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Colorado Supreme Court reversed summary judgment for Denver Health on its statutory claim under CRS § 16-3-401, holding that the statute does not provide hospitals a private right of action to recover costs for detainee care. Case remanded for consideration of unjust enrichment claim.
Arvada police arrested a severely injured man and sent him to Denver Health Medical Center. Denver Health and Hospital Authority (Denver Health) sued Arvada for the cost of care, claiming that CRS § 16-3-401, which says that persons in custody "shall be . . . provided . . . medical treatment," required Arvada to pay the hospital for the detainee's care. Here, the Supreme Court clarified that (1) whether a statute provides a private right of action is a question of standing, and (2) the same test for a private right of action under Allstate Insurance Co. v. Parfrey, 830 P.2d 905 (Colo. 1992), applies for claims against both governmental and non-governmental defendants. Applying Parfrey to Denver Health's statutory claim, the Court held that CRS § 16-3-401 does not provide hospitals a private right of action to sue police departments for the cost of providing healthcare to persons in custody. Accordingly, it concluded that the trial court erred by granting summary judgment to Denver Health on the statutory claim. The Court remanded the case for consideration of Denver Health's unjust enrichment claim based on Arvada's statutory duty to provide care for persons in custody.
This summary was generated to explain the ruling in plain English and is not legal advice.
The Supreme Court accepted jurisdiction over a certified question of law from the U.S. District Court for the District of Colorado to determine whether there should be an arbitration-specific exception to Colorado's traditionally defined doctrine of equitable estoppel. The Court held that Colorado's law of equitable estoppel applies in the same manner when a dispute involves an arbitration agreement as it does in other contexts. The Court recognized that under Colorado law, equitable estoppel requires proof of four elements—one of which is detrimental reliance. Thus, a nonsignatory to an arbitration agreement can only assert equitable estoppel against a signatory in an effort to compel arbitration if the nonsignatory can demonstrate each of the elements of equitable estoppel, including detrimental reliance.
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