Credit Bureau Enterprises, Inc. v. Pelo

608 N.W.2d 20 (2000)

Facts

Police took Pelo (D) to a Hospital because he was threatening his own life. Pursuant to emergency hospitalization procedures in Iowa code, a magistrate found probable cause that D was seriously mentally impaired and likely to injure himself. D was ordered detained in custody by the psychiatric unit for up to 48 hours. D was given a form to sign, which would have made him or his insurance liable for the bill, but he refused to sign. Then a nurse came into his room at 5 in the morning and told him that without the release form signed the hospital could not ensure the safety or return of his personal items. D signed, and the form stated that he understood he remained liable for any charges not covered by insurance. D’s wife filed an application for involuntary hospitalization and an order for immediate hospitalization was entered. At an evidentiary hearing, it was found that D suffers from bipolar disorder and that he would benefit from treatment for serious mental illness. However, it was also found that the required elements of involuntary hospitalization are lacking and that further involuntary hospitalization was not authorized. D was released after five total days in the hospital. The hospital sought D to pay the $2,775.79 bill. He refused to pay or to authorize his insurance company to pay. The bill was assigned to collections. At small claims trial, D admitted to the stay but argued that he made no agreement to pay and that he later signed the release form under duress. Judgment was entered against D based on the fact that it was a private hospital and he was not indigent. D appealed. The district court affirmed; by signing the form, D had entered into a valid, enforceable contract and that he was liable under contracts implied in law based on the court’s conclusion that D benefited from the hospitalization. This appeal was taken.