In this appeal from an order granting summary judgment in favor of Herbert J. Thomas Memorial Hospital Association (hereinafter referred to as "Thomas Hospital" or "the hospital"), a defendant in the action below, the petitioners, Jan H. Cunningham and Lynn Cunningham (hereinafter collectively referred to as "the Cunninghams"), who are the plaintiffs below, ask this Court to find that certain physicians were employees or actual agents of Thomas Hospital, and therefore, Thomas Hospital may be held vicariously liable for any negligence committed by the physicians pursuant to W. Va.Code § 55-7B-9(g) (2003) (Repl. Vol. 2008). In the alternative, the Cunninghams seek to hold Thomas Hospital vicariously liable under the theory that the various defendants to this lawsuit were engaged in a joint venture. We find no error in the circuit court's award of summary judgment. Therefore, this case is affirmed.
In April 2007, Dr. Jan Cunningham (hereinafter individually referred to as "Dr. Cunningham") was taken to the Thomas Hospital Emergency Department by his wife, Lynn Cunningham. Dr. Cunningham was suffering from a physical ailment, the details of which are not necessary to our resolution of the issues herein presented. Upon arrival at the hospital, Dr. Cunningham was evaluated by a physician in the Emergency Department and referred to Hossam Tarakji, M.D., a hospitalist
Thereafter, Dr. Cunningham filed the instant medical malpractice action against Thomas Hospital, Dr. Tarakji, Dr. Rittinger, and Dr. Fogle. Also included as defendants in this malpractice action are Hospitalist Medicine Physicians of Kanawha County, PLLC (hereinafter referred to as "Hospitalist Medicine"), and Delphi Healthcare Partners, Inc. (hereinafter referred to as "Delphi"). Doctors Tarakji and Rittinger were employed by Hospitalist Medicine and treated patients exclusively at Thomas Hospital in accordance with a contractual relationship between Thomas Hospital and Hospitalist Medicine. Delphi contracted with Thomas to provide a "surgicalist" program. The parties
Thomas Hospital initially filed a motion for summary judgment in September 2009. The circuit court denied the motion by order entered on February 1, 2010. Thereafter, on April 23, 2010, Thomas Hospital filed a second motion for summary judgment. In its motion, Thomas Hospital argued that Drs. Tarakji, Rittinger and Fogle were not employees, actual agents, or joint venturers of the hospital. Therefore, Thomas Hospital asserted that there was no viable evidence upon which to hold the hospital vicariously liable for the actions of any of the aforementioned doctors. In addition, on April 29, 2010, Thomas Hospital filed a motion asking the circuit court to reconsider its February 1, 2010, order denying Thomas Hospital's first motion for summary judgment. By order entered February 3, 2011, the circuit court granted Thomas Hospital's motion to reconsider and, in addition, granted summary judgment in favor of Thomas Hospital. In granting summary judgment, the circuit court concluded that, when viewing the evidence in the light most favorable to the Cunninghams, Drs. Tarakji, Rittinger and Fogle were not actual agents or employees of Thomas Hospital at the time of the alleged negligence, and there was no joint venture. It is from this order that the Cunninghams now appeal.
This case is before this Court for review of an order granting summary judgment to Thomas Hospital. "A circuit court's entry of summary judgment is reviewed de novo." Syl. pt. 1, Painter v. Peavy, 192 W.Va. 189, 451 S.E.2d 755 (1994). In conducting this de novo review, we recognize that,
Syl. pt. 2, Painter, 192 W.Va. 189, 451 S.E.2d 755. Moreover,
Syl. pt. 4, Painter, id. Finally, we note that "[t]he circuit court's function at the summary judgment stage is not to weigh the evidence and determine the truth of the matter, but is to determine whether there is a genuine issue for trial." Syl. pt. 3, Painter, id. With due consideration for the foregoing standards governing our review, we address the issues presented.
In this action, the Cunninghams seek to hold Thomas Hospital vicariously liable for
W. Va.Code § 55-7B-9 (2003) (Repl. Vol. 2008) (emphasis added). In accordance with the foregoing provision, which precludes an ostensible agency theory of vicarious liability,
This Court previously has explained that "one must examine the facts of a particular case to determine whether an agency relationship exists." Arnold v. United Cos. Lending Corp., 204 W.Va. 229, 239, 511 S.E.2d 854, 864 (1998). This Court further has clarified that,
Syl. pt. 2, Barkley v. State Workmen's Comp. Comm'r, 164 W.Va. 777, 266 S.E.2d 456 (1980). Moreover,
Syl. pt. 1, Sanders v. Georgia-Pacific Corp., 159 W.Va. 621, 225 S.E.2d 218 (1976). See also Syl. pt. 2, Goodwin v. Willard, 185 W.Va. 321, 406 S.E.2d 752 (1991) (per curiam) ("`When the evidence is conflicting the questions whether the relation of principal and agent existed and, if so, whether the agent acted within the scope of his authority and in behalf of his principal are questions for the jury.' Syl. pt. 2, Laslo v. Griffith, 143 W.Va. 469, 102 S.E.2d 894 (1958)."); Syl. pt. 3, Spencer v. Travelers Ins. Co., 148 W.Va. 111, 133 S.E.2d 735 (1963) ("Where the evidence involving an independent contractor or employee is conflicting, or if not conflicting, where more than one inference can be derived therefrom, the question is one of fact for jury determination, but where the facts are such that only one reasonable inference can be drawn therefrom, the question is one of law for the court to decide.").
