Texans for Lawsuit Reform

Through political action, legal, academic and market research, and grassroots initiatives, TLR fights for common-sense reforms that keep Texas open for business.

  • About TLR
    • Our Mission
    • Our Team
    • Timeline of Reforms
  • Videos
  • Issues
  • Resource Center
    • Special Reports
    • In the News
    • Press Releases
    • The Advocate
    • TLR Blog: For the Record
  • Get Involved
  • Contact
    • Contact Us
    • Invite a TLR Speaker
  • Donate
  • Stay Informed
In the News

Texas Supreme Ct. Approves Discovery for Documents Related to Medical Charges

Claims Journal, June 2, 2021

By Jim Sams

The Texas Supreme Court ruled that a defendant in a personal-injury suit has a right to review documents regarding medical providers’ negotiated rates and costs even though the providers were not parties to the suit.

The high court on Friday overturned a decision by Dallas County judge to quash a subpoena by K&L Auto Crushers that sought extensive information related to billing practices and rates charged by medical providers, finding the discovery request overly broad. The court said the case presented the same issues as a similar dispute that it decided three years ago, but in a different context.

“As we held in North Cypress and reaffirm today, the rates healthcare providers charge to private insurers and public payors and their costs for providing services to a patient constitute relevant facts and data,” the Supreme Court said. “The trial court could certainly limit discovery by excluding information K & L Auto could obtain elsewhere, but it could not simply deny all access to the relevant facts and information because some of it might be available elsewhere or because K & L Auto hired experts to argue the reasonableness of the rates.”

K & L’s appeal was closely watched by medical providers, the insurance industry and tort-reform advocates. The latter argue that a lack of transparency about medical providers’ charges contribute to fast-rising medical costs. Texans for Lawsuit Reform, the Texas Medical Association, the Texas Civil Justice League, the American Property Casualty Insurance Association and the US Chamber of Commerce were among the 13 organizations that submitted amicus briefs.

Kevin Walker sued K & L for injuries he allegedly suffered when a tractor trailer driven by one of its employees struck his car while the two vehicles were negotiating a right turn in side-by-side lanes. The K & L truck’s wheels caught the side of Walker’s car, tearing the sheet metal along the driver’s side.

Walker and the truck driver, Thomas Gothard Jr., both drove away from the accident after exchanging insurance information and taking photographs. But Walker sought medical treatment four days later. He underwent surgery to his cervical spine and shoulder to repair injuries he claimed he sustained in the accident.

Walker’s medical providers billed him about $1.2 million, according to the opinion. His attorney’s sent the medical providers “letters of protection” that promised they would attempt to recover payment for “reasonable and necessary medical charges’ when they settled Walker’s claims.

K&L challenged the costs as unreasonable. He filed subpoenas that “included multiple requests, some with multiple sub-requests” for a “wide array of information,” according to the opinion.

St. Camillus Medical Center, Pine Creek Medical Center, and Dr. Andrew Indresano filed a motion to quash the motion as overly broad. Judge James R. Jordan, with the 160th District Court, granted the motion without discussion.

K & L narrowed its discovery request so that it fell within the scope that was outlined in the North Cypress case and filed a motion for reconsideration, but the medical providers contended the request was still overly broad, “unduly burdensome and harassing.” Jordan denied the company’s motion. The Texas 5th Court of Appeals refused to hear the case, but the Supreme Court granted review.

The Supreme Court said it decided in North Cypress that the costs a hospital incurred to provide services has some bearing on whether its charges are reasonable. The healthcare industry has a two-tiered billing structure — with a chargemaster rate for uninsured patients and lower rates for private and public insurers. The Supreme Court said it held in the North Cypress case that chargemaster rates are “increasingly arbitrary” and “frequently uncollected.”

The court said under Texas law, there are limits to what a claimant may recover from a torfeaser for medical expenses. Firstly, the amount awarded by a court cannot exceed what was actually paid. Secondly, the amount must be reasonable.

K & L has not conceded that it is liable for Walker’s injuries, but if the lawsuit goes to trial it will need to present evidence about the extent of damages. The Supreme Court said the company’s request for documents would provide “concrete evidence” rather than “speculative evidence” based on witness testimony.

The opinion says that doesn’t mean discovery requests can have unlimited scope. The amount of information requested must be proportional to the likely benefit. The opinion notes that while the medical providers are not parties to Walker’s lawsuit, they do have an interest in the outcome because of the letters of protection that Walker’s attorneys provided them.

“We conclude that the information sought through K & L Auto’s narrowed requests is relevant and the trial court abused its discretion by completely denying discovery of that information,” the Supreme Court said.

Justices Rebeca Aizpuru, Jane Bland and Eva Guzman wrote a concurring opinion. While they agreed with the majority’s decision, Huddle said he wrote separately to emphasize that “nonparty discovery will not be appropriate in every personal-injury case.”

The Supreme Court remanded the case to the 160th District with instructions to vacate its order denying K & L’s motion for reconsideration. It said that the trial court retains discretion to issue a protective order to shield confidential information or trade secrets from public disclosure and set reasonable limits on the information requested.

