HealthPort Technologies, LLC v. Garrison Law Firm, LLC , 2016 Ind. App. LEXIS 71 ( 2016 )

Mar 15 2016, 9:28 am
ATTORNEYS FOR APPELLANT ATTORNEYS FOR APPELLEE
Joseph G. Eaton William N. Riley
Edward M. Smid Joseph N. Williams
Barnes & Thornburg, LLP Riley Williams & Piatt, LLC
Indianapolis, Indiana Indianapolis, Indiana
IN THE
COURT OF APPEALS OF INDIANA
HealthPort Technologies, LLC, March 15, 2016
Appellant, Court of Appeals Case No.
49A02-1502-PL-99
v. Appeal from the Marion Superior
Court
Garrison Law Firm, LLC, The Honorable Timothy W.
Appellee. Oakes, Judge
Trial Court Cause No.
49D02-1408-PL-27395
Pyle, Judge.
Statement of the Case
[1] In this interlocutory appeal, Garrison Law Firm, LLC, (“Garrison”), filed a
complaint for damages against HealthPort Technologies, LLC, (“HealthPort”)
alleging that HealthPort had imposed an illegal charge on Garrison’s requests
for the medical records of potential clients. HealthPort filed a motion for
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judgment on the pleadings, which the trial court denied. On appeal, HealthPort
argues that the trial court erred in denying its motion because Garrison does not
have a private cause of action. Because INDIANA CODE § 16-39-9-4, in
conjunction with 760 Indiana Administrative Code 1-71-3, does not give rise to
a private cause of action, we reverse the trial court’s denial of HealthPort’s
motion.
[2] We reverse and remand.
Issue
Whether INDIANA CODE § 16-39-9-4, in conjunction with 760
Indiana Administrative Code 1-71-3, creates a private cause of
action.1
Facts
[3] Garrison, a personal injury law firm in Indianapolis, requested healthcare
information about six potential clients from the clients’ medical providers. The
providers outsourced the release-of-information services to HealthPort, a
company that specializes in locating and copying medical records. After it
received Garrison’s requests, HealthPort initiated its release of information
process for each request, which included: (1) logging, tracking, and verifying
the request; (2) retrieving the patient’s information, which was often stored in
1
HealthPort also argues that this statute authorized HealthPort to charge the labor fees and that because
Garrison voluntarily paid the fees, he cannot now complain about them. Because we reverse on the private
cause of action issue, we do not reach these issues.
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multiple locations and formats; (3) relating only authorized information; (4)
safeguarding sensitive information; and (5) completing and invoicing the
request. Although HealthPort did not locate information regarding any of
Garrison’s potential clients, the medical records company invoiced Garrison a
$20.00 labor fee for each client to cover the costs of the information-gathering
process. Garrison initially refused to pay the invoices but later paid them under
protest.
[4] On August 15, 2014, Garrison filed a “Class Action Complaint” wherein it
alleged that HealthPort violated INDIANA CODE § 16-39-9-4 when it charged
him a labor fee for searches where no documents were produced. (App. 4).
HealthPort filed an answer and, two weeks later, a motion for judgment on the
pleadings pursuant to Indiana Trial Rule 12(C). In December 2014, the trial
court denied HealthPort’s motion after a hearing. HealthPort appeals.
Decision
[5] HealthPort argues that the trial court erred in denying its motion for judgment
on the pleadings. A judgment on the pleadings pursuant to Indiana Trial Rule
12(C) attacks the legal sufficiency of the pleadings. Midwest Psychological Ctr.,
Inc. v. Ind. Dep’t of Admin., 959 N.E.2d 896, 902 (Ind. Ct. App. 2011), trans.
denied. When we consider a motion for judgment on the pleadings, we accept
as true the well-pleaded material facts alleged in the complaint and base our
ruling solely on the pleadings. Consolidated Ins. Co. v. Nat’l Water Servs., LLC,
994 N.E.2d 1192, 1196 (Ind. Ct. App. 2013), trans. denied. A judgment on the
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pleadings is proper only where there are no genuine issues of material fact and
the non-moving party cannot in any way succeed under the facts and
allegations therein. Midwest, 959 N.E.2d at 902. All reasonable inferences are
drawn in favor of the nonmoving party and against the movant. Id. We review
a trial court’s decision on a motion for judgment on the pleadings de novo. Id.
[6] HealthPort argues that the trial court erred in denying its motion for judgment
on the pleadings because INDIANA CODE § 16-39-9-4, in conjunction with 760
Indiana Administrative Code 1-71-3, does not create a private right of action.
Therefore, according to HealthPort, Garrison has no cause of action.
