The Florida Supreme Court unanimously ruled Thursday that state employees’ compensation laws do not preclude the district court’s jurisdiction over claims against a caregiver for prohibited debt collection practices.
Patty Davis was injured during his employment. She received medical care from Sheridan Radiology Services from Pinellas Inc. and Laboratory Corp. of America. Thereafter, Sheridan and Labcorp repeatedly billed Davis directly for the medical care she received.
Davis brought two separate actions against Sheridan and Labcorp under the Florida Consumer Collection Practices Act, according to Laboratory Corp. of America v. Davis and Sheridan Radiology Services of Pinellas Inc. v. DavisNo., filed in Tallahassee.
Davis claimed that her employer̵
7;s insurer, Commercial Risk Management Inc., was responsible for replacing Sheridan and Labcorp, as an injured employee who received treatment under the work compensation scheme. Ms Davis thus argued that Sheridan and Labcorp’s attempt to recover the debt from her constituted an attempt to recover an illegal debt.In response, Sheridan and Labcorp argued that the courts lacked jurisdiction over the alleged FCCPA violations. The trial courts agreed with Sheridan and Labcorp and dismissed Davis’ FCCPA claim. Davis appealed, and the Florida District Court of Appeals consolidated her case.
The 2nd DCA reversed, not finding anything in Workers’ Compensation Law excluded Ms. Davis’ FCCPA claim, but it also certified the jurisdiction issue to the Florida Supreme Court.
The Supreme Court noted that the FCCPA prohibits the recovery of a debt when the collector “knows that the debt is not legitimate”, and the law allows civil action to violate its provisions. Legislation stipulates that an injured worker is not liable for medical treatment or services provided for compensable injuries, and suppliers may not charge a fee, or attempt to charge a fee, from a worker.
WorkCompCentral is a sister magazine to Business Insurance. More stories here.
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