16 Fla. L. Weekly Supp. 333c
Online Reference: FLWSUPP 164WELLN
Insurance — Personal injury protection — Standing — Assignment is valid despite language providing that insured remains completely responsible to pay for all medical treatment
WELLNESS HEALTH ASSOCIATES, INC, Plaintiff, vs. GEICO CASUALTY COMPANY, Defendant. County Court, 9th Judicial Circuit in and for Orange County. Case No. 2008-CC-11218-O. February 2, 2009. John E. Jordan, Judge. Counsel: Coretta Anthony-Smith, Anthony-Smith Law, P.A., Orlando. Amanda Reher, Orlando.
ORDER ON DEFENDANT’S MOTION FOR FINAL SUMMARY JUDGMENT AND PLAINTIFF’S MOTION FOR PARTIAL SUMMARY JUDGMENT
The issue before the Court is whether the reported Assignment of Benefits in question gives the Plaintiff Health Care Provider standing to bring this PIP action.
The insurer, Jeff Mardi, sought medical treatment from the Plaintiff, Wellness Health Associates, Inc. as a result of a September 1st, 2007 motor vehicle accident. Mr. Mardi was insured by the Defendant, GEICO Casualty Company, for $10,000.00 in Personal Injury Protection benefits with a $1,000.00 deductible.
Mr. Mardi executed a document entitled “Acknowledgment of Liability Assignment of Benefits” on September 17, 2007 in favor of Wellness Health Associates. The document states:
The undersigned patient and/or responsible party hereby acknowledge personal responsibility and liability for all the medical services which are provided by Wellness Health Associates Inc. This personal obligation is not affected by any obligation of insurance payment is received, you are completely responsible to pay for all medical treatment.
The Plaintiff argues that Mr. Mardi assigned his benefits under the GEICO policy to Wellness Health so that Wellness Health could bill GEICO directly and receive insurance payments. Without the assignment, Wellness Health would not have rendered care. The assignment of benefits gave the Plaintiff standing to bring the instant action.
The Defendant argues that since the Assignor (Jeff Mardi) is completely responsible to pay for all medical treatment, the assignment of benefits is invalid and nothing more than a direction to pay.
Ogelsby v. State Farm Mutual Automobile Insurance Company, 781 So. 2d 469 (Fla. 5th DCA 2001) is cited by both parties in support of their Motions for Summary Judgment. Plaintiff argues that Ogelsby stands for the proposition that an unqualified assignment may contain a guarantee of payment by the Assignor and still be valid. The Defendant argues that Ogelsby is distinguishable because it dealt with an assignment in which the insured (Assignor) remained liable for any medical bills not paid by the insurer. The language in the assignment in the instant case does not limit the liability of the insured to unpaid medical bills but for all medical treatment.
The Acknowledgment of Liability Assignment of Benefits goes on to state that:
You (Wellness Health Associates, Inc) are assigned to exclusive, irrevocable right to any cause of action that exists in my favor against any insurance company or other person or entity to the extend (sic) of your bill for total services, including the exclusive, irrevocable right to receive payment for such services, make demand in my name for payments, and prosecute and receive penalties, interest, court costs, or other legally compensable amounts owed by an insurance company or other person or entity.
Standing is determined at the inception of a case. It cannot be cured after suit is filed. The Health Care Provider cannot bring an action for first party benefits unless the insured has assigned their rights to benefits under the applicable insurance policy. Progressive Exp. Ins. Co. v. McGrath Community Chiropractic, 913 So. 2d 1281 (Fla. 2d DCA 2005).
The Court finds that the Acknowledgment of Liability Assignment of Benefits is an assignment of benefits which would provide standing to the Plaintiff to bring this action. Although the assignor/insured is completely responsible to pay for all medical treatment, this language does not defeat the purpose of the Assignment of Benefits. The language of the Assignment gives to the Assignee/Plaintiff the Right to stand in the shoes of the Assignor/Insured and the Assignor does not retain any Right to enforce the contract. Leesburg Community Cancer Center v. Leesburg Regional Medical Center, Inc., 972 So. 2d 203 (Fla. 5th DCA 2007).
THEREFORE, IT IS ORDERED AND ADJUDGED the Defendant’s Motion for Final Summary Judgment dated, December 18, 2008, is hereby Denied and that the Plaintiff’s Motion for Partial Summary Judgment dated, October 29, 2008, is Granted.
