DocketNumber: 16AP-511
Judges: Luper Schuster
Filed Date: 6/27/2017
Status: Precedential
Modified Date: 10/19/2024
{¶ 1} Plaintiff-appellant, Joseph Long, M.D., appeals from a judgment of the Franklin County Court of Common Pleas granting summary judgment in favor of defendant-appellee, Mount Carmel Health System ("Mount Carmel"). For the following reasons, we affirm.
I. Factual and Procedural History
{¶ 2} Mount Carmel owns and operates multiple hospitals in the Columbus area, including Mount Carmel West. On February 1, 2012, Mount Carmel contracted with Consultant Anesthesiologists, Inc. ("CAI"), a medical practice group, to provide professional anesthesiology services at Mount Carmel West (hereinafter the "Services Agreement"). The Services Agreement stated that all the anesthesiologists CAI selected to practice at Mount Carmel West would be subject to Mount Carmel's approval, and that Mount Carmel approved all of the CAI anesthesiologists currently practicing at Mount Carmel West. Among those approved physicians was Long, an anesthesiologist who CAI employed under a contract. Long was a member of the Mount Carmel West medical staff and had privileges at Mount Carmel West. After Mount Carmel and CAI executed the Services Agreement, Long practiced anesthesiology at Mount Carmel West pursuant to that contract.
{¶ 3} In early April 2012, Mount Carmel removed Long from the Mount Carmel West campus. Melissa W. Fleming, assistant general counsel at Mount Carmel, explained Mount Carmel's reasons for removing Long in an April 5, 2012 letter to Brandi Kondracke, CAI's chief executive officer. Fleming stated:
Sometime during the month of March 2012, Dr. Long took photographs on his cell phone of a Mount Carmel nursing employee, [A.M.],1 in the OR while [A.M.] was bending over a patient on the OR table. Dr. Long then proceeded to send the photographs via text messaging to other members of your practice as well as show other Mount Carmel staff the photographs on his phone.
In mid-March, * * * [another CAI anesthesiologist] showed [A.M. and another nurse] another picture of [A.M.] that had been texted to him by Dr. Long and this photograph showed [A.M.'s] side exposed as she reached over a patient.
Both physicians were instructed by the Chairman of the Anesthesia Department as well as the Anesthesia Medical Director earlier this week to cease the behavior and have no further communications with [A.M.].
* * *
In addition, Dr. Long has been reported to have walked into an OR on April 3rd, and in front of everyone in the room, stated that he would have had a bad day if he had been assigned in the next OR because, "that bitch" (referring to [A.M.] ) is in the other room. * * * [T]his retaliation creates an uncomfortable work environment for all of the staff in the OR which leads to potential compromise in patient safety; therefore, Mount Carmel is removing Dr. Long effective immediately pending further investigation.
(Apr. 5, 2012 letter from Fleming to Kondracke, attached to Compl.)
{¶ 4} Fleming also informed Kondracke that Mount Carmel had not yet completed its investigation into Long's actions. Fleming requested a meeting with Kondracke to discuss the situation, and she promised to provide Kondracke with the results of Mount Carmel's investigation prior to the meeting.
{¶ 5} Melissa Stacy-Cull, the director of surgical services at Mount Carmel West, investigated Long's conduct. Stacy-Cull interviewed A.M., as well as other members of the nursing staff. Stacy-Cull neither viewed the photographs at issue nor spoke with Long or the physician who received the photographs from Long. At the conclusion of her investigation, Stacy-Cull drafted a report, dated April 11, 2012, that generally confirmed the conduct described in the April 5, 2012 letter. Mount Carmel sent a copy of the report to Kondracke.
{¶ 6} Mount Carmel representatives met with CAI representatives on April 13, 2012 to discuss Long. Prior to the meeting, Sean McKibben, president and chief operating officer of Mount Carmel West, and Larry Swanner, vice president of medical affairs at Mount Carmel West, had decided to permanently bar Long from practicing at Mount Carmel West. McKibben announced Mount Carmel's decision at the meeting. Thomas Englehart, CAI's then president, asked the Mount Carmel representatives to consider giving Long a second chance given the long length and high quality of Long's service at Mount Carmel West. Mount Carmel declined.
{¶ 7} Pursuant to Long's employment contract with CAI, Long was required to "devote his * * * full time and attention to the performance of professional services for" CAI and "be responsible for providing on call coverage." (July 21, 2009 Employment Agreement at Section 3, attached to the Compl.) Once Mount Carmel removed Long from Mount Carmel West, he could no longer perform those contractual duties. Consequently, CAI terminated Long's employment agreement.
