Andrеa Townsend, Plaintiff-Appellant, v. ChartSwap, LLC, Defendant-Respondent-Petitioner.
No. 2019AP2034
SUPREME COURT OF WISCONSIN
November 26, 2021
2021 WI 86 | 399 Wis. 2d 599 | 967 N.W.2d 21
L.C. No. 2018CV9938
REVIEW OF DECISION OF THE COURT OF APPEALS Reported at 395 Wis. 2d 229, 952 N.W.2d 831 PDC No: 2021 WI App 79 - Published
OPINION FILED: November 26, 2021
ORAL ARGUMENT: September 29, 2021
SOURCE OF APPEAL:
COURT: Circuit
COUNTY: Milwaukee
JUDGE: Paul R. Van Grunsven
JUSTICES:
ROGGENSACK, J., delivered the majority opinion of the Court, in which ZIEGLER, C.J., REBECCA GRASSL BRADLEY, and HAGEDORN, JJ., joined, and in which ANN WALSH BRADLEY, DALLET, and KAROFSKY, JJ., joined, except for ¶¶17 and 23-26. DALLET, J., filed a concurring opinion, in which ANN WALSH BRADLEY and KAROFSKY, JJ., joined.
ATTORNEYS:
For the defendant-respondent-petitioner, there were briefs filed by Thomas L. Shriner, Jr., Andrew J. Wronski, Philip C. Babler, Anne-Louise T. Mittal, and Foley & Lardner LLP, Milwaukee. There was an oral argument by Thomas L. Shriner, Jr.
For the plaintiff-appellant, there was a brief filed by Robert J. Welcenbach and Welcenbach Law Offices, S.C., Milwaukee; with whom on the brief was Scott C. Borison and Legg Law Firm LLC, Baltimore, Maryland; with whom on the brief was Jon Craig Jones and Jones & Hill, LLC, Oakdale, Louisiana. There was an oral argument by Scott C. Borison.
An amicus curiae brief was filed on behalf of Wisconsin Association for Justice by Brett A. Eckstein and Cannon & Dunphy, S.C., Brookfield.
NOTICE
This opinion is subject to further editing and modification. The final version will appear in the bound volume of the official reports.
ROGGENSACK, J., delivered the majority opinion of the Court, in which ZIEGLER, C.J., REBECCA GRASSL BRADLEY, and HAGEDORN, JJ., joined, and in which ANN WALSH BRADLEY, DALLET, and KAROFSKY, JJ., joined, except for ¶¶17 and 23-26. DALLET, J., filed a cоncurring opinion, in which ANN WALSH BRADLEY and KAROFSKY, JJ., joined.
REVIEW of the decision of the Court of Appeals. Reversed.
¶2 We conclude that, under a plain meaning interpretation of
I. BACKGROUND
A. Factual History4
¶3 On August 2, 2016, Andrea Townsend (“Townsend“) was injured in a car crash.
¶4 Following her attorney‘s request, ChartSwap replied on behalf of Milwaukee Radiologists and provided a one page certified health care record to Townsend, for which it charged $35.87. Townsend‘s attorneys pаid the bill. Townsend then asserted claims against ChartSwap for negligent or intentional violation of the fee structure dictated for health care providers in
B. Procedural History
¶5 In the circuit court, ChartSwap moved to dismiss the complaint for failure to state a claim upon which relief can be granted. ChartSwap alleged that
¶6 The circuit court granted ChartSwap‘s motion to dismiss. It relied on the plain language of
¶7 The court of appeals reversed, holding that, as an agent of Milwaukee Radiologists
¶8 In so concluding, the court of appeals interpreted
[I]n conjunction with the remedial provision set forth in
Wis. Stat. § 146.84(1)(b) , which explicitly imposes liability upon ‘any person . . . who violates [§] 146.83,’ andWis. Stat. § 990.001(9) , which expressly states that when construing legislative requirements found in all statutes, the legislature‘s requiremеnts apply with equal force to the acts of agents.
