*1
BROADWAY
Plaintiff/Appellant, MUTUAL INSURANCE
LIBERTY Defendant/Appellee.
COMPANY, 101,572.
No.
Supreme Court of Oklahoma.
9,May 26, 2006.
Rehearing Denied June
Timоthy A. Heefner A. Brun- and Jennifer er, P.C., Goolsby, Proctor, Olson & Oklahoma City, plaintiff/appellant. Tait, McAlester,
Albert L. Jr. and J. Mark Fenton, Fenton, Smith, Moon, Reneau & City, defendant/appellee.1 Oklahoma par- appear Identified herein are those counsel for the ties whose names on the filed in briefs UM claim that it had settled Johnson’s OPALA, Clinic J. her. the funds to and had disbursed presented this dispositive issue statutory physician’s lien appeal is whether proceed- a small-claim 4 The Clinic filed patient’s unin- attaches Liberty seeking a decla- ing against Mutual *3 in the coverage. We answer motorist sured UM that its lien attached to Johnson’s ration affirmative. At a hear- and to enforce the lien. benefits parties stipulated August the ing on 20
I opposing presented their to the facts McElwee, trial to Roma M. legal arguments LITIGATION ANATOMY OF THE 46(B) §a question of whether judge, on the (Jоhnson) ¶ injured Tijuana was Johnson against UM is enforceable physician’s lien September in accident in an automobile neg- indemnity. judge The trial ruled accident-relat- providing After Johnson judgment for defen- pronounced ative and treatment, Broadway Clinic the ed medical appeal, which brought Plaintiff this dant. (in (Clinic the office of the filed plaintiff) or disposition. for this court’s stands retained Clerk) County a O.S.2001 Oklahoma provisions the of now hold that 5 We against physician’s lien] lien2 [called 46(B), in authorize a lien for her might receive any payment Johnson upon proceeds payable of a favor an insur- tortfeasor or from injuries from the insurer, the by include within ambit an against her a claim asserted er.3 Johnson coverage. patient’s of a UM We insurer, Liberty Mutual Insur- automobile judgment trial court’s hence reverse the defendant) (Liberty or Company Mutual ance judge proceed, upon to re- the trial direct the medical under both to recover benefits mand, today’s consistent with in a manner the coverage and payments uninsured/under- pronouncement. (UM) poli- coverage of her motorist insured cy. II 2002, Liberty paid the April Mutual 3 In $1,000.00 medical under Johnson’s Clinic OF REVIEW STANDARD outstanding leaving an coverage, payments (cid:127) appeal facts relevant to this 6 The rendered for medical services balance month, undisputed, having been submitted Later that same of Johnson $902.00. The issue before by stipulation. trial court a check to Johnson Liberty Mutual issued we must determine $4,200.00, is one of law which represent- us amount of alone the lien is en statutory physician’s coverage. whether a ing proceeds from Johnson’s indemnity. Contested against UM forceable Liberty Mutual informed July In any against for plied or considered valid this court. provisions of Title pursuant to the amounts due Statutes. 85 of the Oklahoma provisions 42 O.S.2001 46 state 2. The of in sub- to the lien B. In addition for pertinent part: section, every physician who section A this Every physician performs medical who A. any injured person performs medical services for any person injured another, a result services for negligence or act as a result another, shall, negligence have, if the or act of injured person main- asserts or shall insurer, injured person a claim asserts or maintains a lien an tains a claim for damages person any on ac- upon other such services due such medical amount injuries, injured a lien for the such have payable count of the insurer to monies upon services person. due for such medical amount going belonging part or any recovery was person or sum had or collected the lien at issue dissent asserts that 3. The injured person, properly perfected and is therefore invalid collected or to be heirs, expressed representative, the reasons personal or next For his and unenforceable. infra, death, compli- plaintiff’s by judg- opine upon of his whether we decline kin in the event ment, settlement, perfec- statutory requirements for compromise. Such lien with the ance 46(B) today's pro- any and confine lien or claim of shall be inferior upon ground decision nouncement attorney handling or on behalf of the claim for judgment rests. court’s ap- which thе district injured person. not be The lien shall Finally, issues of law stand before us for de novo defendant contends that the examining a trial court’s review.4 When le- exemption from attachment and execution gal rulings, appellate ple- court exercises created of 31 O.S.2001 nary independent and au- non-deferential § 1.A.21 person’s for a interest “a claim thority.5 personal bodily injury” in an amount not $50,000.00 places to exceed Johnson’s UM
Ill
benefits out of the reach of the Clinic’s lien.
