PROGRESSIVE SPEC. INS. v. Univ. of Ala.

953 So. 2d 413
CourtCourt of Civil Appeals of Alabama
DecidedJuly 21, 2006
Docket2041124
StatusPublished

This text of 953 So. 2d 413 (PROGRESSIVE SPEC. INS. v. Univ. of Ala.) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PROGRESSIVE SPEC. INS. v. Univ. of Ala., 953 So. 2d 413 (Ala. Ct. App. 2006).

Opinion

953 So.2d 413 (2006)

PROGRESSIVE SPECIALTY INSURANCE COMPANY
v.
UNIVERSITY OF ALABAMA HOSPITAL.

2041124.

Court of Civil Appeals of Alabama.

July 21, 2006.
Certiorari Denied September 15, 2006.

R. Larry Bradford and Justin B. Lamb of Bradford & Sears, P.C., Vestavia Hills, for appellant.

William Kent Upshaw of Comer & Upshaw, LLP, Birmingham, for appellee.

Alabama Supreme Court 1051580.

CRAWLEY, Presiding Judge.

Progressive Specialty Insurance Company ("Progressive") issued a policy of automobile insurance to Deborah McFarland. That insurance policy provided "medpay" coverage; the policy limits of the medpay coverage were $2,000. On January 19, 2004, Nick Williams was involved in a single-vehicle automobile accident while driving McFarland's automobile. Williams was hospitalized at University of Alabama Hospital ("UAB") between January 20 and January 24, 2004, for treatment of injuries resulting from the January 19, 2004, accident. During Williams's hospitalization and treatment, he accrued $27,898.57 in hospital charges. Pursuant to Ala.Code *414 1975, § 35-11-370, UAB filed a notice of hospital lien on January 29, 2004, for the amount of $27,898.57. Progressive paid the $2,000 policy limits for medpay coverage directly to Williams on February 11, 2004, after receiving either constructive or actual notice of UAB's hospital lien. UAB contended that Progressive had impaired its hospital lien by directly paying the $2,000 in medpay coverage to Williams.

Progressive then filed an action seeking a judgment declaring that the hospital-lien statute applied only to proceeds available to a patient by virtue of a tort action or settlement. Progressive and UAB stipulated to the above-mentioned facts, and the trial court considered legal argument by both parties. The trial court entered a judgment declaring that the hospital-lien statute does apply to moneys due a patient as the result of a contractual undertaking such as a policy of insurance. The court further determined that Progressive had impaired UAB's lien, and it awarded UAB $27,898.57 and attorney fees in the amount of $4,000. Progressive appeals, arguing that the hospital-lien statute, by its language, applies only to moneys due a patient as a result of the tort liability of a third party and that the trial court erred in awarding UAB attorney fees in the declaratory-judgment action. We affirm.

The hospital-lien statute reads as follows:

"Any person, firm, hospital authority or corporation operating a hospital in this state shall have a lien for all reasonable charges for hospital care, treatment and maintenance of an injured person who entered such hospital within one week after receiving such injuries, upon any and all actions, claims, counterclaims and demands accruing to the person to whom such care, treatment or maintenance was furnished, or accruing to the legal representatives of such person, and upon all judgments, settlements and settlement agreements entered into by virtue thereof on account of injuries giving rise to such actions, claims, counterclaims, demands, judgments, settlements or settlement agreements and which necessitated such hospital care, subject, however, to any attorney's lien."

§ 35-11-370 (emphasis added).

Progressive argues that the language used in the hospital-lien statute clearly evinces an intent that the statute be applied only to moneys owed a patient on the basis of tort liability. UAB disagrees, stating that the text of the statute contains no words evincing an intent that the lien attach only to moneys resulting from tort liability to a patient. We are presented, then, with a question of statutory construction.

"`"In determining the meaning of a statute, this Court looks to the plain meaning of the words as written by the legislature. As we have said:
"`"`"Words used in a statute must be given their natural, plain, ordinary, and commonly understood meaning, and where plain language is used a court is bound to interpret that language to mean exactly what it says. If the language of the statute is unambiguous, then there is no room for judicial construction and the clearly expressed intent of the legislature must be given effect."'"'
"Richardson v. Terry, 893 So.2d 277, 283 (Ala.2004) (quoting DeKalb County LP Gas Co. v. Suburban Gas [, Inc.], 729 So.2d 270, 275-76 (Ala.1998)). `"When ascertaining legislative intent, statutes which are in pari materia . . . must be interpreted as a whole in light of the *415 general purpose of the statute."' Ex parte Berryhill, 801 So.2d 7, 10 (Ala. 2001) (quoting Kirkland v. State, 529 So.2d 1036, 1038 (Ala.Crim.App.1988))."

