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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. I will be filing a lawsuit in Tippecanoe County for so many violations in a case we became involved in, including failure to contact through mail, Violation of 4th Amendment rights, Violation of Civil Rights, and so on. Even the Indiana Ombudsmen Bureau found violations and I have now received the report and they are demanding further training in Tippecanoe County. I am going to make sure they follow through!!!

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  3. I thought the purpose of the criminal justice center was to consolidate all the criminal services and get them out of downtown to clean up the place. Why in the HELL are the civil courts moving? What a burden to all the downtown law firms. Now we all get to work downtown, but then have to get in a car and COMMUTE to court? Who approved this idiocy?

  4. I drive through the neighborhood whenever I go to the City-County Building or the Federal Courthouse. The surrounding streets are all two way with only two lanes of traffic, and traffic is very slow during rush hour. I hope that enough money has been allocated to allow for improvement of the surrounding streets.

  5. I have had an ongoing custody case for 6 yrs. I should have been the sole legal custodial parent but was a victim of a vindictive ex and the system biasedly supported him. He is an alcoholic and doesn't even have a license for two yrs now after his 2nd DUI. Fast frwd 6 yrs later my kids are suffering poor nutritional health, psychological issues, failing in school, have NO MD and the GAL could care less, DCS doesn't care. The child isn't getting his ADHD med he needs and will not succeed in life living this way. NO one will HELP our family.I tried for over 6 yrs. The judge called me an idiot for not knowing how to enter evidence and the last hearing was 8 mths ago. That in itself is unjust! The kids want to be with their Mother! They are being alienated from her and fed lies by their Father! I was hit in a car accident 3 yrs ago and am declared handicapped myself. Poor poor way to treat the indigent in Indiana!

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