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Portercare Adventist Health System v. Lego
286 P.3d 525
Colo.
2012
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Background

  • Porter admitted Lego’s wife to Porter’s emergency room on August 14, 2001; Mrs. Lego stayed until November 9, 2001.
  • Insurance notified Lego in late Sept. 2001 that coverage would stop after Oct. 10, 2001; Lego refused discharge and accepted responsibility disputes.
  • Porter notified Lego in writing that liability would shift after Oct. 10, 2001; an oral notice of financial responsibility followed on Oct. 24, 2001.
  • Porter billed Lego $144,044.86 on November 24, 2001 for expenses after Oct. 10, 2001; Lego refused to pay.
  • Porter filed suit for money owed on April 28, 2005; Lego argued the action was for unjust enrichment/quantum meruit and subject to a three-year limit.
  • Trial court and then the court of appeals disagreed about whether the debt was a liquidated debt and which statute of limitations applied.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Does six-year limit apply to liquidated debt in hospital context? Porter contends debt is liquidated under 18-80-108.5(1)(a). Lego argues debt is not liquidated, triggering three-year limit. Yes; six-year limit applies to liquidated debt in hospital context.
Does § 13-80-103.5(1)(a) require a written contract or formula to be liquidated? Liquidated debt may be determined by extrinsic computation, not only written terms. Only debts matching a stated amount or formula are liquidated. Debt can be liquidated by reference to the agreement or by simple computation using extrinsic evidence.

Key Cases Cited

  • Rotenberg v. Richards, 899 P.2d 365 (Colo. App. 1995) (defines liquidated debt; supports computation-based ascertainment)
  • Uhl v. Fox, 498 P.2d 1177 (Colo. App. 1972) (example of liquidated debt when price proof depends on extrinsic data)
  • Larson v. American National Bank, 484 P.2d 1230 (Colo. 1971) (implied in fact contract lacking price term; quantum meruit considerations)
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Case Details

Case Name: Portercare Adventist Health System v. Lego
Court Name: Supreme Court of Colorado
Date Published: Sep 24, 2012
Citation: 286 P.3d 525
Docket Number: No. 10SC765
Court Abbreviation: Colo.