Sloat Chiropractic Clinic v. Steve Evans Datsun

706 S.W.2d 181, 17 Ark. App. 161, 1986 Ark. App. LEXIS 2086
CourtCourt of Appeals of Arkansas
DecidedMarch 19, 1986
DocketCA 85-435
StatusPublished
Cited by1 cases

This text of 706 S.W.2d 181 (Sloat Chiropractic Clinic v. Steve Evans Datsun) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sloat Chiropractic Clinic v. Steve Evans Datsun, 706 S.W.2d 181, 17 Ark. App. 161, 1986 Ark. App. LEXIS 2086 (Ark. Ct. App. 1986).

Opinion

Donald L. Corbin, Judge.

This appeal from the Arkansas Workers’ Compensation Commission presents the novel question of whether a chiropractor has an independent right to seek compensation for a medical bill for services to a patient who has not filed a workers’ compensation claim. The Commission found no support in the act for this proposition and reversed the ALJ’s decision. We affirm.

James Yarbrough, an employee of appellee Steve Evans Datsun, was involved in an automobile accident in September, 1983, which allegedly occurred while Yarbrough was driving for appellee. A few days later Yarbrough went to appellant Sloat Chiropractic Clinic for treatment. Several x-rays were taken. Yarbrough informed appellant that he had been injured in a car accident while working for appellee and signed an agreement entitled “Assignment of Payment” which provided as follows:

My attorney and/or insurance company are hereby requested and authorized to pay direct to H.C. Sloat, D.C. any monies due him on account, the same to be deducted from any settlement made on my behalf.
Further, I agree to pay H.C. Sloat, D.C. the difference, if any, between the total amount of his charges and the amount paid him by the attorney and/or insurance company. It is further understood that I, the undersigned, agree to pay H.C. Sloat, D.C. the full amount of his charges, should my condition be such that it is not covered by my policy or if for any reason the insurance company refuses to pay my claim.
Dated 9-26-83 /s/ James Yarbrough

The record reflects that Yarbrough elected not to file a claim for benefits under the Arkansas Workers’ Compensation Act and, instead, pursued a third party action against the driver of the other automobile. That action resulted in a settlement to Yar-brough of $9,097. The settlement covered payment of Yar-brough’s attorney’s fee and all medical bills except for the $250 bill from appellant Sloat Chiropractic Clinic.

Yarbrough testified at the hearing that when he signed the Assignment of Payment he thought that his workers’ compensation would cover appellant’s charges. He stated that he found out that he was hurt more seriously than he originally thought and hired an attorney. Yarbrough testified that he continued to receive a bill from appellant but that appellant had taken no legal action against him to collect its $250. Yarbrough stated further that for some reason or other, appellant’s bill was not paid along with his other medical expenses when the lawsuit was settled.

The Commission noted in its decision that the ALJ had erroneously based his ruling on that portion of Ark. Stat. Ann. § 81-1311 (Supp. 1985), which provides:

All persons who render services or provide things mentioned herein shall submit the reasonableness of the charges to the Commission for its approval, and when so approved, shall be enforceable by the Commission in the same manner as is provided for the enforcement of compensation payments, but the foregoing provisions relating to charges shall not apply where a written contract exists between the employer and the person who renders such service or furnishes such things.

This provision apparently led the ALJ to conclude that appellant had an independent right to pursue a claim for its charges before the Commission independent of the decision by Yarbrough not to file a workers’ compensation claim. The ALJ also erroneously based his decision on Ark. Stat. Ann. § 81-1320(a) (Supp. 1985), which provides in part as follows:

[Waiver of compensation.] No agreement by an employee to waive his right to compensation shall be valid, and no contract, regulation, or device whatsoever, shall operate to relieve the employer or carrier, in whole or in part, from any liability created by this Act [§§81-1301 — 81-1349], except as specifically provided elsewhere in this Act.

Waiver was not an issue in the case at bar as no claim was filed by Yarbrough and this section is therefore inapplicable. Neither § 81-1320(a) nor § 81-1311 authorize the medical provider to initiate a claim on behalf of an employee in the event a worker elects not to file a claim for benefits.

The question presented by this appeal has not been addressed in Arkansas. In A. Larson, The Law of Workmens Compensation § 61.12(k) (Vol. 2 1983), it is stated that:

The rights of a physician to recover fees in a compen-sable case are derivative; that is, there must first have been compensation claim proceedings initiated by the employee or employer. The physician has no independent standing to make claims within the compensation system, unless this right has been expressly created by statute.

In Grantham v. Coleman Co., 190 Kan. 468, 375 P.2d 629 (1962), the Kansas Supreme Court held that the compensation commissioner had no jurisdiction to entertain a doctor’s claim for services where no proceeding for compensation had been begun by the employee or employer.

The Supreme Court of Rhode Island held in Wynne v. Pawtuxet Valley Dyeing Co., 101 R.I. 455, 224 A.2d 612 (1966), that where specific language providing the right of a physician to proceed under its Workmen’s Compensation Act directly against an employer had been deleted in a later revision of the act, physicians no longer had the right to proceed under the act independently of a proceeding instituted by an employee.

In Eastern Elevator Co. v. Hedman, 290 So.2d 56 (Fla. 1974), an injured workman went to a physician for treatment. The physician treated him and submitted a bill to the state Department of Commerce. The full fee was not approved, and the physician himself sued the employer, presenting himself as a claimant under the Workmen’s Compensation Act. The Judge of Industrial Claims and the Commission found that the physician had standing to bring this independent action. The Florida Supreme Court reversed, holding that under Florida law a physician is entitled to payment for services only after it has been determined that the claim was a compensable one, and that in any event the employer has a duty to pay the injured employee, not the physician. Physicians had no standing to sue as claimants under the Florida law.

Appellant Sloat Chiropractic Clinic relies upon Willits & Son Sod Farm v. Moon, 262 Ark. 742, 561 S.W.2d 82 (1978), and Hulvey v. Kellwood Co., 262 Ark. 564, 559 S.W.2d 153 (1977), for the proposition that the Commission has the authority to determine who is liable for the payment of medical charges. In Willits the Arkansas Supreme Court upheld the Commission’s finding that the employer was liable for medical expenditures due the Veterans Administration Hospital. There, the employee sustained a compensable injury and was admitted to the Baptist Medical Center in a comatose condition. He was later transferred to the Veterans Administration Hospital where he died without ever regaining consciousness.

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Bluebook (online)
706 S.W.2d 181, 17 Ark. App. 161, 1986 Ark. App. LEXIS 2086, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sloat-chiropractic-clinic-v-steve-evans-datsun-arkctapp-1986.