THE PARTIES’ CONTENTIONS
¶ 11 Plaintiff
contends
the trial court
urges
7 Defendant
us to sustain
trial
46(B)
erred in construing
to exclude the
court’s construction of
to exclude a
46(B),
UM carrier. The terms of
patient’s UM carrier. Defendant contends
plaintiff urges,
*4
unambiguous
are clear and
46(A)
§
that
persons—
creates a class of
any language
and dеvoid of
suggesting that
tortfeasors —which controls and limits the
46(B)
legislature
§
intended to confine
to
46(A)
46(B)
persons
§
§
to whom both
the tortfeasor’s insurer.
In the absence of
conjunction
46(A),
apply.
§
Read in
with
limiting
any
such
language or
other textual
asserts,
legisla-
defendant
it is clear that the
legislature
indication that
intended to
46(B)
§
apply only
ture intended
to
to the
46(B)
way
§
restrict
defendant advo-
insurer, not
pur-
to insurance
tortfeasor’s
cates, plaintiff argues the statute must be
patient.
chased
apply
any
construed as written' —to
to
insur-
¶8
argues
Defendant also
that Oklahoma
er, including
own UM carrier.
jurisprudence involving
types
other
of statu
¶ 12 Plaintiff
argues
further
that defen-
tory
consistently
liens has
denied the lien-
approach
dant’s restrictive
proceeds
meaning
holder access to the
of UM
сover
46(B)
contention,
age.
support
In
of this
legislature’s
defendant
inconsistent with the
Kratz,6
cites this
court’s decision Kratz v.
enacting
intent in
purpose
the statute. The
which held that a 42
O.S.2001 43
encourage
the lien is to
physicians to
indemnity,
lien does not attach to UM
as well
provide
medical treatment
persons
as
appel
two decisions of our intermediate
regard
without
ability
pay
to their
at the
holding
late
that an employer’s
courts
time the services are rendered. Plaintiff ar-
compensation
workers
carrier’s
gues
removing
that
UM
as a source
right
subrogation
does not extend to UM
payment
pur-
would thwart the statute’s
benefits.7
pose.
argues
9 Defendant further
that to con-
¶ 13 Plaintiff also asserts that defendant’s
46(B)
strue the words “an insurer” in
misplaced.
reliance on Kratz is
Plaintiff
generally
just
inсlude insurers
and not
points
statutory hospital
out that
liens are
tortfeasor’s insurer would lead to the absurd
governed by
provisions
result
that
insurance available to the
while the lien it asserts falls under the
game
physi-
would become fair
for a
46(B).
§of
argues
Plaintiff
lien, including
cian’s
first-party
such other
critical differences between
coverage.
insurance as collision
This would
46(B)
§in
impair
preclude
used
applica-
contract of insurance between the
insured,
reasoning
insurer and its
tion of
contemplates
Kratz to a lien that
payment
46(B).
only.
benefits to the insured
comes within the terms of
49, ¶ Russell,
McKnight,
225, 231,
Booth v.
70 499 U.S.
111 S.Ct.
4.
(1991).
860.