Blackmon v. Brazil, 895 So.2d 900, 907 (Ala.2004).

Progressive grounds its entire argument on a comparison between the hospital-lien statute and Ala.Code 1975, § 25-5-11(a), the statute governing reimbursement of the employer out of damages recovered from third parties in the workers' compensation context. See Bunkley v. Bunkley Air Conditioning, Inc., 688 So.2d 827 (Ala. Civ.App.1996). In Bunkley, this court held, based on a previous case in which our supreme court had construed the predecessor statute to § 25-5-11(a), that § 25-5-11(a) allowed a credit to the employer "only against recoveries from the third-party wrongdoer whose tortious act proximately caused the worker's injury." Bunkley, 688 So.2d at 830 (relying on State Farm Mut. Auto. Ins. Co. v. Cahoon, 287 Ala. 462, 252 So.2d 619 (1971)). The language of § 25-5-11(a), however, differs from the language of the hospital-lien statute.

Section 25-5-11(a) reads, in pertinent part, as follows:

"If the injury or death . . . was caused under circumstances also creating a legal liability for damages on the part of any party other than the employer. . . . "

(Emphasis added.) Section 25-5-11(a) requires that the injury be caused by circumstances that result in legal liability for damages. That is, § 25-5-11(a) permits an employer to be reimbursed, when recovery is realized, for its payment of workers' compensation benefits when the employee is injured under circumstances that result in legal liability of a third party for the injury. Bunkley, 688 So.2d at 830. The language in the hospital-lien statute indicates that the lien attaches to "any and all actions, claims, counterclaims and demands" that accrue to the patient. § 35-11-370. The statute does not limit the hospital's right to assert a lien to only those claims that arise out of legal liability based upon the circumstances surrounding the accident giving rise to the patient's injuries. Thus, Progressive's argument that the hospital-lien statute does not apply to moneys available to a patient by virtue of a contractual obligation such as an insurance policy cannot find support in the construction of language in § 25-5-11(a), which is materially different.

The language in § 35-11-370 indicates that a lien attaches to all actions, claims, counterclaims, and demands that accrue to a patient on account of the injuries for which he or she was treated. Although terms like "actions," "claims," and "counterclaims" evoke the legal equivalents of those terms, i.e., a cause of action or a legal claim raised in a complaint, the terms "claim" and "demand" are not limited solely to any peculiarly legal meaning by other wording in the statute. A claim is defined as "a demand for something due or believed to be due ." Merriam-Webster's Collegiate Dictionary 227 (11th ed.2003).

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Related

Clark v. Exchange Insurance Association
161 So. 2d 817 (Supreme Court of Alabama, 1964)
Kirkland v. State
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729 So. 2d 270 (Supreme Court of Alabama, 1998)
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Blackmon v. Brazil
895 So. 2d 900 (Supreme Court of Alabama, 2004)
Andrews v. Merritt Oil Co., Inc.
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Guin v. Carraway Methodist Medical Ctr.
583 So. 2d 1317 (Supreme Court of Alabama, 1991)
State Farm Mutual Automobile Insurance v. Cahoon
252 So. 2d 619 (Supreme Court of Alabama, 1971)
Ex Parte University of South Alabama
761 So. 2d 240 (Supreme Court of Alabama, 1999)
Richardson v. Terry
893 So. 2d 277 (Supreme Court of Alabama, 2004)
Mitchell v. Huntsville Hospital
598 So. 2d 1358 (Supreme Court of Alabama, 1992)
Ex Parte Berryhill
801 So. 2d 7 (Supreme Court of Alabama, 2001)
City of Vestavia Hills v. Randle
296 So. 2d 710 (Supreme Court of Alabama, 1974)
Bunkley v. Bunkley Air Conditioning, Inc.
688 So. 2d 827 (Court of Civil Appeals of Alabama, 1996)
Progressive Specialty Insurance Co. v. University of Alabama Hospital
953 So. 2d 413 (Court of Civil Appeals of Alabama, 2006)

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953 So. 2d 413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/progressive-spec-ins-v-univ-of-ala-alacivapp-2006.