The "seminal case establishing the test for whether an independent contractor relationship exists is Paxton v. Crabtree, 184 W.Va. 237, 400 S.E.2d 245 (1990)." Shaffer v. Acme Limestone Co., Inc., 206 W.Va. 333,
Syl. pt. 5, Paxton, 184 W.Va. 237, 400 S.E.2d 245. Thus, we consider the foregoing elements, with particular attention to the last element, power of control, to determine whether the evidence was in conflict or whether more than one inference could be drawn therefrom. In conducting this analysis, we will consider particular contractual terms that pertain to the elements of the test, while also upholding the established principle that the mere existence of a contract, or the contractual characterization of a relationship as involving an independent contractor, is insufficient to conclusively resolve the true nature of the relationship at issue:
Zirkle v. Winkler, 214 W.Va. 19, 23, 585 S.E.2d 19, 23 (2003) (per curiam).
With respect to Dr. Fogle, the contract between Delphi and Thomas Hospital expressly specified that Delphi would "solicit and recruit qualified physicians." The evidence established that Delphi pre-screened Dr. Fogle and selected him as a candidate to serve their obligation to Thomas Hospital. Dr. Fogle's deposition testimony pertaining to his hiring was as follows:
Thus, Delphi first selected Dr. Fogle and then presented him to Thomas Hospital as a candidate to serve as a surgicalist at the hospital. This process was in accordance with the contractual arrangement between Delphi and Thomas Hospital, which expressly specified that "all physicians recruited by [Delphi] must be approved and accepted by" Thomas Hospital. Accordingly, Thomas Hospital had the opportunity to evaluate Dr. Fogle to determine whether he was a good fit with the hospital. Nevertheless, the evidence before the court at the summary judgment stage clearly established that Dr. Fogle was recruited and hired by Delphi. In other words, to utilize the language of Paxton, it was Delphi, and not Thomas Hospital, who was responsible for the "[s]election and engagement" of Dr. Fogle. Syl. pt. 5, Paxton, 184 W.Va. 237, 400 S.E.2d 245.
The evidence with respect to Drs. Tarakji and Rittinger was similar. The contract between Thomas Hospital and Hospitalist Medicine expressly provided that Thomas Hospital "shall have the right to approve any [Hospitalist Medicine] Physician or Mid-Level Provider working for [Hospitalist Medicine], which approval shall not be unreasonably withheld, conditioned, or delayed." The evidence establishes that Drs. Tarakji and Rittinger were recruited by Hospitalist Medicine. In this respect, Dr. Tarakji testified by deposition that he was contacted by Hospitalist Medicine and hired by the same. He
Based upon the foregoing, the evidence regarding the first element of the Paxton test presents no factual question. Rather, the evidence demonstrates that Dr. Fogle was recruited and engaged by Delphi, and Drs. Tarakji and Rittinger were recruited and engaged by Hospitalist Medicine. Thus, factor one favors the conclusion that Drs. Fogle, Tarakji and Rittinger were not agents of Thomas Hospital.
Similarly, the contract between Hospitalist Medicine and Thomas Hospital provided that the physicians rendering services thereunder, which were Drs. Tarakji and Rittinger, were required to maintain certain fundamental qualifications, as well as other qualifications. If a physician failed to maintain the fundamental qualifications, he or she would no longer be eligible to provide services at Thomas Hospital. Under this circumstance, Hospitalist Medicine would be required to assign another physician to perform the contracted-for services. If the physician failed to maintain the other qualifications, the parties had ninety days in which to reach a mutually agreeable resolution. The failure to reach a resolution would result in the loss of the physician's eligibility to provide services at Thomas Hospital, and Hospitalist Medicine would be required to assign another physician to perform the contracted-for services. There is nothing in this agreement that granted Thomas Hospital the power to dismiss Dr. Tarakji or Dr. Rittinger. To the contrary, the contracts between Hospitalist Medicine and Drs. Tarakji and Rittinger expressly set out the conditions under which the physicians could be terminated.
Accordingly, the third element of the Paxton test creates no question of fact and favors the conclusion that Drs. Fogle, Tarakji and Rittinger were not agents of Thomas Hospital.
Syl. pt. 2, Spencer v. Travelers Ins. Co., 148 W.Va. 111, 133 S.E.2d 735 (1963). However, the entity engaging an independent contractor is not required to surrender all control in order to maintain an independent contractor relationship.