{¶ 8} On October 24, 2013, Long filed suit against Mount Carmel, alleging claims for breach of contract and tortious interference with contract, and seeking a declaratory judgment. In his complaint and amended complaint, Long asserted that Mount Carmel failed to follow the process set forth in the Services Agreement regarding CAI physicians with alleged performance or behavior issues. Section 4.2 of the Services Contract provided:
(i) Should issues of performance or behavior with any of the Providers arise which, at the reasonable discretion of [Mount Carmel], affects the immediate safety of patients, staff or members of the Hospital's Medical Staff, or otherwise gives rise to a summary suspension action under the Medical Staff Bylaws, [Mount Carmel] shall immediately remove Provider from Hospital and provide written notice of such issues to Contractor and the affected Provider as set forth below in (iii) within twenty-four (24) hours of the removal (a "Provider Adverse Act").
* * *
(iii) If [Mount Carmel] believes a Provider Adverse Act has occurred, [Mount Carmel] shall provide Contractor and Provider with a written notice describing Hospitals' concerns in sufficient enough detail to enable Contractor and Provider to assess the gravity of the situation (the "Notice"). Such Notice shall be given within two (2) business days (within 24 hours if the Adverse Act arises under subsection (i)) of the day when the Hospital learns of the Provider Adverse Act. Within two (2) business days of the Notice [Mount Carmel], Contractor and Provider (should Provider desire to do so) shall meet to review the pertinent information and discuss a resolution of [Mount Carmel]' s concerns (the "Meeting"). Prior to such Meeting, [Mount Carmel] shall provide Contractor and Provider with all reasonable information requested by such parties related to the alleged Provider Adverse Act. Within 3 business days from the Meeting, Contractor's President, or his/her designee, a senior executive of [Mount Carmel] designated by [Mount Carmel] and Provider shall work to mutually resolve the issues caused by the Provider Adverse Act. In the event the parties are unable to resolve the issues to the satisfaction of [Mount Carmel] within this time period, Contractor shall remove such Provider from providing the Services during further investigation which in all events shall be concluded within 30 days of the Meeting. If at the end of the 30 days from the Meeting the issue is not resolved by mutual agreement, [Mount Carmel] will issue to Contractor a decision on whether or not the Provider may return to Hospital(s) to provide Services.
(Feb. 1, 2012 Agreement for Anesthesia Services, attached to Mount Carmel's Mot. for Summ. Jgmt.) Long alleged that Mount Carmel breached Section 4.2 when it failed to: (1) provide him with any notice, (2) include him in the April 13 meeting, and (3) work with him to mutually resolve the issues caused by his alleged misconduct.
{¶ 9} Long also asserted in his complaint that Mount Carmel's actions breached the Medical Staff Bylaws, which are the rules, policies, and procedures governing the medical staff of Mount Carmel West. Long alleged that the Medical Staff Bylaws entitled him to certain protections, including notice and a hearing, which Mount Carmel denied him. Finally, with regard to his claim for tortious interference with contract, Long claimed that Mount Carmel's refusal to allow him to practice at Mount Carmel West improperly interfered with his employment contract with CAI. Long contended that, due to Mount Carmel's decision to bar him from Mount Carmel West, he could not perform his duties under the employment contract and CAI terminated the contract.
{¶ 10} After conducting discovery, both parties moved for summary judgment. In a judgment dated June 17, 2016, the trial court granted Mount Carmel's motion and denied Long's motion. Long timely appeals.
II. Assignments of Error
{¶ 11} Long assigns the following errors for our review:
[1.] The trial court erred in finding Dr. Long was not an intended third-party beneficiary of the Agreement for Anesthesia Services between CAI and [Mount Carmel].
[2.] The trial court erred in finding [Mount Carmel] did not breach the services agreement between CAI and [Mount Carmel].
[3.] The trial court erred in finding [Mount Carmel] did not violate Dr. Long's rights under the Bylaws (Ex[.] 9) by violating his rights under Ex[.] 2 (contract) and Ex[.] 10-5, HR procedures.
[4.] The trial court erred in finding [Mount Carmel] is entitled to Summary Judgment on Plaintiff's tortious interference with contract claim and in denying Plaintiff's Motion for Summary Judgment.
[5.] The trial court erred in finding [Mount Carmel] is entitled to Summary Judgment on Dr. Long's due process and equal protection claims.
[6.] The trial court erred in finding Dr. Long is not entitled to Declaratory Judgment.
