Young v. Miller Truck Lines, LLC et al
Filing
36
ORDER denying 35 Joint MOTION for Reconsideration. Signed by Honorable P. K. Holmes, III on February 24, 2012. (sh)
IN THE UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF ARKANSAS
FORT SMITH DIVISION
KAYLEA YOUNG
v.
PLAINTIFF
Case No. 2:10-CV-02200
MILLER TRUCK LINES, LLC; and
JAMES C. FORE, III
DEFENDANTS
ORDER
Currently before the Court is the parties’ Joint Motion for Reconsideration (Doc. 35), in
which the Court is asked to reconsider its Order of February 17, 2012 (Doc. 34), denying the parties’
Joint Motion for Continuance (Doc. 32) and Joint Motion for Joinder of St. Francis Hospital as a
third party to this action (Doc. 33).
The Court reasoned in its February 17 Order that St. Francis Hospital (“St. Francis”) did not
yet have a valid subrogation lien against any proceeds in this case. A subrogation lien would only
be valid after Plaintiff received any settlement proceeds, or after the Court made a judicial
determination that Plaintiff had been “made whole.”1 The Court also found in its Order – and the
parties conceded in their Motion for Reconsideration – that St. Francis was not a necessary party for
1
Even though the parties appeared to agree with the Court’s reasoning on this
point, they urged in their Motion for Reconsideration that the Court consider relaxing the
standard by which liens are held to be valid, citing in support of their argument the case of Daves
v. Hartford Acc. and Indem. Co., 302 Ark. 242 (Ark. 1990). In Daves, a subrogation lien was
adjudged valid and enforceable when the insurer received notice of the existence of the claim.
However, the lien in Daves arose by operation of law, pursuant to Arkansas statute, and no such
statutory lien exists in the instant case. Rather, the lien asserted by St. Francis was filed in
Oklahoma against Defendant Miller Truck Lines for costs of medical care incurred by Plaintiff
Kaylea Young. St. Francis’ lien is accordingly not yet valid against any proceeds in the instant
dispute. Further, St. Francis has not intervened in the instant dispute nor filed its lien in any
Arkansas court.
-1-
trial of this action.
It appears, therefore, that the basis for the parties’ Motion for Reconsideration is their
assertion that St. Francis “is . . . a necessary party in order for this case to settle.” (Doc. 35, para. 5).
Compulsory joinder of a party according to Fed. R. Civ. P. 19, is not premised upon the parties’
ability or desire to settle. Though the Court does encourage settlement of lawsuits, a party that is not
necessary for trial of a dispute, does not have a valid lien against settlement proceeds, and is not
subject to service of process and personal jurisdiction in Arkansas is not a proper party to be joined
by this Court.
The Court in its Order found that joinder under Rule 19 could only take place if the party to
be joined were subject to service of process. In the parties’ Motion to Reconsider, they stated “it is
believed” that St. Francis “may very well have” certain minimum contacts with Arkansas, but
provided no facts to support their speculation. See Doc. 35, para. 4. The facts currently before the
court with regard to St. Francis are these: St. Francis is a hospital in Oklahoma; St. Francis
administered services to Plaintiff in Oklahoma; and St. Francis later filed a hospital lien in an
Oklahoma county court naming the parties to the instant action. Considering these facts, the Court
declines to follow the parties’ suggestion to join St. Francis and “wait and see” if St. Francis raises
or waives the issue of lack of personal jurisdiction after joinder. Accordingly, the Court finds that
its Order of February 27, 2012, was correct in that St. Francis is not subject to service of process in
this case and is not a necessary party to the claims asserted in this lawsuit. The parties’ Joint Motion
for Reconsideration (Doc. 35) is therefore DENIED.
A pre-trial conference for this case is set for Tuesday, March 6, 2012, with trial commencing
on March 12, 2012.
-2-
IT IS SO ORDERED this 24th day of February, 2012.
/s/P. K. Holmes, III
P.K. HOLMES, III
CHIEF U.S. DISTRICT JUDGE
-3-
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?