Stallings v. Fajardo

PRESIDING JUSTICE SULLIVAN,

specially concurring:

Anchor, which was not a party in the underlying lawsuit and did not agree to the order of distribution entered by the trial court, contends that it has standing to bring this appeal from that order because of an adjudication therein which was adverse to its legal rights and pecuniary interests.

The subscription certificate which required Anchor to pay medical benefits by reason of the injuries to the minor plaintiff here also gave it a lien for the amount of those payments against any recovery from a third party for those injuries. The order of distribution in question provided for payment to Anchor of the amount of the medical benefits it had paid up to the date of the order and it was then stated in paragraph four of the order that this payment “releases and discharges all claimed liens and subrogation rights” of Anchor against all the parties in the lawsuit. Anchor argues that its standing to appeal lies in the fact that the quoted language was an adverse adjudication which precluded its lien rights to recover for benefits it would be required to pay after the date of the order and the sole issue presented is whether the language did preclude any such rights of Anchor because standing is lacking if it did not.

In this regard it is noted that none of the appellees contend that the language is preclusive of Anchor’s future rights. In fact, all of the defendants-appellees posit that “Anchor lacks standing to appeal because the order appealed from, by its express terms, affects only the lien claimed by Anchor as of the date of distribution and does not alter or affect Anchor’s rights to future reimbursements.” Likewise, plaintiffs-appellees argue only that Anchor’s subscription certificate does not provide for future lien rights and that in any event, if such rights were provided for, they were waived by Anchor. While these arguments of plaintiffs-appellees could be raised as defenses to any action by Anchor to recover future benefits paid, they do not reach the question as to whether the distribution order precluded any right under the certificate to do so.

Thus, considering (a) that the quoted language in paragraph four of the order releases and discharges only “claimed liens” with no reference to future liens, (b) that all claimed liens of Anchor for reimbursement as of the date of the order were provided for in the order and (c) that none of the appellees contend that the quoted language in paragraph four was preclusive of any future lien rights that Anchor may have, I would find that it did not so preclude and it follows from such finding that Anchor did not have standing to appeal because there was no adjudication in the order of distribution adverse to any legal rights or pecuniary interests of it. In view thereof, I would dismiss the appeal for lack of standing.