[7.] The trial court erred in finding [Mount Carmel] is entitled to Summary Judgment on Plaintiff's malice and punitive damages claims.
III. Discussion
{¶ 12} Each of Long's assignments of error challenge the trial court's ruling on the parties' motions for summary judgment. A trial court must grant summary judgment under Civ.R. 56 when the moving party demonstrates that (1) there is no genuine issue of material fact; (2) the moving party is entitled to judgment as a matter of law; and (3) reasonable minds can come to but one conclusion when viewing the evidence most strongly in favor of the nonmoving party, and that conclusion is adverse to the nonmoving party.
Hudson v. Petrosurance, Inc.
,
{¶ 13} The party moving for summary judgment bears the initial burden of informing the trial court of the basis for the
motion and identifying those portions of the record that demonstrate the absence of a genuine issue of material fact.
Dresher v. Burt
,
A. First Assignment of Error-Third-Party Beneficiary
{¶ 14} By his first assignment of error, Long argues that the trial court erred in finding that he was not an intended third-party beneficiary to the Services Agreement between CAI and Mount Carmel. We disagree.
{¶ 15} Generally, "only an intended beneficiary may exert rights to a contract of which he is not party."
TRINOVA Corp. v. Pilkington Bros., P.L.C.
,
{¶ 16} To determine whether a party is an intended third-party beneficiary, Ohio courts apply Section 302 of the Restatement (Second) of Contracts, which reads:
(1) Unless otherwise agreed between promisor and promisee, a beneficiary of a promise is an intended beneficiary if recognition of a right to performance in the beneficiary is appropriate to effectuate the intention of the parties and either
(a) the performance of the promise will satisfy an obligation of the promisee to pay money to the beneficiary; or
(b) the circumstances indicate that the promisee intends to give the beneficiary the benefit of the promised performance.
(2) An incidental beneficiary is a beneficiary who is not an intended beneficiary.
Restatement of the Law 2d, Contracts, Section 302 (1981).
See
Hill v. Sonitrol of Southwestern Ohio, Inc.
,
{¶ 17} By beginning with the clause "unless otherwise agreed between promisor and promisee," Section 302 recognizes the contracting parties' right to come to a different agreement regarding who qualifies as an intended third-party
beneficiary. Contracting parties may further limit who may sue under their contract by expressly "otherwise agree[ing]" to exclude all third parties from acquiring or invoking any rights under a contract.
Pennsylvania State Emps. Credit Union v. Fifth Third Bank
,
{¶ 18} In the case at bar, Section 9.13 of the Services Contract states:
No Third Party Beneficiaries. Nothing herein expressed or implied is intended or shall be construed to confer upon or give any person other than the parties hereto, and their permitted successors and assigns, any rights or remedies under or by reason of this Agreement.
(Feb. 1, 2012 Agreement for Anesthesia Services, attached to Mount Carmel's Mot. for Summ. Jgmt.) Given the plainly expressed intent of this section, we conclude that the Services Agreement did not create any intended third-party beneficiaries. Long, therefore, has no right to sue under the Services Agreement.
B. Second Assignment of Error-Services Agreement
{¶ 19} In his second assignment of error Long argues that the trial court erred in finding that Mount Carmel did not breach the Services Agreement. Our conclusion that Long cannot sue for breach of the Services Agreement renders moot the question of whether Mount Carmel committed a breach of that contract. Consequently, we find Long's second assignment of error moot.
C. Third Assignment of Error-Bylaws
{¶ 20} In his third assignment of error, Long argues that the trial court erred in finding that Mount Carmel did not violate Long's rights under the Medical Staff Bylaws. We disagree.
{¶ 21} As we stated above, the Bylaws are the rules, policies, and procedures governing the medical staff of Mount Carmel West. The Bylaws specify the process for taking corrective action against, suspending, or terminating a medical staff member's appointment and/or privileges. Additionally, pursuant to the Bylaws, the medical executive committee may adopt, with the approval of Mount Carmel's board, policies to implement the general principals set forth in the Bylaws and for proper conduct of the medical staff. Long argues that Mount Carmel violated his rights under the Bylaws when it did not follow one such policy, entitled "Disruptive Behavior," when responding to his alleged misconduct. Long also argues that Mount Carmel violated his rights under the Bylaws when it failed to comply with the process set forth in Section 4.2 of the Services Agreement.
