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COA: Debt collector not entitled to attorney fees under agreement

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A company assigned to collect on a woman’s medical debt cannot also collect attorney fees, the Indiana Court of Appeals ruled Friday. The agreement the woman signed with a medical provider that allows for the collection of attorney fees did not apply to the physician group which assigned her debt to the collections company.

Tina Gray received medical services from physicians employed by Emergency Medicine of Indiana P.C. while she was a patient at Dupont Hospital. During her hospital stay she entered into an agreement with Dupont regarding payment. An unpaid $300 balance to Emergency Medicine was assigned to DECA Financial Services for collection. DECA sought the unpaid balance, $150 in attorney fees and $94 in court costs. The small claims judge ordered Gray to pay the unpaid balance and court costs, but found the agreement she entered into with the hospital did not give Emergency Medicine, a separate entity from the hospital, the ability to recover attorney fees.

The Court of Appeals affirmed in DECA Financial Services, LLC v. Tina Gray, 02A04-1311-SC-595.

“DECA asserts that Emergency Medicine’s employees are “facility-based physicians” and that Gray and Dupont’s intent to make Emergency Medicine a third party beneficiary of the attorney’s fees provision is evidenced by the inclusion of ‘facility-based physicians’ in Paragraph 1. Specifically, DECA contends that, because ‘Gray agrees to authorize payment “directly to ... any facility-based physicians”’ in Paragraph 1, Emergency Medicine is inherently authorized to recover attorney’s fees for non-payment under Paragraph 2,” Judge Cale Bradford wrote.

“DECA’s contention overlooks the context of Paragraph 1, which states: ‘I hereby assign and authorize payment directly to the Facility, and to any facility-based physician, all insurance benefits ... .’ Thus, even if we were to conclude that Emergency Medicine is a third party beneficiary under Paragraph 1, its third party benefits would be limited to the provisions of that paragraph. Nothing in the language of Paragraph 1 indicates an intent to make Emergency Medicine a third party beneficiary under Paragraph 2. Therefore, we conclude that the agreement does not entitle Emergency Medicine to attorney’s fees.”



 

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  1. Call it unauthorized law if you must, a regulatory wrong, but it was fraud and theft well beyond that, a seeming crime! "In three specific cases, the hearing officer found that Westerfield did little to no work for her clients but only issued a partial refund or no refund at all." That is theft by deception, folks. "In its decision to suspend Westerfield, the Supreme Court noted that she already had a long disciplinary history dating back to 1996 and had previously been suspended in 2004 and indefinitely suspended in 2005. She was reinstated in 2009 after finally giving the commission a response to the grievance for which she was suspended in 2004." WOW -- was the Indiana Supreme Court complicit in her fraud? Talk about being on notice of a real bad actor .... "Further, the justices noted that during her testimony, Westerfield was “disingenuous and evasive” about her relationship with Tope and attempted to distance herself from him. They also wrote that other aggravating factors existed in Westerfield’s case, such as her lack of remorse." WOW, and yet she only got 18 months on the bench, and if she shows up and cries for them in a year and a half, and pays money to JLAP for group therapy ... back in to ride roughshod over hapless clients (or are they "marks") once again! Aint Hoosier lawyering a great money making adventure!!! Just live for the bucks, even if filthy lucre, and come out a-ok. ME on the other hand??? Lifetime banishment for blowing the whistle on unconstitutional governance. Yes, had I ripped off clients or had ANY disciplinary history for doing that I would have fared better, most likely, as that it would have revealed me motivated by Mammon and not Faith. Check it out if you doubt my reading of this, compare and contrast the above 18 months with my lifetime banishment from court, see appendix for Bar Examiners report which the ISC adopted without substantive review: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS

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