United States v. Deaconess Medical Center

994 P.2d 830, 140 Wash. 2d 104, 2000 Wash. LEXIS 143
CourtWashington Supreme Court
DecidedMarch 2, 2000
DocketNo. 68503-7
StatusPublished
Cited by13 cases

This text of 994 P.2d 830 (United States v. Deaconess Medical Center) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Deaconess Medical Center, 994 P.2d 830, 140 Wash. 2d 104, 2000 Wash. LEXIS 143 (Wash. 2000).

Opinion

Guy, C.J.

This case involves a question certified by the United States District Court for the Eastern District of Washington pursuant to the Federal Court Local Law Certificate Procedure Act, chapter 2.60 RCW. The plaintiff United States of America (United States) wants to enforce a hospital hen against the defendants Deaconess Medical Center, Empire Health Services, and Farmer’s Insurance Company of Washington (Deaconess). The District Court asks this court to determine whether the defendants are responsible for a hospital hen under chapter 60.44 RCW by answering the following question:

Whether, pursuant to R.C.W. § 60.44.010, a party who is subsequently adjudged not to be a tortfeasor, is nevertheless responsible, along with the insurer, for the payment and discharge of a lien pursuant to R.C.W § 60.44.050, when it had [106]*106reached a prior settlement with another party involving the same facts as the litigated matter.

Am. Order Certifying Issue to the Washington Supreme Ct. at 1.

The certified question cannot be answered “yes” or “no” as a matter of law. We hold that a party referred to in the question may be held responsible if the court hearing the suit to enforce the lien decides that the party is a tortfeasor. RCW 60.44.060 directs that the court determine responsibility based upon the court’s finding of the negligence and liability of the party. The existence of a prior settlement constitutes prima facie evidence of the negligence of a party, but such evidence may be rebutted. On the other hand, although nothing in chapter 60.44 RCW indicates that a judgment in another court that the party was not negligent automatically determines the outcome of the hen action, Washington case law on the doctrine of collateral estoppel may be applicable. Therefore, it is up to the trier of fact in the lien action to determine first, whether collateral estoppel applies and then, if not, whether the defendants are negligent.

FACTS

This is an action brought by the United States on behalf of Spokane Veterans Administration Medical Center to enforce a hospital lien arising out of medical care given to veteran Darwin B. Adams from 1985 through 1989. Joint Statement of Facts and Issue for Certification at 1-2. The incident which gave rise to Adams’ hospitalization was the subject of litigation brought by Adams and his children against Deaconess. Id. at 2. Deaconess ended up settling with Adams and all of his children except one; the settlement was for $75,000. Id. The suit maintained by the remaining child went forward and resulted, on June 19, 1998, in a jury verdict finding Deaconess not negligent and awarding no damages. Id. All of the claims brought by the [107]*107Adams family against Deaconess arose out of the same facts. Id.

The United States, pursuant to RCW 60.44.060, seeks to enforce its hen, totaling $18,750, against the proceeds from the settlement. Id. The defendants Deaconess object to the recovery effort because they claim the statute is inapplicable where the defendant has been adjudged not to be a tortfeasor. Id.

On September 14, 1999, Judge Edward F Shea of the United States District Court for the Eastern District of Washington ordered the issue certified to this court for decision. Am. Order Certifying Issue to the Washington Supreme Ct. at 1-2. The certified record was filed in this court on September 16, 1999.

ISSUE

Whether, pursuant to RCW 60.44.010, a party who is subsequently adjudged not to be a tortfeasor is nevertheless responsible, along with the insurer, for the payment and discharge of a hen pursuant to RCW 60.44.050, when it had reached a prior settlement with another party involving the same facts as the litigated matter.

DISCUSSION

The defendants Deaconess argue that because they have been found not negligent in a case arising out of the same facts as the lien, they are not a “tortfeasor” within the meaning of chapter 60.44 RCW, and a lien cannot be asserted against them. To the United States, defendants are tortfeasors because they did settle claims with parties prior to the judgment, and the statute allows the holder of the lien to claim 25 percent of the settlement amount. RCW 60.44.010.

The first question is whether “tortfeasor” in the hospital lien statute refers to a “tortfeasor” or an “alleged or potential tortfeasor.” The defendants claim that this [108]*108court should apply the dictionary definition of “tortfeasor.” They cite the definition from Black’s Law Dictionary: “a wrongdoer; one who commits or is guilty of a tort.” Defs.’ Opening Br. at 8. Since they have not been found guilty of a tort, they are not tortfeasors. The United States reads the statute as applying both to those who are found negligent and those who settle. RCW 60.44.010 authorizes hospital hens, provided that the “hens for service rendered to any one person as a result of any one accident or event shall not exceed twenty-five percent of the amount of an award, verdict, report, decision, decree, judgment, or settlement.” (Emphasis added.) Because the statute allows hospital hens to attach to settlements as well as judgments, “tortfeasors” are not necessarily those found to have committed a tort in a court of law. Therefore, chapter 60.44 RCW may be apphed to Deaconess even though a court has not declared them to be tortfeasors.

Nevertheless, the fact that the hospital hen statute, as a matter of law, may apply to Deaconess does not mean the facts warrant application to them. The fact that the Deaconess defendants may be “tortfeasors” for the purposes of the statute does not end the inquiry. In order for the hen to be enforceable, the claimant must establish the alleged tortfeasor’s neghgence:

Such lien may be enforced by a suit at law brought by the claimant or his assignee within one year after the filing of such lien against the said tort feasor and/or insurer. In the event that such tort feasor and/or insurer shall have made payment or settlement on account of such injury, the fact of such payment shall only for the purpose of such suit be prima facie evidence of the negligence of the tort feasor and of the liability of the payer to compensate for such negligence.

RCW 60.44.060. The statute implies that if the claimant seeks to enforce his hen through a lawsuit, he must establish the tortfeasor’s negligence and the payer’s liability. The fact that the tortfeasor has made a settlement payment constitutes only prima facie evidence of negligence. Deaconess correctly observe that prima facie evidence can be rebutted. Defs.’ Opening Br. at 9.

[109]

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United States v. Deaconess Medical Center
994 P.2d 830 (Washington Supreme Court, 2000)

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Bluebook (online)
994 P.2d 830, 140 Wash. 2d 104, 2000 Wash. LEXIS 143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-deaconess-medical-center-wash-2000.