Ryan’s behalf, which detailed the severity of Ryan’s injuries as well as his future, extensive medical needs. Because of the extent of Ryan’s mental and physical injuries, place[428]*428ment in residential rehabilitation was discussed but, the letter indicated, such placement “will not be possible if he does not have insurance coverage as no appropriate TBI/spinal cord injury facility will admit Ryan -without proof of payment.” Citizens opposed plaintiffs motion.

On January 22, 2008, a stipulated order of dismissal pursuant to settlement was entered by the trial court. The order indicated that jurisdiction was retained only “for the sole limited purpose of settlement of any attorney liens for personal protection benefits accrued to date.” The order also provided that count I was dismissed without prejudice with regard to the personal protection insurance benefits payable as alleged in count I, but with prejudice with regard to interest and attorney fees owing under count I. Counts II through IX were dismissed with prejudice. Citizens was ordered to pay all allowable expenses accrued between September 5,2007, and January 22,2008, as well as those personal protection insurance benefits that followed to the extent required by the no-fault act. With regard to plaintiff’s attorneys’ entitlement to an attorney hen, the court ordered plaintiff to provide notice to providers to appear at a scheduled conference to settle the attorney liens.

On February 11, 2008, the conference was held, and legal representation for the DMC was present. The DMC argued that it had not received notice of the litigation until after it was settled. The trial court ordered an evidentiary hearing to be conducted with regard to the issue. The court further ordered Citizens to make payment to the other providers and that those providers were subject to an attorney lien of 1h of their invoices.

On February 15, 2008, the DMC moved to intervene as a plaintiff pursuant to MCR 2.209. The DMC averred [429]*429that it had provided medical, surgical, and rehabilitative services to Ryan at a cost of approximately $150,651 from December 4, 2007, through January 25, 2008. The DMC averred that plaintiffs attorneys were seeking from the DMC a payment of V3 of its charges as attorney fees, but the DMC had no such agreement with plaintiffs attorneys. The DMC also contended that “Plaintiffs counsel did not provide it with appropriate notice of his representation, did not advise it of his intention to pursue Intervening Plaintiffs interests and claim a one-third fee, and did not provide it an opportunity to retain its own counsel.” On February 19, 2008, plaintiff responded to the DMC’s motion to intervene, primarily arguing that there was no pending action in which to intervene — the matter had been settled by order entered on January 22, 2008. Following a hearing, the trial court denied the motion to intervene.

On March 14, 2008, an evidentiary hearing was conducted. The only witness was Jane Ruppman, the director of patient business services at Rehabilitation Institute of Michigan (RIM), the DMC hospital where Ryan received medical treatment. On direct examination, she testified that patients or third-party payers do not receive a bill for services while still in the hospital, but only after discharge. With regard to Ryan, she had only spoken with an attorney for plaintiff on January 22, 2008, when he called to advise that he had secured insurance proceeds from Citizens and sought V3 of the $150,000 outstanding balance as his fee. That was her first contact with plaintiffs attorneys. She then received a letter from plaintiffs attorneys dated January 24, 2008, regarding their legal representation and claim for % of the bill as their fees. Ryan was discharged on January 25, 2008. On February 12, 2008, a bill was submitted to Citizens, and payment was denied.

[430]*430On cross-examination, Ruppman testified that she held a supervisory position and had no personal involvement with Ryan’s billing or anything else related to his hospitalization. She testified that when Ryan was admitted, a lien was not sought. She knew that if Ryan were eligible for Medicaid, Medicaid would pay approximately $1,324 a day. The actual bill for Ryan’s care was $150,000 — which is about $3,000 a day for 50 days. If Ryan were not eligible for insurance coverage or Medicaid, he would be billed, and liable, for RIM’s medical services. On the back of the Medicaid application, which was signed on the day Ryan was admitted, someone had written the names and telephone numbers of Ryan’s two attorneys. Thus, Ruppman admitted, at least as of December 4, 2007, according to the DMC’s documents, the DMC was aware of plaintiffs attorneys.

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Cite This Page — Counsel Stack

Bluebook (online)
794 N.W.2d 622, 288 Mich. App. 424, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-citizens-insurance-michctapp-2010.