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Atlanta Casualty Co. v. Open MRI of Pinellas

5/18/2005

Atlanta Casualty Company (Atlanta Casualty) appeals a non-final order granting class certification and appointing Open MRI of Pinellas, Inc. (Open MRI) as the class representative in an action filed by Open MRI against Atlanta Casualty seeking payment of certain no-fault insurance benefits. We conclude that Open MRI is an improper class representative for the class as defined and, therefore, reverse and remand for further proceedings.


In its class action complaint, Open MRI alleged that it provided magnetic resonance imaging (MRI) services to a person insured by Atlanta Casualty and, pursuant to a written assignment, sought payment for the MRI under the provisions of section 627.736(5)(b)(5), Florida Statutes (2001), which states in relevant part:


Effective upon this act becoming a law [i.e., June 19, 2001] and before November 1, 2001, allowable amounts that may be charged to a personal injury protection insurance insurer and insured for magnetic resonance imaging services shall not exceed 200 percent of the allowable amount under Medicare Part B for year 2001, for the area in which the treatment was rendered. Beginning November 1, 2001, allowable amounts that may be charged to a personal injury protection insurance insurer and insured for magnetic resonance imaging services shall not exceed 175 percent of the allowable amount under Medicare Part B for year 2001, for the area in which the treatment was rendered, adjusted annually by an additional amount equal to the medical Consumer Price Index for Florida, except that allowable amounts that may be charged to a personal injury protection insurance insurer and insured for magnetic resonance imaging services provided in facilities accredited by the American College of Radiology or the Joint Commission on Accreditation of Healthcare Organizations shall not exceed 200 percent of the allowable amount under Medicare Part B for year 2001, for the area in which the treatment was rendered, adjusted annually by an additional amount equal to the medical Consumer Price Index for Florida.


(Emphasis added). The complaint alleged that Atlanta Casualty failed to pay the "annual Florida medical consumer price index increase" as required by the statute and requested that Open MRI be permitted to represent a class of all those similarly situated who had also been refused full payment for MRI services. Atlanta Casualty moved to dismiss the complaint arguing that Open MRI failed to attach or identify the "medical Consumer Price Index for Florida" and that because there is no such index in Florida, it is impossible to determine what amount must be used to adjust any payment under the statute. Thus, that portion of the statute must be declared inoperative and Atlanta Casualty's nonperformance should be excused. The trial court denied Atlanta Casualty's motion to dismiss and scheduled a hearing on Open MRI's motion for class certification. Atlanta Casualty filed its answer and asserted as an affirmative defense: "Section 627.736(5)(b)(5), Fla. Stat., as construed by Plaintiff would require the performance of an impossible act inasmuch as there is no 'medical Consumer Price Index for Florida.' The law cannot require the performance of an impossible act."


Both parties filed competing motions for summary judgment on the issue of liability based on the proper interpretation of section 627.736(5)(b)(5), specifically, the meaning of the term "medical Consumer Price Index for Florida." On April 19, 2004, the trial court conducted a hearing on the motions for summary judgment and class certification. At the conclusion of the hearing, the trial court orally denied Atlanta Casualty's motion for summary judgment and granted Open MRI's motions for parti

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