Watertown Regional Medical Center, Inc. v. General Casualty Insurance

2014 WI App 62, 354 Wis. 2d 195
Court of Appeals of Wisconsin·Decided April 17, 2014·No. Case No. 2013AP2324; Case No. 2013AP2511·Published

Opinion

LUNDSTEN, J.1

¶ 1. These consolidated appeals present a dispute regarding who is responsible for Watertown Regional Medical Center's statutory "hospital lien" for medical services rendered to a personal injury claimant, Nathaniel McGuire.2 The parties to the appeals are the Medical Center; the law firm that represented McGuire in his personal injury action, Hupy and Abraham, S.C.; and the tortfeasor's insurer, General Casualty Insurance Company. The injured party, McGuire, may or may not owe the Medical Center for medical treatment. McGuire is not a party to this action, and the parties before us do not discuss his liability. Thus, we do not address whether McGuire has liability. ¶ 2. The primary question here is one of statutory interpretation involving whether, under the hospital lien statute, Wis. Stat. § 779.80,3 an attorney or law firm who receives and then distributes a settlement [200] payment on a personal injury claim is, under the lien statute's language, a "person making any payment to [the] injured person ... as compensation for the injuries sustained." See § 779.80(4). We conclude that an attorney or law firm that merely receives and distributes a settlement payment is not such a "person." General Casualty, however, is such a "person" because General Casualty "ma[de] . . . payment to [McGuire] . . . as compensation for the injuries sustained." Therefore, so far as the hospital lien statute is concerned, General Casualty, not Hupy, is liable to the Medical Center under the statute.

¶ 3. A second question is whether, apart from the hospital lien statute, Hupy must indemnify General Casualty for the lien amount. General Casualty alleges that Hupy is liable under three theories that support three separate claims against Hupy: breach of contract, negligence/assumed duty, and equitable estoppel. We disagree that Hupy is liable under any of these theories. We conclude that General Casualty's contract claim fails because nothing in the settlement documents shows that Hupy agreed to be responsible for paying the lien amount. We also conclude, under the undisputed facts here, that General Casualty's other two claims against Hupy are not viable.

¶ 4. The circuit court concluded that both Hupy and General Casualty were liable for the Medical Center lien. The court also concluded that Hupy must indemnify General Casualty for the lien amount. We leave in place the circuit court's decision in appeal No. 2013AP2511 holding General Casualty liable, but reverse the court's decisions in appeal No. 2013AP2324 holding Hupy liable to the Medical Center and to General Casualty.

[201] Background

¶ 5. The material facts are not in dispute. McGuire was injured in an accident allegedly caused by General Casualty's insured. McGuire received medical treatment from the Medical Center, and filed a personal injury action against General Casualty and its insured. The Medical Center filed a lien under the hospital lien statute and served notices with respect to both General Casualty and McGuire.

¶ 6. McGuire, who was represented by Hupy, and General Casualty settled McGuire's personal injury action for $30,000. General Casualty made the settlement check payable to Hupy's trust account. Hupy then distributed the funds to McGuire and others with an interest in the proceeds. At the time of the settlement, Hupy was aware that McGuire owed the Medical Center money for medical expenses related to McGuire's personal injury, but Hupy did not distribute funds to the Medical Center.4

¶ 7. The Medical Center brought a small claims action against both Hupy and General Casualty, seeking recovery from each of them. The Medical Center initially named McGuire as a defendant, but the record [202] shows that McGuire was dismissed from the action. General Casualty cross-claimed against Hupy, seeking indemnification.

¶ 8. On motions to dismiss and for summary judgment, the circuit court concluded that the terms of Wis. Stat. § 779.80 make both Hupy and General Casualty liable for the Medical Center lien. The court also concluded that Hupy must indemnify General Casualty for the lien amount because Hupy contractually agreed to be responsible for the lien as part of the settlement. Hupy and General Casualty both appeal.

Discussion

A. Statutory Liability Under Wis. Stat. § 779.80

¶ 9. The parties dispute as a matter of statutory interpretation whether Hupy or General Casualty or both are liable for the Medical Center's lien under the terms of Wis. Stat. § 779.80. To resolve this dispute, we must interpret the statute and apply it to the undisputed facts, which is a question of law for de novo review. See Tammy W-G. v. Jacob T., 2011 WI 30, ¶ 16, 333 Wis. 2d 273, 797 N.W.2d 854.

¶ 10. "[Statutory interpretation 'begins with the language of the statute. If the meaning of the statute is plain, we ordinarily stop the inquiry.'" State ex rel. Kalal v. Circuit Court for Dane Cnty., 2004 WI 58, ¶ 45, 271 Wis. 2d 633, 681 N.W.2d 110 (quoted source omitted). Statutory language is "interpreted in the context in which it is used; not in isolation but as part of a whole;. . . and reasonably, to avoid absurd or unreasonable results." Id., ¶ 46.

[203] ¶ 11. Here, the focus is on Wis. Stat. § 779.80(4), but, as we shall see, other subsections of that statute provide pertinent context. Subsection (4) provides that "the person making any payment to [the] injured person ... as compensation for the injuries sustained shall, for a period of one year from the date of such payment, remain liable to the hospital for the amount of [the] lien."5

[204] ¶ 12. The question is whether Hupy, General Casualty, or both are a "person making any payment to [McGuire] ... as compensation for the injuries [McGuire] sustained." See id. We agree with the circuit court that General Casualty is a "person making any payment" under the hospital lien statute. However, an intermediary that passes along a payment, like Hupy did here, is not such a "person."

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Watertown Regional Medical Center, Inc. v. General Casualty Insurance, 2014 WI App 62, 354 Wis. 2d 195 (Wis. Ct. App. 2014).

2014 WI App 62 (Watertown Regional Medical Center, Inc. v. General Casualty Insurance) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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