Credit Bureau Enterprises, Inc. v. Pelo

Credit Bureau Enterprises, Inc. v. Pelo - Contracts 10/10...

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Contracts 10/10 Restitution Credit Bureau Enterprises, Inc. v. Pelo, Supreme Court of Iowa, 2000 Facts : Russell Pelo had a fight with his wife. He left his home, went to a hotel, and bought a shotgun. He called his wife indicating that he might hurt himself. His wife apparently called the police who escorted Pelo to a hospital. A doctor at the hospital called the Hardin County Magistrate who found probable cause that Pelo was seriously mentally impaired and likely to physically injure himself. The Magistrate required that Pelo be hospitalized in the psychiatric unit for not more than 48 hours. During admission to the hospital, Pelo was given a hospital release form to sign which would’ve made either Pelo or his insurance company responsible for the hospital bill. Pelo refused to sign the form. A nurse awakened him at 5:00 A.M. and said if he didn’t sign the form, the hospital couldn’t insure the return of his personal items. Pelo then signed the form. The form said Pelo remained liable for any charges not covered by insurance. The hospital found that Pelo was bipolar. The referee also concluded that although Pelo would benefit from treatment of his disorder, the required elements for involuntary hospitalization were lacking. Pelo was released. The hospital later sought compensation from Pelo in the amount of $2,775.79. Pelo refused to pay the bill. The hospital assigned its claim to Credit Bureau Enterprises. Pelo testified that he made no agreement to pay for services because he didn’t believe he needed them. He said he later signed the release form under duress and that he did not agree to pay for medical services. Procedure : small claims court found for plaintiff. The district court affirmed, concluding that by signing the hospital form, Pelo had entered into a valid, enforceable contract to be financially responsible for the hospital bill. They rejected his argument that he signed the
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Credit Bureau Enterprises, Inc. v. Pelo - Contracts 10/10...

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