Robert W. Milas, M.D. v. Society Insurance and Angela Bonlander
16-2148
Iowa Ct. App.Nov 8, 2017Background
- Patient Rickey Fitzgerald obtained alternate care with Dr. Robert Milas after a work injury; Milas recommended elective cervical fusion and submitted a fee estimate of $14,325.87 to Society Insurance.
- Society Insurance claims adjuster Angela Bonlander signed the fee estimate; the estimate stated the representative’s signature would authorize surgery.
- Milas performed the surgery, billed $14,325.87, and Society Insurance paid substantially less after review by a third-party auditor (HSI); Milas rejected partial payments and sued.
- Milas asserted negligent misrepresentation, fraudulent misrepresentation, and breach of contract; summary judgment dismissed the misrepresentation claims; jury found a contract with Society Insurance, breach, and awarded $14,325.87.
- Milas appealed, arguing (1) erroneous dismissal of fraudulent misrepresentation, (2) erroneous refusal to submit punitive damages to the jury, and (3) denial of his recusal motion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether fraudulent misrepresentation survived summary judgment | Milas: Bonlander’s signed authorization falsely represented Society would pay full fees while she intended to negotiate later (scienter/intent) | Society: No evidence of false statement, actual knowledge, or reckless disregard; signature did not prove intent to deceive | Affirmed dismissal — no triable evidence of scienter or intent to deceive |
| Whether punitive damages instruction was required | Milas: Breach and defendants’ conduct justified punitive damages for willful, wanton, malicious breach | Society: Fee review and negotiation do not amount to intentional tort or legal malice | Affirmed refusal — insufficient substantial evidence of willful/wanton conduct or independent tort |
| Whether judge abused discretion in denying recusal | Milas: Ex parte communication, unfavorable demeanor, and alleged evidentiary error showed bias | Society: Ex parte contact was permissible and disclosed; alleged tone or evidentiary rulings do not demonstrate actual prejudice | Affirmed — no abuse of discretion; allegations speculative and routine procedures followed |
| Whether negligent misrepresentation claim should proceed | Milas: Asserted misrepresentation claims based on authorization and later fee negotiation | Society: Not in business of supplying information; no claim-supported duties; summary judgment proper | Implicitly affirmed dismissal on summary judgment (district court granted) |
Key Cases Cited
- Boelman v. Grinnell Mut. Reins. Co., 826 N.W.2d 494 (Iowa 2013) (summary judgment standard review)
- Weddum v. Davenport Cmty. Sch. Dist., 750 N.W.2d 114 (Iowa 2008) (materiality of factual disputes)
- Huck v. Wyeth, Inc., 850 N.W.2d 353 (Iowa 2014) (genuine issue of fact standard)
- Air Host Cedar Rapids, Inc. v. Cedar Rapids Airport Comm’n, 464 N.W.2d 450 (Iowa 1990) (elements of fraudulent misrepresentation)
- Van Sickle Constr. Co. v. Wachovia Comm. Mortg., Inc., 783 N.W.2d 684 (Iowa 2010) (scienter and reckless disregard analysis)
- Magnusson Agency v. Pub. Entity Nat’l Co-Midwest, 560 N.W.2d 20 (Iowa 1997) (punitive damages in contract actions require intentional tort and malice)
- State v. Millsap, 704 N.W.2d 426 (Iowa 2005) (standard for overturning recusal decisions)
- Biddle, 652 N.W.2d 191 (Iowa 2002) (actual prejudice required before recusal)
