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Florida Supreme Court strikes down Lee Memorial Health System Lien Statute as unconstitutional under Article III section 11 (a) (9)

We are very proud of Valerie Dondero of our Miami office. On December 20, 2018 the Florida Supreme Court sided with Progressive Select Insurance Company and insurers throughout Florida in striking down Lee Memorial Health System’s Lien statute, finding the law unconstitutional under Article III, section 11 (a) (9). Lee Memorial brought suit against Progressive alleging it impaired the hospital lien when Progressive settled a third party injury claim with the patient. Progressive successfully asserted that the lien statute is a special law that created, enforced and impaired liens based on a private contract, in violation of Article III, section 11 (a) (9). Lee Memorial asserted that its status as a public hospital permitted it to solely enter into public contracts, thereby avoiding the constitutional prohibition. Neither the Second District nor Supreme Court agreed, finding that the nature of the agreement to provide medical care and treatment, rather than the status of one of the parties to the contract, determined whether the contract was private or public.

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