United States v. Margaret Jernigan Wall

670 F.2d 469, 1982 U.S. App. LEXIS 22069
CourtCourt of Appeals for the Fourth Circuit
DecidedFebruary 4, 1982
Docket81-1305
StatusPublished
Cited by4 cases

This text of 670 F.2d 469 (United States v. Margaret Jernigan Wall) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Margaret Jernigan Wall, 670 F.2d 469, 1982 U.S. App. LEXIS 22069 (4th Cir. 1982).

Opinion

SPROUSE, Circuit Judge:

The United States brought this action against Margaret Jernigan Wall pursuant to 42 U.S.C. § 2651, which authorizes recovery by the government of medical expenses incurred by it for the treatment of United States personnel injured by a third-party’s tortious conduct and then treated at a government medical facility. The issue of Wall’s liability was resolved in the government’s favor at a jury trial below, and is not contested on appeal. Wall, however, contends that the district court erred in granting the government’s motion for summary judgment as to the amount of damages. We agree and reverse.

*470 On July 26, 1977, Wall was operating an automobile which collided with a motorcycle driven by Airman Joseph Allen at an intersection in Goldsboro, North Carolina. Allen was treated at military facilities in Golds-boro and at Fort Bragg, North Carolina. In September 1977 this suit was instituted under the Medical Care Recovery Act (MCRA), 42 U.S.C. §§ 2651-2653. While the respective liabilities of Wall and Allen were resolved at the jury trial, the government was granted summary judgment as to the amount of damages, $9,508.00, based on regulations promulgated by the Office of Management and Budget (OMB). The allowance of damages based solely on OMB’s administrative determination is the crux of this appeal.

The United States is statutorily required to furnish medical care to a variety of civilian and military personnel. The MCRA was enacted in 1962 to allow the government to recover the reasonable cost of such medical care provided those persons tor-tiously injured by a third party. See S.Rep. No.1945, 87th Cong. 2d Sess., reprinted in [1962] U.S.Code Cong. & Ad.News 2637. In pertinent part it provides that:

In any case in which the United States is authorized or required by law to furnish hospital, medical, surgical, or dental care and treatment ... to a person who is injured or suffers a disease, . . . under circumstances creating a tort liability upon some third person (other than or in addition to the United States and except employers of seamen treated under the provisions of section 249 of this title) to pay damages therefor, the United States shall have a right to recover from said third person the reasonable value of the care and treatment so furnished or to be furnished and shall, as to this right be subrogated to any right or claim that the injured or diseased person, his guardian, personal representative, estate, dependents, or survivors has against such third person to the extent of the reasonable value of the care and treatment so furnished or to be furnished. . . .

42 U.S.C. § 2651(a).

The President may prescribe regulations to carry out this chapter, including regulations with respect to the determination and establishment of the reasonable value of the hospital, medical, surgical, or dental care and treatment . . . furnished or to be furnished.

42 U.S.C. § 2652(a).

The authority to promulgate regulations “with respect to the determination and establishment” of reasonable values was delegated to the OMB and rates “determined to represent the reasonable cost” of federally-provided medical care were published in the Federal Register, 41 Fed.Reg. 26757 (1976). As applicable to this case, the rates were set at $168 per day for in-patient care and $20 per day for out-patient treatment, but the regulations are silent as to the method by which these rates were determined. 1

Using the above figures, the government determined that it provided Allen with care having a reasonable cost of $9,508.00. By way of contrast, it was stipulated that equivalent care could have been obtained at private facilities in the Goldsboro area for $5,192.50. In this appeal, Wall contests the conclusive effect given this administrative determination, contending that (1) it was not Congress’ intent to accord the challenged rates conclusive effect and (2) if the rates established by the OMB are conclusive, they constitute a constitutionally invalid “irrebuttable presumption.”

Her first contention is without merit. The clear and unambiguous language of section 2652(a) vests in the President the authority to establish regulations with respect to the establishment of reasonable rates for care at a government facility. We perceive no legislative intent to require the government to litigate, in each and every case, the reasonableness of the administratively fixed rate as compared to prevailing rates at local civilian facilities.

*471 Wall next contends that the fifth amendment’s due process clause bars the conclusive application of the OMB rate, citing Cleveland Board of Education v. LaFleur, 414 U.S. 632, 94 S.Ct. 791, 39 L.Ed.2d 52 (1974), Vlandis v. Kline, 412 U.S. 441, 93 S.Ct. 2230, 37 L.Ed.2d 63 (1973), and Stanley v. Illinois, 405 U.S. 645, 92 S.Ct. 1208, 31 L.Ed.2d 551 (1972).

Stanley invalidated provisions of Illinois law preventing unwed fathers from challenging the custody status of their offspring. In LaFleur, the Court found a mandatory maternity leave system to be “overly restrictive.... [constituting] a heavy burden” on the freedom of personal choice in matters of marriage and family life. Vlandis held that a college tuition system which turned on a statutory definition of “residency” was invalid, as it did not allow those seeking to meet its requirements to show factors relating to residency. We do not believe that these holdings control our disposition of this case. Contrary to the provisions in Stanley and LaFleur, the challenged regulation does not infringe on the exercise of rights having constitutionally-protected status. Unlike the state regulations examined in Vlandis, it does not isolate a single factor as being critical to distinguishing between classes of people, and then deny litigants the opportunity to show they are or are not members of a particular group. See Weinberger v. Salfi, 422 U.S. 749, 771-73, 95 S.Ct. 2457, 2469-70, 45 L.Ed.2d 522 (1975). It merely seeks to establish, pursuant to specific congressional authorization, the reasonable value of services rendered at government medical facilities. The establishment of a nationally-applicable rate does not “involve affirmative Government action which seriously curtails important liberties cognizable under the Constitution,” id. at 785, 95 S.Ct. at 2476, and there is “[t]hus no basis for ...

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Bluebook (online)
670 F.2d 469, 1982 U.S. App. LEXIS 22069, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-margaret-jernigan-wall-ca4-1982.