Pamela K. Larsen and Peter A. Larsen v. City of Beloit, Daniel T. Kelley, and Richard v. Holm

130 F.3d 1278, 39 Fed. R. Serv. 3d 987, 1997 U.S. App. LEXIS 34233, 1997 WL 754606
CourtCourt of Appeals for the Seventh Circuit
DecidedDecember 5, 1997
Docket97-1831
StatusPublished
Cited by43 cases

This text of 130 F.3d 1278 (Pamela K. Larsen and Peter A. Larsen v. City of Beloit, Daniel T. Kelley, and Richard v. Holm) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pamela K. Larsen and Peter A. Larsen v. City of Beloit, Daniel T. Kelley, and Richard v. Holm, 130 F.3d 1278, 39 Fed. R. Serv. 3d 987, 1997 U.S. App. LEXIS 34233, 1997 WL 754606 (7th Cir. 1997).

Opinion

CUMMINGS, Circuit Judge.

Peter Larsen was a police officer employed by the City of Beloit, Wisconsin. On January 4, 1985, he was shot twice in the head while attempting to apprehend a kidnapper. The wounds left Officer Larsen semi-comatose and quadriplegic. His wife, Pamela Larsen, is also his legal guardian. At the time of the shooting, the City of Beloit maintained a worker’s compensation insurance policy with Home Insurance Company. This policy and the Wisconsin Worker’s Compensation Act, Wis. Stat. § 102.42, required Home Insurance to pay all of Peter Larsen’s *1280 reasonable and necessary medical expenses indefinitely. See Lisney v. Labor & Indus. Review Comm’n, 171 Wis.2d 499, 493 N.W.2d 14, 22-23 (1992).

In the months following Officer Larsen’s injury, Home Insurance disputed some claimed home care medical expenses and was frequently late in paying other medical bills. In response to these failures by Home Insurance and to a petition signed by some 5,800 Beloit citizens, the Beloit City Council on November 4, 1985 adopted a resolution entitled “Resolution Providing Care for Beloit Police Officer Peter Larsen.” This resolution provided that the City would advance funds to pay the Larsens’ bills for home care nursing and other medical expenses and then submit the bills to Home Insurance for reimbursement. Pamela Larsen claims that City Council member William Watson requested, in exchange for the City’s passage of the resolution, that she refrain from filing any legal action against the City arising out of the shooting. She further claims that both she and the members of the City Council understood the resolution to be part of a bargain in which she agreed to assist the City in seeking reimbursement from Home Insurance and promised not to pursue legal action or seek publicity adverse to the City. The resolution’s terms appear to have been implemented beginning soon after its passage.

About ten months later, on September 15, 1986, the City Council unanimously approved a four-page document entitled “Statement by City Council on Pete Larsen Care.” This statement outlined the City’s procedures for paying Officer Larsen’s medical bills and seeking reimbursement from Home Insurance. In addition, the statement noted that the City had offered Pamela Larsen the services of its accountant to help her keep track of her husband’s medical bills.

From 1986 until the summer of 1996, the City of Beloit paid most of the bills that the Larsens submitted to it and then submitted these bills to Home Insurance for reimbursement. It appears that Mrs. Larsen also submitted some medical bills directly to Home Insurance during this time. During this ten-year period, the Larsens and the City of Beloit had a number of disputes with Home Insurance concerning Officer Larsen’s medical expenses, some of which were resolved only after one side or the other filed a petition with Wisconsin’s Worker’s Compensation Division. In connection with one of these disputes, the City Council passed a resolution on August 3, 1987 providing for payment of specific medical bills and authorizing up to $2,000 in legal fees for the Larsens in the pending worker’s compensation proceedings.

In one instance in 1993, Pamela Larsen named both Home Insurance and the City of Beloit as respondents in a petition to the Worker’s Compensation Division. Eventually, Mrs. Larsen and the City reached an agreement whereby the City paid her over $81,000 for claimed expenses and she agreed to cooperate in obtaining reimbursement for that amount from Home Insurance. In April 1996, the parties reached a tentative settlement with Home Insurance, which the Beloit City Council approved. In May, however, Pamela Larsen informed the City Council that she would not sign the agreement unless the Council addressed her husband’s future medical needs in addition to past bills.

On May 20, 1996, a company acting as Home Insurance’s agent informed the City of Beloit that all future medical bills for Peter Larsen’s care would have to be submitted directly to the insurance company. Any amounts the City advanced to pay such bills would be at its own peril. In response, the City Council passed a resolution on June 6 authorizing an interest-free loan to the Lar-sens if the insurer did not pay the medical bills on time and providing for the hiring of a medical case manager to assist the Larsens with future medical claims.

On July 6, 1996, the Larsens filed a complaint against the City of Beloit, its city manager, and its city attorney 1 alleging on the authority of 42 U.S.C. § 1983 that the June 6 resolution had deprived them of a *1281 federally protected property interest without due process of law, in violation of rights guaranteed by the Fourteenth Amendment. According to the complaint, a property interest had been created by the Council’s prior resolutions concerning Officer Larsen’s care, and the City had taken away that property without affording the Larsens or their counsel proper notice or an opportunity to oppose the new resolution. On July 15, the City Council adopted a resolution instructing the Larsens to submit all claims directly to Home Insurance and ordering City officials not to pay any more bills for Officer Larsen’s medical care. This resolution also rescinded the June 6 resolution. The Larsens then amended their complaint to allege that the July 15 resolution' violated their federally protected property interest in the City’s payments for medical expenses, again without the notice and opportunity for response that they believe due process required.

After the City filed a motion for summary judgment on January 7, 1997, the Larsens asked the district court for leave to file a second amended complaint. At about the same time, two of the Larsens’ present attorneys filed a motion to appear in the case pro hac vice, and the Larsens asked for an extension of time to respond to the City’s summary judgment motion. The district court denied the motion to extend time, but on the day after their response to the summary judgment motion was due the Larsens filed a motion to reconsider that denial. On January 29, the district court granted an extension of the briefing schedule, allowed the two attorneys to appear pro hac vice, and gave the Larsens leave to file their second amended complaint.

At the same time, however, the court sanctioned the Larsens and their attorneys by awarding the City its reasonable attorneys’ fees and costs incurred in opposing the three motions at issue. The court based its award of sanctions on a determination that the motions were without justification and “part of that further delay which has been orchestrated by plaintiffs’ counsel from the commencement of this action to date.” (Jan. 29, 1997 Order, at 1.) Counsel for the Larsens were not given prior notice that the court was considering sanctions, nor did the court afford them an opportunity to be heard regarding the issue of sanctions. On February 4, 1997, the court issued an Order fixing the amount of the sanctions at $1,286.75.

In due course the Larsens filed their second amended complaint, and the City quickly moved for summary judgment.

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Bluebook (online)
130 F.3d 1278, 39 Fed. R. Serv. 3d 987, 1997 U.S. App. LEXIS 34233, 1997 WL 754606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pamela-k-larsen-and-peter-a-larsen-v-city-of-beloit-daniel-t-kelley-ca7-1997.