Id., ¶10. The court of appeals reasoned that this conjunctive interpretation guarded against the “absurd” result of allowing health care providers to charge patients “more than the reasonable copying and mailing costs if the providers hire others to perform the task of supplying the records.” Id., ¶14. Therefore, the court of appeals concluded that
¶9 We granted ChartSwap‘s petition for review.6 On review, we determine: (1) whether
II. DISCUSSION
A. Standard of Review
¶10 A motion to dismiss tests the legal sufficiency of the complaint. Serv. Emps. Int‘l Union, Loc. 1 v. Vos, 2020 WI 67, ¶28, 393 Wis. 2d 38, 946 N.W.2d 35. Upon a motion to dismiss, we accept as true all facts well-pleaded in the complaint and the reasonable inferences therefrom. Kaloti Enters., Inc. v. Kellogg Sales Co., 2005 WI 111, ¶11, 283 Wis. 2d 555, 699 N.W.2d 205. However, a court cannot add facts in the process of construing a complaint. John Doe 1 v. Archdiocese of Milwaukee, 2005 WI 123, ¶19, 284 Wis. 2d 307, 700 N.W.2d 180. Moreover, “legal conclusions asserted in a complаint are not accepted, and legal conclusions are insufficient to withstand a motion to dismiss.” Data Key Partners v. Permira Advisers LLC, 2014 WI 86, ¶18, 356 Wis. 2d 665, 849 N.W.2d 693. Therefore, our focus is on
¶11 Additionally, this case involves questions of statutory interpretation and application. Statutory interpretation and application present questions of law that we independently review, while benefitting from the decisions of the circuit court and the court of appeals. Mаrder v. Bd. of Regents of the Univ. of Wis. Sys., 2005 WI 159, ¶19, 286 Wis. 2d 252, 706 N.W.2d 110.
B. Wisconsin Stat. §§ 146.83(3f)(b) and 146.84(1)(b)
¶12 The “purpose of statutory interpretation is to determine what the statute means so that it may be given its full, proper, and intended effect.” State ex rel. Kalal v. Cir. Ct. for Dane Cnty., 2004 WI 58, ¶44, 271 Wis. 2d 633, 681 N.W.2d 110. Statutory interpretation begins with the language of the statute. If the meaning of the words are plain and unambiguous, a court‘s inquiry ends and there is no need to consult extrinsic sources of interpretation, such as legislative history. Id., ¶¶45, 46. Statutory language is given its “common, ordinary, and accepted meaning, except that technical or speсially-defined words or phrases are given their technical or special definitional meaning.” Id., ¶45 (citing Bruno v. Milwaukee Cnty., 2003 WI 28, ¶¶8, 20, 260 Wis. 2d 633, 660 N.W.2d 656).
¶13 In addition to the plain words of the text, “[c]ontext is important to meaning. So, too, is the structure of the statute in which the operative language appears.” Kalal, 271 Wis. 2d 633, ¶46. Therefore, “statutory language is interpreted in the context in which it is used; not in isolation but as part of a whole; in relation to the language of surrounding or closely-related statutes; and reasonably, to avoid absurd or unreasonable results . . . [and] read where possible to give reasonable effect to every word, in order to avoid surplusage.” Id. When courts interpret a statute, they are not at liberty “to disregard the plain, clear words of the statute.” Id.
¶14 Turning to the statute at issue,
- For paper copies: $1 per page for the first 25 pages; 75 cents per page for pages 26 to 50; 50 cents per page for pages 51 to 100; and 30 сents per page for pages 101 and above.
- For microfiche or microfilm copies, $1.50 per page.
- For a print of an X-ray, $10 per image.
- If the requester is not the patient or a person authorized by the patient, for certification of copies, a single $8 charge.
- If the requester is not the patient or a person authorized by the patient, a single retrieval fee of $20 for all copies requested.
- Actual shipping costs and any applicable taxes.
¶15 Instead, in order to hold ChartSwap liable, despite not being defined as a health care provider, the court of appeals cited a third statutory section,
¶16 We agree that the context of a statutory scheme is important to the plain meaning of the text. Statutes are to be construed and harmonized with one another when possible. Pruitt v. State, 16 Wis. 2d 169, 173, 114 N.W.2d 148 (1962). Here, there are two statutes that speak to providing health care records under
¶17 Stated otherwise,
¶18 Furthermore, although the text of
¶19 In addition, limiting the fee restrictions in
¶20 First, it is not absurd for the legislature to make policy decisions regarding the applicability of statutes to different constituents. At some point, there will be a cutoff. This is a policy choice that legislatures frequently make, and policy choices are left to legislative discretion. See Milwaukee J. Sentinel v. City оf Milwaukee, 2012 WI 65, ¶37, 341 Wis. 2d 607, 815 N.W.2d 367 (“Policy decisions are left to the legislature.“); Henson v. Santander Consumer USA Inc., 137 S. Ct. 1718, 1725 (2017) (“Legislation is, after all, the art of compromise, the limitations expressed in statutory terms often the price of passage . . . .“).
¶21 Second, the perceived unfairness of Townsend‘s scenarios likely have another remedy, which was raised at oral argument. In this case, Townsend asserted that ChartSwap was the agent of Milwaukee Radiologists.9 Milwaukee Radiologists is a health care provider under the statutory definition. Therefore, if Chartswap was the agent of Milwaukee Radiologists when it prоvided Townsend‘s health care records, as has been alleged, Chartswap‘s actions are Milwaukee Radiologists’ actions. See Restatement (Third) of Agency § 7.03(1) (2006) (explaining that a principal is subject to liability to a third party when its agent acts with authority and in contravention of the principal‘s legal obligation). However, whether an agency relationship existed between Milwaukee Radiologists and ChartSwap is not an issue that was presented to us for decision as we review ChartSwap‘s motion to dismiss; and accordingly, we do not decide it.
