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KALEIDA HEALTH v. UNIVERA HEALTHCARE

Citation: Not availableDocket: CA 13-01105

Court: Appellate Division of the Supreme Court of the State of New York; February 13, 2014; New York; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case involves an appeal by Utica Mutual Insurance Company (Utica) against a judgment from the Supreme Court, Erie County, which denied Utica's motion for summary judgment to dismiss claims regarding the payment of a hospital bill. The involved parties are Kaleida Health (plaintiff) and Univera Healthcare (defendant-respondent). The primary legal issue is Utica's obligation to pay under Public Health Law § 2807-c (1)(b-2) for medical services provided to a deceased patient. Utica argued that the doctrines of collateral estoppel precluded the claims due to a prior Workers’ Compensation Board decision. However, the court found that neither the plaintiff nor Univera had participated in that administrative proceeding, negating the collateral estoppel argument. Additionally, Utica's contention that the dispute should be subject to arbitration was rejected, as arbitration was not deemed mandatory in this context. The court affirmed that the hospital admission was a continuation of care related to a work-related injury, thereby upholding Utica's financial responsibility for the bill. The judgment against Utica was upheld, confirming their obligation to remit payment for the hospital services rendered.

Legal Issues Addressed

Arbitration Agreement as a Defense

Application: The court held that an arbitration agreement did not constitute a defense in this case, emphasizing that arbitration was not mandatory.

Reasoning: Utica also contended that the dispute should be arbitrated, but the court ruled that an arbitration agreement does not serve as a defense in this case.

Collateral Estoppel and Administrative Proceedings

Application: The court ruled that collateral estoppel did not apply because neither the plaintiff nor Univera participated in the prior administrative proceeding by the Workers’ Compensation Board.

Reasoning: The court rejected this, noting that neither plaintiff nor Univera participated in the administrative proceeding and thus could not be bound by its outcome, despite receiving notice.

Continuation of Hospital Admission Related to Work Injury

Application: The court found the hospital admission was a continuation of a previous work-related admission, thereby affirming Utica's responsibility for the bill.

Reasoning: Finally, the court found that the patient's hospital admission was a continuation of a previous admission related to a work-related injury, affirming Utica's responsibility for the hospital bill.

Obligation to Pay Under Public Health Law § 2807-c (1)(b-2)

Application: The court affirmed Utica's obligation to pay the outstanding hospital bill for care provided to a deceased patient under the specified statute.

Reasoning: The court affirmed that Utica is obligated to pay an outstanding hospital bill under Public Health Law § 2807-c (1)(b-2) for care provided to a deceased patient.