CENTRAL PALM BEACH PHYSICIANS & URGENT CARE, INC. D/B/A TOTAL MD A/A/O AHARON AZMI
v.
STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY
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Central Palm Beach Physicians & Urgent Care (Total MD) appealed a small claims judgment in favor of State Farm for unpaid PIP insurance benefits of $425.78. The court reversed, holding that State Farm's statutory obligation to pay PIP benefits was not relieved by the insured's prior bodily injury settlement because Total MD retained a subrogation right.
The court held that State Farm was not relieved of its statutory obligation to pay PIP benefits because: (1) Total MD possesses a subrogation right under section 768.76(1) as an assignee of the policy benefits; (2) section 768.76(1) prohibits collateral source offsets when a subrogation right exists; and (3) as a PIP indemnitor, State Farm must pay for reasonable and necessary medical expenses when the provider retains subrogation rights.
[1] A Personal Injury Protection (PIP) carrier's obligation to pay benefits is not extinguished by a subsequent bodily injury settlement received by the claimant.
[2] A collateral source offset is not allowed when the claimant possesses a statutory subrogation right.
Previewing 2 of 5 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“the court shall reduce the amount of such award by the total of all amounts which have been paid for the benefit of the claimant, or which are otherwise available to the claimant, from all collateral sources. [T]here shall be no reduction for collateral sources for which a subrogation or reimbursement right exists.”
Establishes the statutory framework under Florida Statute section 768.76(1) that prohibits offsets when subrogation rights exist
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Join FLexlaw to unlock all legal intelligenceAharon Azmi received medical treatment and assigned all rights and benefits under his State Farm insurance policy to Total MD. State Farm refused to p…
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PER CURIAM.
Appellant, Central Palm Beach Physicians & Urgent Care, Inc. d/b/a Total MD a/a/o Aharon Azmi ("Total MD"), appeals the trial court's Final Judgment in favor of Defendant/Appellee, State Farm Mutual Automobile Insurance Company ("State Farm"). The underlying action is a small claims matter arising from the breach of contract for insurance benefits in the amount of $425.78. Total MD argues on appeal that the trial court erred in ruling that State Farm was relieved of its statutory obligation to pay benefits because of Azmi's prior bodily injury settlement. Total MD further contends that a Personal Injury Protection ("PIP") carrier's obligation as payor is not extinguished by any secondary payment, including a bodily injury settlement. We find that the trial court erred in determining that State Farm was relieved of its statutory obligation to pay benefits because of Azmi's prior bodily injury settlement.
Pursuant to section 768.76(1), Florida Statutes (2014), "the court shall reduce the amount of such award by the total of all amounts which have been paid for the benefit of the claimant, or which are otherwise available to the claimant, from all collateral sources. [T]here shall be no reduction for collateral sources for which a subrogation or reimbursement right exists." See also Bruner v. Caterpillar, Inc., 627 So. 2d 46, 47 (Fla. 1st DCA 1993) ("a collateral source offset pursuant to section 768.76(1) is not allowed due to the statutory subrogation right which pertains under section 440.39(a), as section 768.76 does not imbue a wrongful tortfeasor with the benefit of a plaintiff's settlement of a third party claim with a negotiated subrogation waiver"). A PIP insurer is an "indemnitor against liability for reasonable and necessary medical expenses incurred by persons the PIP or medpay provisions cover." State Farm Mutual Automobile Insurance Company v. Care Wellness Center LLC, 240 So. 3d 22, 27 (Fla. 4th DCA 2018) (citing Allstate Ins. Co. v. Kaklamanos, 843 So. 2d 885, 898 (Fla. 2003)).
Because Azmi assigned all rights and benefits under his State Farm insurance policy to Total MD, Total MD possesses a subrogation right and can therefore collect the full amount owed in accordance with section 768.76(1). Furthermore, because State Farm is a PIP indemnitor and Total MD retains a right of subrogation to benefits, the bodily injury settlement does not relieve
N 1 Azmi's prior counsel made a $600.00 payment to Total MD towards Azmi's medical bills, as well as an additional $400.00 payment for Azmi's July 1, 2014 treatment.
Page 2 of 3 State Farm of its statutory obligation to pay for reasonable and necessary medical expenses incurred by Amzi. Thus, we reverse the trial court's final judgment in favor of State Farm.
Total MD also filed a Motion to Tax Appellate Attorney's Fees based upon section 627.428, Florida Statutes, which allows for the recovery of fees "[u]pon the rendition of a judgment or decree by any of the courts of this state against an insurer and in favor of any named or omnibus insured or the named beneficiary under a policy or contract executed by the insurer." See also United Auto. Ins. Co. v. Perez, 990 So. 2d 607, 608 (Fla. 3d DCA 2008) (holding that if plaintiff prevails upon remand, then she will be entitled to attorney's fees and costs under section 627.428). We find that Total MD is entitled to appellate attorneys fees if it prevails on remand.
Accordingly, we REVERSE the trial court's final judgment in favor of State Farm and REMAND for further proceedings. Total MD's Motion to Tax Appellate Attorney's Fees is GRANTED, conditioned on Total MD prevailing on remand. If Total MD prevails on remand, then the trial court shall assess a reasonable amount of appellate attorney's fees.
NUTT, CURLEY, and SASSER, JJ. concur. Page 3 of 3 IN THE CIRCUIT COURT OF THE FIFTEENTH JUDICIAL CIRCUIT IN AND FOR PALM BEACH COUNTY, FLORIDA
CENTRAL PALM BCH PHYS & URGENT CARE, INC. A/BA TOTAL MD, A FLORIDA CORP. (a/a/o AZMI, AHARON) Appellant,
V.
STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY Appellee.
APPELLATE DIVISION (CIVIL): AY CASE NO.: 502017AP000041CAXXMB L.T. NO.: 502015SC006116XXXXMB
Opinion/Decision filed: MAR 25 2019
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Citator
Authorities Cited
- Allstate Ins. Co. v. Keely Kaklamanos, 843 So. 2d 885 (Fla. 2003)
- State Farm Mut. Auto. Ins. Co. v. Care Wellness Ctr., LLC, 240 So. 3d 22 (Fla. 4th DCA 2018)
- Michael E. Bruner and wife v. Caterpillar, Inc., 627 So. 2d 46 (Fla. 1st DCA 1993)
- United Auto. Ins. Co. v. Rosaida Perez, 990 So. 2d 607 (Fla. 3d DCA 2008)