Texarkana Memorial Hospital, Inc. v. Murdock

903 S.W.2d 868, 1995 WL 437388
CourtCourt of Appeals of Texas
DecidedSeptember 6, 1995
Docket06-94-00099-CV
StatusPublished
Cited by12 cases

This text of 903 S.W.2d 868 (Texarkana Memorial Hospital, Inc. v. Murdock) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Texarkana Memorial Hospital, Inc. v. Murdock, 903 S.W.2d 868, 1995 WL 437388 (Tex. Ct. App. 1995).

Opinions

OPINION

GRANT, Justice.

Texarkana Memorial Hospital (Wadley) appeals a judgment of negligence in favor of the plaintiff Kathy Murdock, the estate of Jessie Burgess, and the Arkansas Department of Human Services. Wadley contends that the trial court erred (1) in entering a judgment in favor of the Arkansas Department of Human Services (ADHS) for $352,-784 with interest, because ADHS’s claim was only derivative to that of Murdock, (2) in entering a judgment for Murdock because there was no evidence, or insufficient evidence, of negligence, and (3) in entering a judgment for the ADHS for $352,784 and interest, because there was no evidence, or insufficient evidence, of a causal link between any injuries caused by negligence of the defendant and the amount of medical expenses awarded. Murdock cross-claims that the trial court erred in disregarding the jury finding that Murdock recover for the medical expenses of Jessie Burgess caused by the negligence of Wadley,

Murdock entered Wadley Hospital on January 21, 1991, ready to give birth. She was placed in a labor room attended by Dr. Thomas Wilson. Wilson was aware that Murdock had previously given birth to a baby with severe congenital birth defects and that tests had indicated similar problems with this pregnancy. As predicted by the doctors during Murdock’s pregnancy, Mur-dock’s baby, Jessie Burgess, was born with severe congenital birth defects. Burgess also had meconium1 in his mouth. Dr. Clark Green attempted to suction the meconium from the baby’s throat eight to ten minutes after birth. Jessie Burgess experienced medical problems until his death in March of 1992.

Murdock sued Wadley, claiming the hospital was negligent because it faded to have a policy providing that laboring mothers be taken to the delivery room and because it did not provide timely attendance of all personnel necessary to deliver the baby. ADHS filed a petition in intervention because it had paid a portion of Murdock’s medical bills, and in return Murdock had assigned it any right to collect for these expenses from any third parties. The jury found (1) that Wadley was [872]*872negligent and that its negligence was a proximate cause of injury to Jessie Burgess, (2) that $250,000 would reasonably compensate the estate of Jessie Burgess for his damages, and (3) that $500,000 would reasonably compensate Murdock for Jessie Burgess’s medical expenses. The trial court entered judgment for the estate of Jessie Burgess in the amount of $250,000 for his damages. The trial court also entered a take-nothing judgment for Murdock for medical expenses and awarded the amount of $352,784 in favor of ADHS for medical expenses.

ADHS’s RECOVERY AS AN ASSIGNEE

By Wadley’s first point of error, it contends that the trial court erred in entering a judgment in favor of ADHS in the amount of $352,784. The parties dispute in what form rights were assigned to ADHS. Both parties base their arguments on an Arkansas Code provision that provides the assignment of Murdock’s cause of action. The Arkansas statute provides that:

(a) As a condition of eligibility, every Medicaid applicant shall automatically assign his or her right to any settlement, judgment, or award which may be obtained against any third party to the Arkansas Department of Human Services to the full extent of any amount which may be paid by Medicaid for the benefit of the applicant.
(b) The applicant for Medicaid benefits shall, in itself, constitute an assignment by operation of law.
(c) The assignment shall be considered a statutory lien on any settlement, judgment, or award received by the recipient from a third party.

ArkCode Ann. § 20-77-307 (Miehie 1993) (emphasis added).

Wadley argues that the statute only provides for assignment once a judgment is obtained and cannot, therefore, be the basis of a judgment against Wadley. There is no restriction in the statute that the assignment cannot take effect prior to judgment. The language in this statute creates a right to a settlement or judgment in favor of ADHS rather than just the right to attach an already existing judgment. This point of error is overruled.

Next, we must decide whether a take-nothing judgment against Murdock for medical expenses defeats ADHS’s right to collect those expenses. Wadley asks this Court to consider Coppock & Teltschik v. Mayor, Day & Caldwell, in which the court stated that an assignee can only assert whatever rights the assignor had. 857 S.W.2d 631 (Tex.App.—Houston [1st Dist.] 1993, n.w.h.). Wadley concludes that ADHS’s claim was derivative to that of Murdock, and, therefore, because the court found Murdock was not entitled to receive any part of the $500,000 found by the jury in medical expenses, ADHS had nothing to be assigned to it.

One to whom a cause of action is assigned after suit is brought takes it subject to final adjudication between the original litigants and is bound by the judgment rendered. Matthews v. Boydstun, 31 S.W. 814 (Tex.Civ.App.—Dallas 1895, writ ref'd). Similarly, the plaintiff could bring the suit for his own use and benefit insofar as his nontransferred interest still subsisted and for the use and benefit of his transferee insofar as the interest in the cause of action had been transferred. Fort Worth & Denver Ry. Co. v. Ferguson, 261 S.W.2d 874, 880 (Tex.Civ.App.—Fort Worth 1953, writ dism’d). The rights of the person who was plaintiff at the time of commencement of the suit are ordinarily in issue, and a recovery by him inures to the benefit of the transferee to the extent of plaintiffs interest. Hearne v. Erhard, 33 Tex. 60 (1870). The assignee depends directly on the assignor’s recovery.

In the case at bar, however, the assignment was not made after suit was brought, and the plaintiff did not bring the suit alone. Both the assignor, Murdock, and the assignee, ADHS, were parties to the suit. When both the assignor and the assignee sue, the procedure actually constitutes the prosecution of a single cause of action, the only difference being that the proceeds of a judgment secured from the defendant are not necessarily given directly or solely to the person who had original title to the cause of action. Ferguson, 261 S.W.2d 874. When a [873]*873plaintiff transfers only a part of a cause of action, the plaintiff can sue for Ms own use and benefit as Ms interest might appear, with the assignee suing in its own name for its own use and benefit as its interest might appear, both prosecuting their separate claims (though founded on the same cause of action) in the same smt. Ferguson, 261 S.W.2d at 880.

TMs case involves the settling of two controversies. Murdock sued Wadley and ADHS intervened. Intervention, like other rules of party jomder, finds support in the desire to avoid a multiplicity of actions m settling the controversies between various parties arising out of a single source of friction. 1 Roy W. McDonald, Texas Civil PRACTICE § 5.78 (rev. 1992). The final judgment must dispose of all parties, mcluding intervenors. 1 Roy W. McDonald, Texas Civil PRACTICE § 5.81 (rev. 1992).

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Texarkana Memorial Hospital, Inc. v. Murdock
903 S.W.2d 868 (Court of Appeals of Texas, 1995)

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Bluebook (online)
903 S.W.2d 868, 1995 WL 437388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texarkana-memorial-hospital-inc-v-murdock-texapp-1995.