Lee Memorial Health System v. Progressive Select InsuranceLee Memorial Health System v. Progressive Select Insurance
This case is before the Court on appeal from a decision of the Second District Court of Appeal, Lee Memorial Health System v. Progressive Select Insurance Co., 230 So. 3d 558 (Fla. 2d DCA 2017), which held chapter 2000-439, section 18, Laws of Florida, (“the LMHS Lien Law”) invalid under the Florida Constitution. This Court has jurisdiction of the appeal under
The Second District held that the LMHS Lien Law violates
FACTS AND PROCEDURAL HISTORY
Lee Memorial Health System is a “public health care system in Lee County” created by chapter 2000-439, Laws of Florida, and is the beneficiary of certain rights against private citizens and companies under the LMHS Lien Law. Lee Mem’l Health Sys. v. Progressive Select Ins. Co., 230 So. 3d 558, 559 (Fla. 2d DCA 2017). Specifically, the LMHS Lien Law entitles Lee Memorial to liens for its charges for healthcare services, defines what actions constitute impairment of those liens, and creates a cause of action to recover damages for impairment of those liens by others—including persons, firms, or corporations who are neither the providers nor the beneficiaries of the healthcare services at issue. To these ends, the LMHS Lien Law provides as follows:
Lee Memorial Health System shall be entitled to a lien for all reasonable charges for hospital, physician, or other health care services provided by the Lee Memorial Health System to ill or injured persons, upon the proceeds of all causes of action, suits, claims, counterclaims, and demands accruing to said persons or to their legal representatives, and upon all judgments, settlements, and settlement agreements rendered or entered into by virtue thereof, on account of injuries giving rise to such causes of action, suits, claims,
counterclaims, demands, judgments, settlements, or settlement agreements, which injuries shall have necessitated such hospital, physician, and other services provided to such ill or injured persons. . . . . . . .
. . . No release or satisfaction of any cause of action, suit, claim, counterclaim, demand, judgment, settlement, or settlement agreement shall be valid or effectual as against the lien of Lee Memorial Health System unless the lienholder shall join therein or execute a release of its lien prior to the payment of any proceeds thereof. Any acceptance of a release or satisfaction of any cause of action, suit, claim, counterclaim, demand, judgment, settlement, or settlement agreement in the absence of a release or satisfaction of the lien of Lee Memorial Health System shall prima facie constitute an impairment of such lien and the lienholder shall be entitled to a cause of action for damages against any and all persons, firms, or corporations giving or accepting such release or satisfaction, or paying or accepting the proceeds from the same. In such action, Lee Memorial Health System may recover the full amount of its charges for such hospital, physician, or other health care services; regardless of the amount of proceeds paid or received in impairment of its lien.
Ch. 2000-439, § 18, Laws of Fla.
The constitutional challenge to this law arose out of a lawsuit filed by Lee Memorial against Progressive Select Insurance Company for the impairment of two liens Lee Memorial had filed based on the provision of medical treatment to an injured person. Lee Memorial Health Sys., 230 So. 3d at 559-60. Lee Memorial alleged that Progressive impaired these liens by settling a claim with the injured person on behalf of Progressive’s insured without the knowledge or consent of Lee Memorial and without the satisfaction or release of Lee Memorial’s liens. Id. at 560.
Lee Memorial appealed the trial court’s decision to the Second District, arguing error as to the issue decided. Progressive responded to this argument and further requested that the Second District address the damages issue in the event it found the LMHS Lien Law constitutional. The Second District affirmed the trial court, not only because it determined that the LMHS Lien Law violates
ANALYSIS
Lee Memorial argues that the Second District erred in addressing the contract-impairment issue because that issue was not raised to the Second District and the Attorney General was not served with proper notice as to that issue under
A. Notice Requirement of Rule 1.071
A party that files a pleading, written motion, or other document drawing into question the constitutionality of a state statute or a county or municipal charter, ordinance, or franchise must promptly
(a) file a notice of constitutional question stating the question and identifying the document that raises it; and
(b) serve the notice and the pleading, written motion, or other document drawing into question the constitutionality of a state statute or a county or municipal charter, ordinance, or franchise on the Attorney General or the state attorney of the judicial circuit in which the action is pending, by either certified or registered mail.
Failure to comply with
B. Article III, section 11(a)(9)
The constitutional provision that controls the outcome of this proceeding is
There shall be no special law or general law of local application pertaining to . . . creation, enforcement, extension or impairment of liens based on private contracts . . . .
Both the constitutionality of a statute and its meaning are issues of law that this Court reviews de novo. Shands Teaching Hosp. & Clinics, Inc. v. Mercury Ins. Co., 97 So. 3d 204, 209 (Fla. 2012).
