Latest Case: Franks v. Sykes (Consumer Law)

About Those Protests

JOSEPH MARGULIES

Cornell law professor Joseph Margulies comments on the protests that have erupted over COVID-19 restrictions. Margulies argues that because the state cannot (or will not) live up to its end of the social contract by committing to sustain people’s livelihood for the duration of the restrictions, the protests are morally legitimate.

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Franks v. Sykes

Docket: W2018-00654-SC-R11-CV

Opinion Date: May 1, 2020

Judge: Lee

Areas of Law: Consumer Law, Health Law

The Supreme Court held that the Tennessee Consumer Protection Act of 1977, Tenn. Code Ann. 47-18-101 to -132, applies to health care providers when they are acting in their business capacities and that Plaintiffs, who were consumers of medical services, may state a claim under the Act against the hospitals for conduct arising out of the hospitals' business practices. Plaintiffs received hospital medical services for injuries received in car accidents. The hospitals did not bill Plaintiffs' health insurance companies but, rather, filed hospital liens against Plaintiffs' claims for damages arising from the accidents. The liens were for the entire amount of the hospital bills and were not reduced for Plaintiffs' health insurance benefits. Plaintiffs brought this lawsuit, alleging that the filing of the discounted hospital liens was unlawful under the Act. The trial court dismissed the case for failure to state a cause of action. The court of appeals affirmed, concluding that the underlying transaction did not fit within the Act's definition of a "consumer transaction" as defined by the Act. The Supreme Court reversed, holding that Plaintiffs stated a cause of action under the Act.