23 Fla. L. Weekly Supp. 253a
Online Reference: FLWSUPP 2303SCHOInsurance — Personal injury protection — Standing — Assignment — Validity — Document that assigns medical and surgical benefits from insurer, does not assign rights under policy, is revocable by insured, and holds insured financially responsible for payments, is direction to pay and not valid assignment
ORTHOPEDIC SPECIALISTS, LLP (a/a/o Robert Scholz), Plaintiff, vs. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Defendant. County Court, 6th Judicial Circuit in and for Pinellas County, Civil Division. Case No. 13-003589-SC. June 24, 2014. Honorable Walter Fullerton, Judge. Counsel: William Foman, Dietsch & Wright, P.A., Lake Worth, for Plaintiff. Dyana L. Sisti, Reynolds, Parrino, Spano & Shadwick, P.A., Saint Petersburg, for Defendant.
FINAL SUMMARY JUDGMENT
This cause to be heard before this Court on Defendant’s Motion for Summary Judgment and Plaintiff’s Cross Motion for Summary Judgment and this Court having heard argument, reviewed the pleadings and case law being otherwise advised of the premises, it is herby Ordered and Adjudged as follows,
1. Plaintiff sued Defendant for breach of contract for failure to pay Personal Injury Protection Benefits. Defendant filed a Motion for Summary Judgment arguing Plaintiff lacks standing due to an invalid assignment of benefits. Plaintiff filed a Cross Motion for Summary Judgment on the same issue.
2. Plaintiff claims a valid assignment of benefits based on a document titled “Authorization of Treatment & Assignment of Benefits” signed by the insured patient and dated July 17, 2012, Defendant argues this is merely a direction to pay as it does not assign all the insureds/patient’s rights and benefits under the policy of insurance.
3. The Authorization of Treatment & Assignment of Benefits states, in patient part, as follows,
I authorize treatment and hereby assign all medical and/or surgical benefits, to include major medical benefits to which I am entitled from my insurance company to: ORTHOPEDIC SPECIALISTS. This assignment will remain in effect until revoked by me in writing. A photocopy of this assignment is to be considered valid as an original. I understand that I am financially responsible for all charges whether or not paid by said insurance. . .
4. An assignment is “a transfer or setting over of property or of some right or interest therein, from one person to another. It is the act by which one person transfers to another, or causes to vest in another, his right of property or interest therein. State Farm Fire and Casualty Co. v. Ray, 556 So. 2d 811, 812 (Fla 5th DCA 1990). An assignment transfers to the assignee all the interest of the assignor under the assigned contract. Id. 556 So. 2d at 813.
5. In the present case, the document signed by the insured/patient only “assigns” her medical and/or surgical benefits from her insurance company. It does not assign her rights under her policy of insurance, which would include her right to sue her insurance company. Moreover, the document states the “assignment” remains in effect until revoked by the insured/patient in writing. As the insured/patient retained the right to revoke the “assignment,” she did not transfer or vest her rights under or interest in the policy of insurance. Moreover, the “assignment” still holds the insured/patient financially responsible for the payments. If the insured/patient assigned all her rights under the policy to the medical provider then she would not continue to be responsible for payment as the medical provider would have the right to sue under the policy.
6. As such, this is as Defendant claims, it is a direction to pay which permits the insurance company to pay the PIP benefits directly to the medical provider; however, the authorization does not give Plaintiff the rights and interest of the insured/patient.
It is therefore Ordered and Adjudged that Defendant’s Motion for Summary Judgment is GRANTED. It is further Ordered and Adjudged that Plaintiff, Orthopedic Specialists, LLP a/a/o Robert Scholz, shall take nothing from this action and Defendant, State Farm Mutual Automobile Insurance Company, shall go hence without day.