881 ¶ KAUGER, J., in part concurs and 31 Johnson asserted accident. in an automobile carrier, part. dissents Liberty Mu- against her UM a claim tual, the accident. The connection ¶ WATT, C.J., and 32 and EDMONDSON against a 46 filed Clinic COLBERT, JJ., dissent. by “an payable to Johnson any proceeds today EDMONDSON, J., that Dissenting joined we hold and Because insurer.” COLBERT, WATT, physi- subject by to a C.J. and J. indemnity stands lien, judg- court’s reverse the trial cian’s we majority’s disagree 1 I with the conclu- UM benefits be- placed that Johnson’s ment statutory physician’s that our lien is sion lien and remand of the Clinic’s yond reach against UM and would enforceable proceed in a directions to the cause with reason, solely for that but this case dissent today’s pronounce- consistent with manner and fundamental flaws which has more basiс ment.37 the small claims also must be addressed: jurisdiction subject matter
court did not have this action to enforce to hear and determine Y lien, purported per- lien was not and the according statute. fected SUMMARY jurisdic question subject matter The 46(B) clearly and The every primary and fundamental tion is place unambiguously authorize duty of this Court case and it is the on to which inquire jurisdiction and that of into its own question an insurer. We entitled from a whether or not such the trial court “seeking meaning at parties. hidden Collins v. Mid- have noted is raised 56, 6 Pipeline P.3d [in statute] variance with the used Continent Dickson, 1050, 1051, 2; v. quite fn. Dickson perilous undertaking which is is a 2; Hayhurst fn. 637 P.2d OK apt to lead to an amendment of law Hayhurst, 1966 OK to arrive at the judicial construction as it is Subject cannot be con matter legislative thought mind.”38 actual partiеs, ferred consent or waiver of statutory language plain and the Where time. and it be raised evident, will not inter- legislative purpose we Shaffer 910, 913. Ju Jeffery, 1996 OK ject phrase a word or into the statute authority by which courts is the risdiction made. choice the has alters the judicial cognizance take of and and officers the case here where the Such is Coryell, 1966 OK cases. Turk v. decide against proceeds authorizes a lien plainly power judicial 558. It is the from a claim insurer. derived courts to hear and determine officers and deciding otherwise. trial court erred judi controversy to exercise subject in ¶ 29 THE TRIAL COURT’S JUDGMENT every aspect the cause and power over cial THE RE- AND CAUSE IS IS REVERSED particular judgment power to render the PRO- MANDED DIRECTIONS TO WITH Semke, Lowry v. entered. A MANNER IN CONSISTENT Estate., CEED 861; In re Harkness’ WITH TODAY’S PRONOUNCEMENT. 329, 204 P. claims division of the district 3 The small Y.C.J., WINCHESTER, Claims Proce- court is created Small 1751-1753,
LAVENDER, HARGRAVE, OPALA, Act, §§ Supp.2003, dure O.S. *9 jurisdictional power. Maxi- TAYLOR, JJ., limits its which concur. against 295, 300; physician's Gwaltney, of a OK enforcement Davis v. 1955 820, coverage, expressly it is over- of UM 291 P.2d ruled. Appeals’ Court of Civil deci- 37. To the extent the Peoria, 48, City v. Tul- Mooney, Hundred Inc. Fugate OK CIV APP 38. Seventeen in v. 1998 sion 14, 840, sa, 843-44. 422 P.2d preclude could be construed to 882 in amounts were increased to term is defined Section 6552 of
mum values and
1, 2004;
Statutes,
$6,000.00
November
Title 36 of the Oklahoma
who is
effective
aside,
provided
assignee
as follows at the
under an
the Act
benefits available
trust,
policy,
to this case:
pertinent
times
and health insurance
accident
plan, or contract.
may
brought
following suits
be
A.The
procedure:
claims
the small
under
In those cases which are uncontest-
C.
recоvery money
ed,
1. Actions for the
attorneys
the amount of
fees allowed
tort, including
(10%)
contract or
sub-
based on
percent
exceed ten
shall not
claims,
excluding
but
or
rogation
libel
judgment.
slander,
sought
amount
in which the
may
brought
D. No action
be
under
recovered,
attorneys
exclusive of
fees
be
procedure
any alleged
the small claims
costs, does not exceed
and other court
any city, county,
or state
Hundred
Four Thousand Five
Dollars
agency,
city county
employee
or
of a
or
($4,500.00);
agency,
alleges
state
the claim
matters
replevy personal prop-
2. Actions to
incarceration,
arising
probation, pa-
from
erty
of which does not exceed
the value
community supervision.
