Southern Surety Co. v. Harrisburg Hospital, Inc.

253 Ill. App. 458, 1929 Ill. App. LEXIS 53
Appellate Court of Illinois·Decided June 5, 1929·Published·Cited by 1 cases

Opinion

Mr. Justice Wolfe

delivered the opinion of the court.

Appellee brought suit in assumpsit against the appellant on account for hospital, surgical, medical and professional services rendered certain employees of A. Guthrie & Company, who had received personal injuries in the course of their employment. Appellant had a contract of insurance with said A. Guthrie & Company against claims covered by the Workmen’s Compensation Law of this State. There was no express contract between appellant and appellee. Injured employees were sent to the appellee by Dr. Duncan, who was employed by A. Guthrie & Company, and bills were rendered appellant for services performed by appellee. Some of the bills were paid by the appellant. The amount of unpaid bills is $1,307.50, for which appellee recovered judgment on a trial of the issues before the trial judge of the Saline county circuit court. Appellant defended the suit upon the theory that appellee’s cause of action was against A. Guthrie & Company, who was primarily liable for necessary hospital, surgical and medical attention furnished to the employees and that whatever the contractual relations between A. Guthrie & Company and appellant were had no bearing in this suit.

Appellant contends that, if there was any liability upon an implied contract, by the conduct and manner of prior dealings between appellant and appellee, then the appellee was bound by the acts and recommendations made by Dr. R. B. Nyberg, when he advised appellant that certain of the patients would be discharged from the appellee’s hospital on certain days, and that appellant would not be legally liable for charges rendered by said hospital for hospitalization of said patients after the date of which Dr. Nyberg advised appellant said patients would be discharged.

There is little, if any, dispute in regard to the facts in this case. For several years A. Guthrie & Company, by Dr. Duncan, had been in the habit of sending injured employees to the hospital for treatment and the bills had always been rendered to the appellant for the hospital services and treatment connected therewith, and, until the controversy over the, bill now in question, had always been paid by the appellant to the hospital company. It is not now contended that Dr. Duncan was not fully authorized by the appellant to place injured employees of A. Guthrie & Company in the hospital in question as agent and representative of the appellant. It is contended under the evidence and pleadings in this case that the plaintiff was not entitled to recover as there was ho express agreement from the appellant to the appellee to pay for such services. The plaintiff relies wholly upon the course of conduct between the parties. that had existed for the last several years as establishing an implied contract between the parties to pay for the services that had been rendered to the injured employees of A. Guthrie & Company.

We think that the evidence sustained the contention of the appellee that the appellant, by its acts and conduct in continuing to allow Dr. Duncan to send the injured employees of A. Guthrie & Company to the hospital for treatment, and without any protest paying the bills to the hospital company when they were rendered, would now be estopped from denying that it had authorized Dr. Duncan to send these patients to the hospital for treatment. The law is well settled that, if a principal, by his conduct toward third parties, causes them to reasonably believe that the second party is agent of the principal and authorized to contract for him, he is estopped from denying the authority of such agent," and when the principal accepts the benefits arising from the contract made by an unau-l thorized agent, he is liable on a special contract and» cannot dispute the authority of said agent. Fay v. Slaughter, 194 Ill. 157; Rawson v. Curtiss, 19 Ill. 456. Or where a principal permits persons, employed by a person, who, with his knowledge, pretend to act for the principal, to continue to work without protest, he ratifies the acts of such agent and is primarily liable. Pardridge v. La Pries, 84 Ill. 51.

The appellant cites American Hominy Co. v. National Bank of Decatur, 294 Ill. 223, and Dorion v. Jacobson, 113 Ill. App. 563, as cases sustaining the contention that it is not liable in cases of this kind. The point in the above-cited cases is not the same as in this. There was no contention in either of those cases that, the insurance company was liable, nor was the suit against the insurance company. In this case, as we view it, the Workmen’s Compensation Act is not governing, since the case does not arise under that law or act, but it is a suit upon an implied contract for services rendered.

It is further.contended by the appellant that even by admitting that there is a liability upon an implied contract, then the amount of settlement should be reduced from $1,307.50 to $1,064.50, for the reason that the patients were not discharged from the hospital at the time Dr. Nyberg wrote the appellant that three of these patients should be discharged from the hospital. Dr. Nyberg was the attending physician and surgeon in charge of these patients, and it is undisputed that he wrote to the appellant December 14, 1927, and stated that the patient Dan Radiocovich within a short time could be discharged from the hospital but should report back for daily treatment. On the same date similar letters were written in regard to patients W. H. Miller and George Sukis, stating, that they would be able to be discharged on December 19., None of these patients was discharged on the day that Dr. Nyberg stated in his letter to the appellant they would be discharged. Dr. Nyberg is very positive in his testimony and gives his reason why these patients were not discharged, viz.: That the patients did not improve as rapidly as he had anticipated..

Appellant does not attempt to disprove any of the evidence of Dr. Nyberg, but contends that for the reason that he did not notify it that the patients would not be discharged, it cannot be held responsible for the care and services rendered these three patients from the date stated in the letter that they were to be discharged, until the time they were actually discharged from the hospital.

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Southern Surety Co. v. Harrisburg Hospital, Inc., 253 Ill. App. 458, 1929 Ill. App. LEXIS 53 (Ill. Ct. App. 1929).

253 Ill. App. 458 (Southern Surety Co. v. Harrisburg Hospital, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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