Follow us on Facebook

Comments Box SVG iconsUsed for the like, share, comment, and reaction icons

Texans for Lawsuit Reform

19 hours ago

Texans for Lawsuit Reform

In case you missed it: Specialized business courts like the Delaware Court of Chancery can be an important addition to a state’s economic foundation. These courts quickly and expertly handle complex business litigation, freeing up other courts to handle other types of cases. Read and share: bit.ly/3y7zwnI ... See MoreSee Less

Link thumbnail

Making Business Our Business

bit.ly

Much has been written about Elon Musk—eccentric billionaire, CEO of some of the most innovative companies in the world and… future owner of Twitter? While the nuances of this deal are daily fodder...
View on Facebook
·Share

Share on FacebookShare on TwitterShare on Linked InShare by Email

  • Likes: 0
  • Shares: 0
  • Comments: 0

Comment on Facebook

Texans for Lawsuit Reform

2 days ago

Texans for Lawsuit Reform

The federal judge who supervises multidistrict opioid litigation had ordered a certain percentage of future opioid settlements to be set aside for plaintiffs’ lawyers who have similar cases outside the MDL, diverting more settlement money away from the victims. Read & share: bit.ly/3NqcDQP ... See MoreSee Less

Link thumbnail

Multidistrict Opioid Litigation Continues to Enrich Plantiffs' Lawyers

bit.ly

Multidistrict opioid litigation is once again being used to the advantage of plaintiffs’ lawyers. This very serious issue requires a victims-first approach, not a plaintiffs’-lawyer-payday-first a...
View on Facebook
·Share

Share on FacebookShare on TwitterShare on Linked InShare by Email

  • Likes: 1
  • Shares: 0
  • Comments: 0

Comment on Facebook

Texans for Lawsuit Reform

3 days ago

Texans for Lawsuit Reform

A month passed before Harris County courts brought in 18-year-old Corey Hodges, who violated his bond conditions 37 times. Crime Stoppers’ Andy Kahan blames the initial judge's lack of enforcement on his first bond violation back in 2015. Read and share: bit.ly/3A6vLjC ... See MoreSee Less

Link thumbnail

18-year-old charged with murder, aggravated assault violates bond conditions at least 37 times

bit.ly

HARRIS COUNTY, Texas – 18-year-old Corey Hodge could be a poster guy for Breaking Bond. “This is clearly you are breaking your bond conditions,” said Andy Kahan with Crime Stoppers. On April 17,...
View on Facebook
·Share

Share on FacebookShare on TwitterShare on Linked InShare by Email

  • Likes: 1
  • Shares: 1
  • Comments: 0

Comment on Facebook


Follow us on Twitter

lawsuitreform avatarTLR@lawsuitreform·
13h 1542991625462464513

TLR is working to make the Texas legal system fair, efficient, and accessible for all. Learn more: #tortreform #stoplawsuitabuse

About - Texans for Lawsuit Reform

TLR's objective is to restore litigation to its traditional and appropriate role in our society. A lawsuit takes a heavy emotional and financial toll ...

bit.ly

Reply on Twitter 1542991625462464513Retweet on Twitter 1542991625462464513Like on Twitter 1542991625462464513Twitter 1542991625462464513
lawsuitreform avatarTLR@lawsuitreform·
19h 1542901497490456578

#ICYMI: Certain business courts like the Delaware Court of Chancery can be an important addition to a state’s economic foundation. These courts quickly & expertly handle complex business litigation freeing up other courts to handle other cases. Read & RT:

Making Business Our Business

Much has been written about Elon Musk—eccentric billionaire, CEO of some of the most innovative companies in the world and… future owner of Twitte...

bit.ly

Reply on Twitter 1542901497490456578Retweet on Twitter 15429014974904565781Like on Twitter 1542901497490456578Twitter 1542901497490456578
lawsuitreform avatarTLR@lawsuitreform·
30 Jun 1542629262443905024

Fighting lawsuit abuse keeps our courts fair and our economy strong. Learn more →

About - Texans for Lawsuit Reform

TLR's objective is to restore litigation to its traditional and appropriate role in our society. A lawsuit takes a heavy emotional and financial toll ...

bit.ly

Reply on Twitter 1542629262443905024Retweet on Twitter 1542629262443905024Like on Twitter 1542629262443905024Twitter 1542629262443905024

Texans for Lawsuit Reform
1701 Brun Street
Houston, Texas 77019

Ph. 713-963-9363
  • About TLR
  • Our Mission
  • Our Team
  • Timeline of Reforms
  • Videos
  • Issues
  • Resource Center
  • For the Record
  • Special Reports
  • In the News
  • Press Releases
  • Invite a TLR Speaker
  • Get Involved
  • Invite a TLR Speaker
  • Donate
  • Stay Informed
  • Contact TLR

Copyright © 2022 · Texans for Lawsuit Reform. All rights reserved. | Privacy Policy

Copyright © 2022 · Texans for Lawsuit Reform.
All rights reserved.
Privacy Policy