{¶ 22} On appeal, Long focuses on establishing that the alleged Bylaws violations actually occurred. Long, however, fails to point to any law that transforms the provisions of the Bylaws into legally protectable rights. If Mount Carmel owes Long no legal obligation to comply with the Bylaws, then Long cannot recover in a court of law for their violation.
See
Alley v. Wendy's Internatl., Inc.
,
{¶ 23} Arguably, the Bylaws could form a contract between Mount Carmel and the medical staff, thus giving Long contractual rights and the ability to recover for violation of those rights via a claim for breach of contract. The Bylaws, however, provide:
Not a Contract : These Bylaws are not intended to and shall not create any contractual rights between the Hospital and any Practitioner. Any and all contracts of association or employment shall control contractual and financial relationships between the Hospital and such Practitioners.
(Mount Carmel East/West Medical Staff Bylaws, attached to the Compl.) Consequently, the Bylaws expressly preclude Long from acquiring or asserting any contractual rights by virtue of its provisions.
See
Moore v. Rubin
, 11th Dist. No. 2001-T-0150,
{¶ 24} Consequently, we conclude that the trial court did not err in finding that Mount Carmel did not violate Long's rights under the Bylaws, and we overrule Long's third assignment of error.
D. Fourth Assignment of Error-Tortious Interference with Contract
{¶ 25} By his fourth assignment of error, Long argues that the trial court erred in: (1) granting Mount Carmel summary judgment on his claim for tortious interference with contract, and (2) denying him summary judgment on that claim. This assignment of error lacks merit.
{¶ 26} The tort of intentional interference with contract occurs "when a person, without a privilege to do so, induces or otherwise purposely causes a third person * * * not to perform a contract with another."
A & B-Abell Elevator Co. v. Columbus/Cent. Ohio Bldg. & Constr. Trades Council
,
{¶ 27} Under this framework, Ohio law places the burden on the plaintiff to demonstrate improper conduct in order to prevail on a claim of tortious interference with a contract instead of requiring a defendant to assert and prove privilege in defense of such a claim.
Columbia Dev. Corp. v. Krohn
, 1st Dist. No. C1300842,
{¶ 28} Here, the trial court, citing
Walter v. ADT Sec. Sys.
,
Inc.,
10th Dist. No. 06AP-115,
{¶ 29} Long presents no argument directly challenging the trial court's determination that Mount Carmel cannot be liable for the interference in the absence of evidence that Mount Carmel acted with actual malice in interfering with Long's contract with CAI. In tortious interference cases involving qualified privilege, "actual malice" has been defined as acting with knowledge that the statements are false or acting with reckless disregard as to their truth or falsity.
Miller v. J.B. Hunt Transp., Inc.
, 10th Dist. No. 13AP-162,
{¶ 30} Accordingly, we overrule Long's fourth assignment of error.
E. Sixth Assignment of Error-Declaratory Judgment
{¶ 31} We next turn to Long's sixth assignment of error, by which he argues that the trial court erred in denying him a declaratory judgment that Mount Carmel violated his contractual rights under the Services Agreement and the Medical Staff Bylaws. As we have explained above, Long has no contractual rights under the Services Agreement or the Bylaws. Accordingly, we conclude that the trial court did not err in denying him a declaratory judgment stating the opposite, and thus, we overrule Long's sixth assignment of error.
F. Fifth and Seventh Assignments of Error
{¶ 32} As a final matter, we must address Long's fifth and seventh assignments of error, which he did not argue separately in his brief. On appeal, the party asserting error bears the burden of affirmatively demonstrating that such error exists.
Deutsche Bank Natl. Trust Co. v. Sopp
,
IV. Disposition
{¶ 33} For the foregoing reasons, we overrule Long's first, third, fourth, fifth, sixth, and seventh assignments of error. Our decision to overrule Long's first assignment of error renders moot Long's second assignment of error. Accordingly, we affirm the judgment of the Franklin County Court of Common Pleas.
Judgment affirmed.
HORTON, J., concurs.
KLATT, J., concurs in part and dissents in part.
To protect the privacy of the nurse involved, we will refer to her by her initials rather than her name.
We do not find persuasive Long's argument that he may sue under the Services Agreement because he is CAI's assignee. Long points to no evidence supporting his alleged assignee status.
Those factors are: "(a) the nature of the actor's conduct, (b) the actor's motive, (c) the interests of the other with which the actor's conduct interferes, (d) the interests sought to be advanced by the actor, (e) the social interests in protecting the freedom of action of the actor and the contractual interests of the other, (f) the proximity or remoteness of the actor's conduct to the interference and (g) the relations between the parties."