Kelly Health Care v. The Prudential Insurance Co. of America

Supreme Court of Virginia309 S.E.2d 305 (1983)

Facts

Kelly Health Care (Kelly) (plaintiff) provided health care services to Green. The Prudential Insurance Co. of America (Prudential) (defendant) provided a health insurance policy to Green. Green signed two separate documents providing, in pertinent part, that Green understood insurance proceeds from Prudential may be paid directly to Kelly. Prudential never received one of these documents and only received the second several months after Kelly began providing services to Green. Kelly submitted Green’s health care bills to Prudential and Prudential refused to pay. Kelly brought suit against Green and Prudential. The trial court granted a default judgment against Green. Kelly pursued its suit against Prudential, arguing that the documents evidenced that Kelly was Green’s assignee. Prudential filed a motion for summary judgment. The trial court found that the documents were an authorization, rather than an assignment, and granted Prudential’s summary judgment motion. Kelley appealed.

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