The determination of the meaning of a constitutional provision begins with its plain language. Lawnwood Med. Ctr., Inc. v. Seeger, 990 So. 2d 503, 510-11 (Fla. 2008). “If that language is clear, unambiguous, and addresses the matter in issue, then it must be enforced as written.” Id. at 511 (quoting Fla. Soc’y of Ophthalmology v. Fla. Optometric Ass’n, 489 So. 2d 1118, 1119 (Fla. 1986)). If the language is ambiguous, this Court “must endeavor to construe the constitutional provision in a manner consistent with the intent of the framers and the voters.” Ford v. Browning, 992 So. 2d 132, 136 (Fla. 2008).
Widely circulated dictionaries are helpful for identifying the plain meaning of constitutional language. Lawnwood, 990 So. 2d at 511; Myers v. Hawkins, 362 So. 2d 926, 930 (Fla. 1978) (noting that the Court “initially consult[ed] widely circulated dictionaries, to see if there exists some plain, obvious, and ordinary meaning for the words or phrases approved for placement in the [c]onstitution”). Legal dictionaries can also be helpful. Lawnwood, 990 So. 2d at 511. However, because the constitution is “an instrument from the people,” widely circulated dictionaries can be even more indicative of the constitution’s meaning than legal dictionaries are. See id. at 512 (“[U]nless the text of a constitution suggests that a technical meaning is intended, words used in the constitution should be given their usual and ordinary meaning because such is the meaning most likely intended by the people who adopted the constitution.”). For the same reason, this Court takes into account the “common sense understanding” of words used in the constitution. See Lawnwood, 990 So. 2d at 512.
Webster’s Dictionary contains a multitude of definitions for “private” and “public.” The most pertinent definitions, based on the usage examples provided, indicate that “private” has the following meanings: (1) “intended for or restricted to the use of a particular person or group or class of persons: not freely available to the public,” as in a private party; (2) “affecting the interests of a particular person, class or group of persons, or locality: not general in effect,” as in a private act; and (3) “not known in public or carried on in public: not open,” as in private negotiations or a private understanding. Private, Webster’s Third New
The most pertinent definitions of “public” include the following: (1) “of, relating to, or affecting the people as an organized community,” as in a public holiday; (2) “authorized or administered by or acting for the people as a political entity,” as in public expenditures; (3) “provided for, used by, or containing the records of a government agency,” as in public documents; (4) “accessible to or shared by all members of the community,” as in a public hearing; (5) “supported by or for the benefit of the people as a whole,” as in public education or public welfare agencies; and (6) “providing services to the people on a business basis under some degree of civic or state control,” as in the work of public agents on a railroad. Public, Webster’s Third New International Dictionary 1836 (unabr. 1981). Black’s Law Dictionary defines “public” as follows:
Pertaining to a state, nation, or whole community; proceeding from, relating to, or affecting the whole body of people or an entire community. Open to all; notorious. Common to all or many; general; open to common use. Belonging to the people at large; relating to or affecting the whole people of a state, nation, or community; not limited or restricted to any particular class of the community.
Lee Memorial contends that the contract must be public because Lee Memorial is a public entity. However, the term “private” in this constitutional provision modifies the contract, not the parties who have entered the contract. The subject matter of the contract is the provision of and payment for medical services, not the administrative operation of Lee Memorial.
The available definitions of “private” and “public” that are most reasonably applied to a contract, along with common sense, show that the contract at issue is private. The provision of medical services to the patient in this case and his agreement to pay for those services upon entry to the hospital are matters that are generally “intended for or restricted to the use of a particular person” and “not freely available to the public.” Private, Webster’s Third New International Dictionary 1804-05 (unabr. 1981). Like private negotiations, the performance of this contract was “not known in public or carried on in public.” Id.3 Moreover, as
in Mercury Insurance Co. of Florida v. Shands Teaching Hospital & Clinics, Inc., 21 So. 3d 38, 39 (Fla. 1st DCA 2009), quashed on other grounds, 97 So. 3d 204 (Fla. 2012), where a similar law was found unconstitutional, the assets to which the liens attached were not “the public’s assets, but rather . . . the assets of the patient.” In other words, the contract itself was to be funded by private assets. Thus, the contract at issue is a private contract.