[7] INDIANA CODE § 16-39-9-4 provides in relevant part as follows:
(b) The department [of insurance] may adopt rules . . . to set the
amounts that may be charged for copying records under this
chapter. In adopting rules under this section, the department
shall consider the following factors relating to the costs of
copying medical records:
(1) The following labor costs:
(A) Verification of requests.
(B) Logging requests.
(C) Retrieval.
(D) Copying.
(E) Refiling.
(2) Software costs for logging requests.
(3) Expense costs for copying.
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(4) Capital costs for copying.
(5) Billing and bad debt expenses.
(6) Space costs.
In addition, 760 Indiana Administrative Code 1-71-3 provides in relevant part
as follows:
(a) A provider or medical records company that receives a
request for a copy of a patient’s medical records shall charge not
more than the following:
(1) One dollar ($1) per page for the first ten (10) pages.
(2) Fifty cents ($.50) per page for pages eleven (11) through
fifty (50).
(3) Twenty-five cents ($.25) per page for pages fifty-one
(51) and higher.
(b) The provider or the medical records company may collect a
labor fee not to exceed twenty ($20). If the provider or the
medical records company collects a labor fee, the provider or
medical records company may not charge for making and
providing copies of the first ten (10) pages of a medical record.
[8] When a civil cause of action is premised upon the violation of a duty imposed
by statute, the initial question to be determined by the court is whether the
statute in question confers a private right of action. Estate of Cullop v. State, 821
N.E.2d2d 403, 408 (Ind. Ct. App. 2005), reh’g denied. The determination of
whether a civil cause of action exists begins with an examination of the
legislative intent. Id. See also Adams v. Arvinmeritor, Inc., No. 49A02-1406-PL-
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465, 2015 WL 8319119, at *5 (Ind. Ct. App. Dec. 9, 2015) (stating that
“legislative intent is the fulcrum of a private right of action.”) This primarily
includes discerning whether the statute is designed to protect the general public
and whether the statutory scheme contains an enforcement mechanism or
remedies for violation of the duty. Cullop, 821 N.E.2d at 408. As a general
rule, a private party may not enforce rights under a statute designed to protect
the public in general that contains a comprehensive enforcement mechanism.
LTV Steel v. Griffin, 730 N.E.2d 1251, 1260 (Ind. 2000).
[9] Here, our review of the plain language of the statute reveals that it is designed
to protect the general public rather than a private party. Thus, we turn to the
legislative intent and determine whether the statute includes an enforcement
mechanism. In making this determination, it is important to see where the
statute at issue is located within the INDIANA CODE. See Cullop, 821 N.E.2d at
408. Here, INDIANA CODE § 16-39-9-4 is located in Title 16, “Health.” The
enforcement mechanism of this title is found at INDIANA CODE § 16-19-3-18,
which provides that the Health Department may bring an action to enforce this
title. “Such an action shall be brought in the name of the State.” INDIANA
CODE § 16-19-3-18(b) (emphasis added). This is an enforcement mechanism
that is placed in the hands of the State. See Cullop, 821 N.E.2d at 408. We
cannot glean any legislative intent to authorize a private right of action by a
personal injury attorney against a medical records company, and we are
unwilling to go beyond the intent of the legislature. See id. (explaining that this
Court was unwilling to go beyond the intent of the legislature in providing a
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private remedy for the failure of a physician to follow statutory medical staff
responsibilities). See also Lockett v. Planned Parenthood of Ind., Inc., 42 N.E.3d
119, 128 (Ind. Ct. App. 2015) (holding that because the statute was designed to
protect the public in general and contained a comprehensive enforcement
provision, the statute did not confer a private cause of action upon the Locketts
to enforce the statute’s provisions).
[10] The trial court erred in denying HealthPort’s motion for judgment on the
pleadings because INDIANA CODE § 16-39-9-4, in conjunction with 760 Indiana
Administrative Code 1-71-3, does not provide Garrison with a private cause of
action. Accordingly we remand this case to the trial court with instructions to
grant HealthPort’s motion.2
[11] Reversed and remanded.
Vaidik, C.J., and Mathias, J., concur.
2
[1] We further note that Garrison’s reliance on Galloway v. Hadley, 881 N.E.2d 667 (Ind. Ct. App.
2008) is misplaced because the facts in Galloway are distinguishable from those in this case.
First, the language of the Equal Access statute at issue in Galloway confers a private benefit
whereas the language of the health records statute in this case does not. Further, in Galloway,
the statutory language limiting the department’s authority to bail agents lessened the impact of
the enforcement authority given to the Department of Insurance. Here, however, with no
language limiting the Health Department’s authority, the enforcement mechanism is more
probative of legislative intent to give that department authority to enforce the statute.
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