Lee Memorial Health System v. Progressive Select Insurance Company
The Florida Supreme Court held that the special law creating Lee Memorial Health System's hospital lien (ch. 2000-439, § 18, Laws of Fla.) is unconstitutional under article III, section 11(a)(9) because the liens are 'based on private contracts' — whether a contract is public or private turns on its subject matter, not on whether one party is a public entity. The Court also held that the Second District erred by reaching an article I, section 10 contract-impairment issue the trial court properly declined to decide because the challenger failed to serve the required Rule 1.071 notice promptly.
Key facts
- Lee Memorial Health System, a public hospital entity, created a special lien law (ch. 2000-439, § 18) that granted liens against patients' settlement proceeds from personal injury lawsuits to recover unpaid medical expenses.
- Progressive Select Insurance Company challenged the lien law as unconstitutional, arguing it violated article III, section 11(a)(9) of the Florida Constitution by creating a special law pertaining to liens based on private contracts.
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Why it matters
This decision invalidates a local hospital lien special law and supplies a controlling definition of 'private contract' under article III, section 11(a)(9) that can be used to attack other local hospital lien laws and… — full analysis with a trial
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