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Blankenbaker v. Jonovich9/3/2002
REVERSED AND REMANDED
Thomas E. Blankenbaker, D.C., appeals from a summary judgment in favor of his former patient, Tommy Jonovich, in this dispute over the validity of a medical lien. We recently held an untimely perfected lien is not invalid when the patient had prior actual notice of the existence and amount of the lien. See Andrews v. Samaritan Health System, 201 Ariz. 379, 386-87, 33-38, 36 P.3d 57, 64-65 (App. 2001). In this case, we hold that an unperfected lien is valid against a patient who has actual notice of the lien's existence and amount. We therefore reverse and remand to the superior court for further proceedings.
On appeal from a summary judgment, we view the evidence in the light most favorable to the party against whom judgment was entered and review the entitlement to judgment de novo. See United Bank of Ariz. v. Allyn, 167 Ariz. 191, 193, 805 P.2d 1012, 1014 (App. 1990). The following statement of facts reflects that standard of review.
Dr. Blankenbaker is a licensed chiropractor who operated the VAX-D Medical Group, P.C. The corporation provided physical therapy and rehabilitation services.
Dr. David Haggard, D.C., referred Jonovich to Dr. Blankenbaker in August 1998. Dr. Haggard had been treating Jonovich for injuries resulting from an automobile collision that occurred in March 1998, but the treatment had not resolved Jonovich's injuries.
Dr. Blankenbaker agreed to treat Jonovich without immediate payment if Jonovich and his attorney granted Dr. Blankenbaker the right to recover the sums owed for treatments from any monetary recovery for Jonovich's injuries. Both Jonovich and his counsel in the personal injury matter signed Dr. Blankenbaker's "Medical Records and Doctor's Lien" form.
Jonovich eventually settled his claim against the tortfeasor. Dr. Blankenbaker claimed $4,161.82 for treatments and sought payment from Jonovich's attorney. Jonovich disputed both the existence and the amount of any debt to Dr. Blankenbaker.
When Jonovich failed to pay, Dr. Blankenbaker filed a complaint in justice court seeking payment of $4,161.82. Jonovich denied any liability and counterclaimed for a declaratory judgment that the lien was invalid. Because justice courts lack jurisdiction to issue declaratory judgments, see Ariz. Rev. Stat. ("A.R.S.") § 22-201 (2002) (justice court civil jurisdiction), the matter was transferred to superior court.
Jonovich moved for partial summary judgment, arguing that the lien was void and unenforceable. Because Dr. Blankenbaker had not followed the statutory procedures for recording and providing notice of the medical lien, he argued, no valid lien arose.
The superior court granted Jonovich's motion. The court entered judgment declaring the lien invalid and certified the judgment as final pursuant to Arizona Rules of Civil Procedure ("Ariz. R. Civ. P.") 54(b). The court also awarded costs and attorneys' fees to Jonovich pursuant to A.R.S. § 12-341.01(A)(Supp. 2001) (fees in contract claims) and Ariz. R. Civ. P. 68(d) (double costs when offer of judgment not accepted).
Dr. Blankenbaker timely appealed. He challenges the judgment declaring the lien invalid, the award of fees to Jonovich, and the denial of a motion to strike part of Jonovich's reply memorandum in support of his summary judgment motion. Our jurisdiction rests on A.R.S. § 12-2101(B) (1994).
We reverse the declaratory judgment because Dr. Blankenbaker has an enforceable statutory medical lien. This lien arose by operation of law and is not dependent on the written lien agreement. The lien is valid even though it is unperfected.
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