or
role
Five Hundred
Four Thousand
Dollars
by plaintiff
E. No action
cur-
who is
($4,500.00).
possession
If
claims for
rently
any jail
person
in
in
incarcerated
or
personal property and to recover
may
brought against any per-
the state
be
alternative,
money
pled
entity
proce-
son or
under the small claims
joinder
permissible if
of claims is
neither
dure.
property
the value of the
nor the total
¶ Broadway
brought
4
Clinic
this suit to
money sought
amount of
to be recov-
statutory physician’s
enforce its claimed
lien.1
ered,
attorneys
fees and oth-
exclusive
contract, tort,
It is not an action based on
costs,
exceed Four
er
does
Thousand
benefits,
replevin
assignment
or
and it is
($4,500.00);
Five Hundred Dollars
by §
not
therefore
authorized
1751 as a mat-
3. Actions
the nature of inter-
may
ter
be heard and decided
small
pleader,
provided
as
Section 2022
brought
court.2 A
claims
case that is
title,
of this
in which the value of the
court
which has
settle the
money
subject
which is the
of such ac-
controversy
judice”
said
be “coram non
tion does not exceed Four Thousand
legally
and such a decision is
invalid. Collins
($4,500.00);
Dollars
Five Hundred
Co.,
Pipeline
v. Mid-Continent
P.3d
may
brought
be
under the
B.No action
here,
being
fn. 8. That
the situation
I
procedure by any
small claims
collection
purported judg-
would hold the trial court’s
agency,
agent,
assignee
collection
nullity.
ment a
claim,
may
except
that an action
third-party
brought
majority
an insurer or
5 Since the
of this Court does
provider
agree
administrator
a health care
that this action to enforce a lien
statute,
O.S.2001,
physician's
types
The
claims court limited
statute as to
provides: "D. The liens
for in this sec-
cap
damages); Thayer
Phillips
cases and
on
v.
be enforced
civil action in the dis-
Co.,
(cap
Petroleum
mit the (l)small claims courts do 18 Because required perfected it was id because physician’s lien enforce- have an itemized not contain by statute. It does (2) actions, physicians do not have ment claimed, only amount but of the statement statutory patients’ UM cov- lien Title 42 amount claimed. asserts the total (3) Broadway purported erage, and Clinic’s (C)(1) (2), O.S., forth the and set Section requirements comply failed to lien physician’s perfection of requirements for necessary perfection and was therefore lien, writing and provide it must be unenforceable, respectfully I dissent. contain:(1) of the an itemized statement (2) claimed; of the an identification amount lien is policy against which the
insurance (3)
asserted; of the the name and address (4) address of the the name and
physician; (5) name of the
injured person; and firm, corporation against whom
person, filed The notice must be сlaim is made. TRUCKS, and materialman’s the mechanic’s on & BRONSON TRAILERS office county Company, docket Insurance Credit General must be sent copy Petitioners/Counter-Respondents, the lien as filed and a mail to the by registered or certified known, attorney, and the party and his Sr., NEWMAN, D. Richard allegedly liable. corporation firm or person, Respondent/Counter- requirements Similar Petitioner by 42 hospital O.S. creation of a 46(C)(1). discussed, previously our decisions 17 As Compensation The Workers’ have strictly liens and construe Court, Respondent. consistently that in order for held 101,458. enforceable, No. the exact valid and lien to be creating it must terms of the statute of Oklahoma. Supreme Court ignore the cannot complied with. Courts creating a by a prescribed terms 27, 2006. June Nelson, 149, 890 lien. Balfour statu- principle 919. This of strict Malloy v. adopted in St tory construction was Center, B.R. 519
John Medical
(N.D.Okla.1999), holding where credi- did not liens
tors’ amounts statements of the
contain itemized
claimed, be- the liens were unenforceable
