UNITED AUTOMOBILE INSURANCE COMPANY
v.
BEST AMERICAN DIAGNOSTIC CENTER, INC., A/A/O SANDRA MUHLIG
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United Automobile Insurance Company appeals a summary judgment in favor of Best American Diagnostic Center, Inc., which sought PIP benefits for medical services provided to an insured. The trial court applied offensive collateral estoppel to prevent United Auto from challenging the reasonableness of an MRI charge based on prior jury findings in unrelated cases. The appellate court reversed, holding that the identity-of-parties requirement for collateral estoppel was not satisfied because the medical provider's identity derived from different assignors in each case.
The court reversed the summary judgment, holding that collateral estoppel does not apply because the identity-of-parties element is not satisfied. As an assignee, the medical provider's identity changes from case to case based on its different assignors, meaning the provider is not the same party in each lawsuit despite being the same entity.
[1] When a medical provider sues in its capacity as an assignee of different insureds in separate cases, the identity of parties requirement for offensive collateral estoppel…
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Court's rationale for finding collateral estoppel inapplicable
Sandra Muhlig, insured by United Auto, was involved in an accident and received an MRI from Best American Diagnostic Center, which she assigned her ri…
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Opinion filed February 23, 2022. Not final until disposition of timely filed motion for rehearing.
________________ No. 3D21-813 Lower Tribunal No. 12-2847 SP-23 ________________
United Automobile Insurance Company,
Appellant,
vs.
Best American Diagnostic Center, Inc., a/a/o Sandra Muhlig, Appellee.
An Appeal from the County Court for Miami-Dade County, Ayana Harris, Judge. Michael J. Neimand, for appellant. David B. Pakula, P.A., and David B. Pakula (Pembroke Pines); Marks & Fleischer, P.A., and Gary Marks (Fort Lauderdale), for appellee. Before EMAS, GORDO and BOKOR, JJ. EMAS, J.
Appellant and defendant below, United Automobile Insurance Company, challenges a final summary judgment entered in favor of appellee and plaintiff below, medical provider Best American Diagnostic Center, Inc., as assignee of Sandra Muhlig.
For purposes of this appeal, the relevant facts—save one—are undisputed. Ms. Muhlig, who was insured by United Auto, was involved in an accident. Muhlig received treatment from, and assigned her rights to, Best American Diagnostic, which later filed a complaint against United Auto for breach of contract and for PIP benefits arising from that accident.
An issue in dispute was the “reasonableness” of the amount charged for an MRI that Best American Diagnostic performed on Muhlig. See §§ 627.736(1)(a), (5)(a), Fla. Stat. (2010).
United Auto disputed the reasonableness of the amount charged by Best American Diagnostic. In response, Best American Diagnostic contended United Auto was precluded by principles of offensive collateral estoppel from contesting the reasonableness of the MRI procedure because, in prior unrelated PIP lawsuits between Best American Diagnostic and United Automobile, one or more juries had made an affirmative finding that the amount charged for the MRI procedure was reasonable. United Auto asserted that the application of collateral estoppel was improper because the parties were not identical: in each of those prior PIP lawsuits, Best American Diagnostic received an assignment from a different insured of United Auto.
The trial court agreed with Best American Diagnostic, and applied collateral estoppel offensively to preclude United Auto from challenging the reasonableness of the amount charged for the MRI procedure performed on Muhlig.
We recently decided this precise issue in three consolidated appeals (3D21-205, 3D21-272 and 3D21-320) involving United Automobile Insurance Company and Millennium Radiology, LLC. See United Auto.
Insur. Co. v. Millennium Radiology, LLC, 47 Fla. L. Weekly D175, 2022 WL 107604 (Fla. 3d DCA Jan. 12, 2022), where we held:
The real party in interest is Millennium as an assignee, not in its individual capacity as the provider of the medical services for each insured. See Nationwide Terminals, Inc. v. MC Constr. Grp., Inc., 964 So. 2d 705, 706 (Fla. 3d DCA 2007). Millennium’s “identity” is not the same in each of these cases against United Auto; Millennium draws its identity from its assignor from case to case. The identity element of collateral estoppel, therefore, is not satisfied. See E.C. v. Katz, 731 So. 2d 1268, 1269 (Fla. 1999) (holding that, in Florida, identity and mutuality of parties – that both parties be identical and be mutually bound by the prior judgment – must be established for collateral estoppel to apply); see also Nationwide Terminals, Inc., 964 So. 2d at 706 (holding that a party suing in the capacity of an assignee is not a party suing in its individual capacity).
Id. at *3.1 While we recognize the trial court did not have the benefit of that opinion at the time it entered judgment in the instant case,2 we nevertheless reverse the final summary judgment because the “real party in interest is [Best American Diagnostic] as an assignee, not in its individual capacity as the provider of the medical services for each insured.” Id. Under such circumstances, there was no identity of the parties and thus, the application of collateral estoppel was erroneous.
Reversed and remanded.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Authorities Cited
- Lowe v. The Honorable Joseph E. Price, 437 So. 2d 142 (Fla. 1983)
- E.C. v. Lorne Katz, M.D., 731 So. 2d 1268 (Fla. 1999)
- The Bank OF NEW York Mellon Corp. v. Anton, 230 So. 3d 502 (Fla. 3d DCA 2017)
- Nationwide Terminals, Inc. v. MC Constr. Grp., Inc., 964 So. 2d 705 (Fla. 3d DCA 2007)
- United Auto. Ins. Co. v. Millennium Radiology, LLC, 47 Fla. L. Weekly D175 (Fla. 3d DCA 2022)
- United Auto. Ins. Co. v. Millennium Radiology, LLC, 47 Fla. L. Weekly D175 (Fla. 3d DCA 2022)