¶22 Finally, it bears repeating that statutory interpretation begins with the language of the statute. If the meaning of the words are plain and unambiguous, the court‘s inquiry ends, and there is no need to consult extrinsic sources of interpretation, such as legislative history. Kalal, 271 Wis. 2d 633, ¶¶45, 46.
¶23 The court of appeals struggled with interpreting two statutes that address the same subject matter, charging for health care records.
¶24 Even after acknowledging that ChartSwap is not a health care provider under
¶25 If the court of appeals had employed the general/specific canon of statutory construction, it could have assisted its interpretations of
¶26 Applying the general/specific canon here would have assisted the court of appeals in understanding that when the wording of a general statute swallows the application of a specific statute, the “terms of the specific authorization[,
C. Wisconsin Stat. § 990.001(9)
¶27 The court of appeals also concluded that, even if ChartSwap was not included in the statutorily-defined list of health care providers, ChartSwap was nevertheless personally liable to Townsend for extra charges under principles of agency law that the court of appeals сoncluded were codified in
¶28
Acts by agents. If a statute requires an act to be done which may legally be done by an agent, such requirement includes all such acts when done by an authorized agent.
¶29 The court of appeals’ interpretation of
¶30 “[A]n agent is one who acts on behalf of and is subject to reasonably precise control by the principal for the tasks the person performs within the scope of the agency.” Westmas v. Creekside Tree Serv., Inc., 2018 WI 12, ¶36, 379 Wis. 2d 471, 907 N.W.2d 68. “Whether an agency relationship exists is a question of fact that turns on the understanding between the alleged principal and the alleged agent of the relationship.” DOR v. Microsoft Corp., 2019 WI App 62, ¶46, 389 Wis. 2d 350, 936 N.W.2d 160 (citing Noll v. Dimiceli‘s, Inc., 115 Wis. 2d 641, 643, 340 N.W.2d 575 (Ct. App. 1983)).
¶31 Townsend seeks to hold ChartSwap liable because of the fees it charged for health care records that were generated by Milwaukee Radiologists, a health care provider. However, an agent is subject to “liability to a third party harmed by the agent‘s conduct only when the agent‘s conduct breaches a duty that the agent [itself] owes to the third party.” Restatement (Third) of Agency § 7.02. Stated otherwise, in order for an agent to be held liable for a statutory violation committed while acting on behalf of a principal, that same conduct also would need to violate the statute if done in the agent‘s personal capacity. However, no breach of an independent duty of ChartSwap to Townsend is alleged to have occurred. Rather, a breach of Milwaukee Radiologists’ statutory duty to Townsend is alleged.
¶32 Under a plain reading of
¶33 In Rosecky v. Tomaszewski, 225 Wis. 438, 274 N.W. 259 (1937), a lender told a debtor to make payments on a mortgage to an agent that the principal had authorized. Id. at 439. Subsequently, the lender assigned the mortgage to a third party. Id. However, the debtor was never notified of this change and continued to pay the agent, who embezzled the funds. Id.
¶34 The assignee sued the dеbtor and the dispositive issue was whether the debtor should be credited with the payments made to the agent after the assignment. Id. In interpreting the predecessor statute to
¶35 Furthermore, a plain meaning interpretation of
¶36 Accordingly, we conclude that the plain meaning interpretation of
III. CONCLUSION
¶37 We conclude that, under a plain meaning interpretation of
By the Court.—The decision of the court of appeals is reversed.
¶38 REBECCA FRANK DALLET, J. (concurring). Although the substantive canons of statutory interpretation may sometimes be helpful in determining what the legislature meant to say, here they only confuse the analysis. The statutes at issue are straightforward, and understanding them requires no outside interpretive help. I agree with the majority opinion that
¶39 The general-specific canon applies only to statutes that both address the same subject matter and conflict with one another such that harmonizing them is impossible. See Kramer v. City of Hayward, 57 Wis. 2d 302, 310-11, 203 N.W.2d 871 (1973); see also Antonin Scalia & Bryan A. Garner, Reading Law 183 (2012) (explaining that the general-specific canon may apply only when conflicting provisions “simply cannot be recоnciled—when the attribution of no permissible meaning can eliminate the conflict“). Neither condition is met here.
¶40 This case is prime example of how foisting the canons upon an otherwisе straightforward, well-reasoned, and convincing textual analysis is unnecessary—and ultimately confusing. Even if the majority opinion is correct that the general-specific canon applies when a general “authorization” “swallows” a specific authorization, see id., ¶¶25-26, the majority opinion fails to explain how this is such a situation. It offers no explanation for how
¶41 I am authorized to state that Justices ANN WALSH BRADLEY and JILL J. KAROFSKY join this opinion.
