Mullins v. Med. Lien Mgmt., Inc.
2013 COA 134
Colo. Ct. App.2013Background
- Mullins recovered $16,141.16 from a tort settlement; his law firm withheld $7,520 in fees, leaving $8,381.31 in dispute after an amended complaint.
- Medical Lien Management, Inc. (MLM) claimed a medical lien (assigned from SpineOne) for $17,081.10 against the settlement proceeds and sued/defended via counterclaims for breach of contract and declaratory relief.
- MLM initially pleaded counterclaims in its original answer but omitted them when answering Mullins’s amended complaint; the parties nonetheless litigated the substance of those counterclaims for over a year.
- The trial court found MLM had a valid lien, that Mullins breached the lien agreement, awarded MLM the interpleaded funds and additional damages, and articulated multiple alternative grounds for judgment (including sufficiency of trial proof).
- On appeal Mullins argued: (1) MLM abandoned its counterclaims by failing to replead them; (2) trial evidence and witnesses were untimely disclosed (discovery violations); (3) MLM’s witness should have been qualified as an expert; (4) certain exhibits were inadmissible hearsay; and (5) lack of proof of consideration for the lien assignment.
- The court rejected all challenges, affirming the judgment for MLM.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether MLM waived/abandoned counterclaims by failing to replead after Mullins’s amended complaint | Mullins: omission in the amended-answer amounted to waiver/abandonment of counterclaims | MLM: no waiver — it continuously litigated the counterclaims and manifested intent to pursue them; C.R.C.P.13 does not require repleading | Held: no waiver; counterclaims were tried with Mullins’s implicit consent under C.R.C.P.15(b) and parties were on notice |
| Admissibility of trial exhibits disclosed late under C.R.C.P.16.1(k)(6) | Mullins: late disclosure prejudiced his ability to object/authenticate | MLM: exhibits were previously produced/disclosed in other pleadings and summary-judgment filings; Mullins was not prejudiced | Held: no abuse of discretion admitting exhibits; no prejudice shown |
| Permitting MLM’s witness (Dampier) to testify without expert qualification on reasonableness of medical bills | Mullins: testimony required expert qualification under CRE 702 | MLM: testimony was lay opinion under CRE 701 based on comparative, non-specialized experience | Held: allowed as lay opinion; Dampier’s reasoning was within ordinary experience and helpful under CRE 701 |
| Admissibility of certain documents (expert disclosure, pretrial order, signed lien) as hearsay | Mullins: documents contained inadmissible hearsay | MLM: documents were party admissions (prepared/executed by Mullins or his counsel) | Held: documents admissible as admissions by party opponent under CRE 801(d)(2) |
Key Cases Cited
- Roberts v. Novinger, 815 P.2d 996 (Colo. App. 1991) (standard for reviewing waiver/abandonment where material facts undisputed)
- Garcia v. Schneider Energy Servs., Inc., 287 P.3d 112 (Colo. 2012) (federal rule interpretation may be persuasive when state and federal rules align)
- Ground Zero Museum Workshop v. Wilson, 813 F. Supp. 2d 678 (D. Md. 2011) (counterclaims need not be repled to avoid waiver where party otherwise manifests intent to pursue them)
- Johnson v. Berry, 228 F. Supp. 2d 1071 (E.D. Mo. 2002) (contrast — failure to replead counterclaims held to constitute abandonment where prejudice and failure to prosecute shown)
- Town of Carbondale v. GSS Props., LLC, 169 P.3d 675 (Colo. 2007) (issues not in pleadings may be properly before court when litigated without timely objection)
- Todd v. Bear Valley Vill. Apartments, 980 P.2d 973 (Colo. 1999) (discretion to admit testimony where witness was reasonably disclosed through prior filings)