10 Fla. L. Weekly Supp. 402b
Insurance — Personal injury protection — Standing — Assignment — Validity — Assignment qualified by reservation of liability by insured is, nonetheless, a valid assignment — Failure of document to state that transfer is irrevocable does not affect validity — Once patient signs document giving medical provider the right to collect and medical services are rendered, assignment is irrevocable as to benefits for rendered services
SOUTH FLORIDA ORTHOPAEDIC, LLP, Appellant, vs. LIBERTY MUTUAL INSURANCE COMPANY, Appellee. Circuit Court, 17th Judicial Circuit (Appellate) in and for Broward County. Case No. 02-16239 (07). L.C. Case No. 01-30513(49). March 5, 2003. Order Denying Motion for Rehearing. March 25, 2003. David Krathen, Judge. Counsel: Robert C. Buschel, Ft. Lauderdale. Janis Brustares Keyser, West Palm Beach.
OPINION
The Appellant health care provider seeks review of an order of the trial court dismissing its complaint against the Defendant insurer. The trial court based its ruling on a lack of standing, due to a finding that the patient insured’s “Assignment of Benefits” did not constitute an assignment, because there was “no intent of irrevocability and/or transfer of legal rights.”
The validity of an assignment of insurance proceeds is a question of law. Oper v. Air Control Products, Inc. of Miami, 174 So.2d 561 (Fla. 3rd DCA 1965). The test of whether an agreement constitutes an assignment is whether the debtor would be justified in paying the debt to the assignee. Trak Microwave Corp. v. Medaris Management, Inc., 236 So.2d 189 (Fla. 4th DCA 1970). The language of the agreement in question definitely meets that test. The document constitutes an assignment as a matter of law. The fact that the assignment is qualified by a reservation of liability by the patient insured does not alter that fact. Oglesby v. State Farm Mutual Automobile Ins. Co., 781 So.2d 469 (Fla. 5th DCA 2001).
The failure of the document to say that the transfer is irrevocable does not affect the validity of the assignment. When a patient signs a document giving a medical provider the right to collect the patient’s insurance proceeds for services and the medical services are rendered, the assignment is irrevocable as to the benefits for the rendered services. Rittman v. Allstate Ins. Co., 727 So.2d 391 (Fla. 1st DCA 1999) and State Farm Fire and Casualty Co. v. Ray, 556 So.2d 811 (Fla. 5th DCA 1990). Accordingly, the Order under review is REVERSED and the cause REMANDED for further proceedings consistent herewith.
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ORDER
THIS CAUSE having come on to be considered on Defendant’s Motion for re-hearing and the Court having considered argument of counsel, and being otherwise advised in the Premises, it is hereupon,
ORDERED AND ADJUDGED said Motion be, and the same is hereby DENIED.
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