Our conclusion that the contract at issue is private due to the subject matter, rather than the nature of one of the parties, as Lee Memorial would have us decide, is also consistent with the way in which the term “private contract” has been used in case law. See Ass’n. for Retarded Citizens, Dade County v. State, Dep’t of Health & Rehabilitative Servs., 619 So. 2d 452, 454 (Fla. 3d DCA 1993) (referring to a settlement agreement between a private citizen and a state agency concerning a lawsuit by the citizen against the agency as “private”); Palm Beach County Classroom Teacher’s Ass’n v. Sch. Bd. of Palm Beach County, 411 So. 2d 1375, 1376 (Fla. 4th DCA 1982) (stating that “the provisions of a private agreement entered into by public bodies,” referring to a teachers’ union and a school board, “cannot be used to circumvent the requirements” of the Government in the Sunshine Act); Mills v. Doyle, 407 So. 2d 348, 350-51 (Fla. 4th DCA 1981)
Our conclusion that the nature of a contract as public or private is not defined by the identity of a single party, but by the nature of the subject matter, is further supported by examples of case law identifying contracts as “public contracts” in cases involving competitive bidding for public works projects. See, e.g., Miami-Dade County Sch. Bd. v. J. Ruiz Sch. Bus Serv., Inc., 874 So. 2d 59, 61 (Fla. 3d DCA 2004) (“Florida’s competitive bid statutes were enacted for the benefit and protection of the public in that they are intended to ensure that the public receives the lowest and best price for goods and services and that public contracts are not awarded in an arbitrary and capricious manner.”); State v. Dinsmore, 308 So. 2d 32, 37 (Fla. 1975) (acknowledging, in a case concerning a criminal charge against a public official for unlawful interest in a public contract,
[T]he concept of a “public contract” seems to exist solely within the framework of government procurement and almost always has to do with procurement of materials, supplies, and services. See, e.g.,
Public Contracts, 41 U.S.C. §§ 3101–4712 (2011) (establishing federal procurement policy and contracting procedure); Miami–Dade Cty. Sch. Bd. . . ., 874 So. 2d [at] 61 . . . ; Intercontinental Props., Inc. v. Dep’t of Health & Rehab. Servs., 606 So. 2d 380, 385-86 (Fla. 3d DCA 1992) (discussing public policy considerations pertaining to public contracts); Satellite Television Eng’g, Inc. v. Dep’t of Gen. Servs., 522 So. 2d 440 (Fla. 1st DCA 1988) (discussing the competitive bidding process for public contracts). In short, to the extent that the term “public contract” has been defined, that definition appears to be a contract between a government entity and a private party to perform a task (such as construction) or for the provision of equipment, goods, or services that is financed by public funds.
Lee Mem’l Health Sys., 230 So. 3d at 562-63. Indeed, one writer has observed that “[t]he vast body of literature on ‘public contracts’ tends to support” the view that “what distinguishes a public contract from a private one is whether the contract involves a public service or project,” noting that “[s]uch contracts are extensively regulated and publicly scrutinized.” Meta Calder, Florida’s Hospital Lien Laws, 21 Fla. ST. U. L. Rev. 341, 361 (1993). She concludes that, “If this . . . definition is correct, then contracts that form the basis for hospital liens are private.” Id. at 361-62. We find this definition correct, based on our review of the plain language of the constitution, which is supported by examples of the manner in which that
CONCLUSION
For the reasons explained above, we affirm the Second District’s ruling that the LMHS Lien Law is unconstitutional under
It is so ordered.
CANADY, C.J., and PARIENTE, QUINCE, POLSTON, and LABARGA, JJ., concur.
LEWIS, J., concurs in result only.
ANY MOTION FOR REHEARING OR CLARIFICATION MUST BE FILED ON OR BEFORE DECEMBER 27, 2018. A RESPONSE TO THE MOTION FOR REHEARING/CLARIFICATION MAY BE FILED ON OR BEFORE JANUARY 2, 2019. NOT FINAL UNTIL THIS TIME PERIOD EXPIRES TO FILE A REHEARING/CLARIFICATION MOTION AND, IF FILED, DETERMINED.
Second District - Case No. 2D14-5925
(Lee County)
Hala Sandridge of Buchanan Ingersoll & Rooney PC, Tampa, Florida, for Appellant
Valerie A. Dondero of Kubicki Draper, P.A., Miami, Florida, for Appellee
David A. Wallace of Bentley & Bruning, P.A., Sarasota, Florida, for Amicus Curiae Safety Net Hospital Alliance of Florida
Angela C. Flowers and Bretton C. Albrecht of Kubicki Draper, P.A., Ocala, Florida, for Amicus Curiae Geico General Insurance Company
John P. Joy and Sara M. Sandler of Walton Lantaff Schroeder & Carson LLP, Fort Lauderdale, Florida, for Amicus Curiae Allstate Insurance Company