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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. Hail to our Constitutional Law Expert in the Executive Office! “What you’re not paying attention to is the fact that I just took an action to change the law,” Obama said.

  2. What is this, the Ind Supreme Court thinking that there is a separation of powers and limited enumerated powers as delegated by a dusty old document? Such eighteen century thinking, so rare and unwanted by the elites in this modern age. Dictate to us, dictate over us, the massess are chanting! George Soros agrees. Time to change with times Ind Supreme Court, says all President Snows. Rule by executive decree is the new black.

  3. I made the same argument before a commission of the Indiana Supreme Court and then to the fedeal district and federal appellate courts. Fell flat. So very glad to read that some judges still beleive that evidentiary foundations matter.

  4. KUDOS to the Indiana Supreme Court for realizing that some bureacracies need to go to the stake. Recall what RWR said: "No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth!" NOW ... what next to this rare and inspiring chopping block? Well, the Commission on Gender and Race (but not religion!?!) is way overdue. And some other Board's could be cut with a positive for State and the reputation of the Indiana judiciary.

  5. During a visit where an informant with police wears audio and video, does the video necessary have to show hand to hand transaction of money and narcotics?

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