Syl. pt. 4, Shaffer v. Acme Limestone Co., Inc., 206 W.Va. 333, 524 S.E.2d 688 (1999).
The Cunninghams cite three cases which they assert represent instances where this Court has applied agency principles in the hospital/physician context and found the hospital to be liable. However, two of these cases are distinguishable from the case sub judice because each relied upon the fact that the hospital selected the physician and/or insisted that the patient be treated by a particular physician of the hospital's choice.
The third case cited by the Cunninghams is Thomas v. Raleigh General Hospital, 178 W.Va. 138, 358 S.E.2d 222 (1987). Raleigh General relied in significant part upon the fact that the hospital had selected the physician (an anesthesiologist);
178 W.Va. at 141, 358 S.E.2d at 225. The Cunninghams contend that Dr. Fogle was a director of surgery and performed administrative, i.e. management, duties on behalf of the hospital. We note, however, that Dr. Fogle's administrative duties were set out in his contract with Delphi and pertained to the surgical program that Delphi had contractually agreed to provide for Thomas Hospital. Furthermore, unlike the doctor in Raleigh General who received a stipend from the
Moreover, we have carefully and thoroughly reviewed the record in this case and find no evidence to establish a question of fact with regard to the element of control exercised by the hospital over Drs. Fogle, Tarakji and Rittinger. On the contrary, the evidence is clear that the hospital merely exercised a level of control commensurate with that approved by this Court in Shaffer v. Acme Limestone Co., Inc. To reiterate, under Shaffer, Thomas Hospital was permitted to exercise "broad general powers of supervision and control as to the results of the work so as to insure satisfactory performance of the contract[.]" Syl. pt. 4, Shaffer, 206 W.Va. 333, 524 S.E.2d 688.
Additional evidence relied upon by the Cunninghams to establish control by Thomas Hospital is simply unpersuasive. For example, the Cunninghams assert that Thomas Hospital set the schedules for the three physicians. This assertion is not a correct interpretation of the evidence. Instead, the evidence considered by the circuit court in granting summary judgment demonstrates that Delphi was contractually obligated to provide scheduling services for Dr. Fogle. Similarly, according to the contract between Hospitalist Medicine and Thomas Hospital, Dr. Tarakji, as the on-site medical director, was to "[s]chedule medical coverage by HMP [Hospitalist Medicine] Physicians in accordance with the terms of the Agreement."
The Cunninghams also rely on the fact that Thomas Hospital provided office space and secretarial support to the physicians. We find this evidence inadequate to establish a level of control that would overcome the physicians' independent-contractor status.
The Cunninghams further assert that the doctors were obligated to provide services twenty-four hours per day, seven days per week to the hospital. This was simply a term included in Thomas Hospital's contracts with Delphi and Hospitalist Medicine. Physicians providing the services for which they are contractually obligated does not establish control by the hospital over said physicians.
A final example of the evidence relied upon by the Cunninghams is their contention that Thomas Hospital's control over Dr. Fogle was evidenced by the fact that he was required to work exclusively at the hospital. Notably, however, while there is an exclusivity provision in the Delphi/Thomas Hospital agreement, Dr. Fogle's contract with Delphi contained a "Freedom to Contract" clause that stated "[i]t is agreed that Physician may engage in any other professional activities or business during the term of this Agreement so long as such activities are not inconsistent with and do not conflict with Physician's contractual obligations hereunder." Thus, this evidence does not create a question with regard to Thomas Hospital's control over Dr. Fogle.
Having carefully reviewed the evidence that was before the circuit court when it ruled on Thomas Hospital's summary judgment motion, and having considered that evidence in light of the factors set out by this court in Paxton, we agree with the circuit court's conclusion that Drs. Fogle, Tarakji and Rittinger were not agents or employees of Thomas Hospital. Therefore, we affirm the circuit court's award of summary judgment with respect to the Cunningham's vicarious liability theory.
As an alternate theory, the Cunninghams contend that Thomas Hospital was vicariously liable for the actions of the defendant physicians insofar as they were engaged in a joint venture.
Syl. pt. 5, Armor v. Lantz, 207 W.Va. 672, 535 S.E.2d 737 (2000). In addition,
Sipple v. Starr, 205 W.Va. 717, 725, 520 S.E.2d 884, 892 (1999) (finding genuine issues of material fact existed as to whether fuel distributor, convenience store, and store owner engaged in a joint venture).
The Cunninghams assert that the various contracts among Thomas Hospital, Delphi, Hospitalist Medicine and the three defendant physicians were for the sole purpose of providing medical services at Thomas Hospital for a profit. The Cunninghams also direct the Court's attention to the following:
Pages-Ramirez v. Hospital Espanol Auxillo Mutuo De Puerto Rico, Inc., 547 F.Supp.2d 141, 151 (D.Puerto Rico 2008).
Thomas Hospital responds that "`[p]ossibly the most important criterion of a joint venture is joint control and management of the property used in accomplishing its aims.' Barton v. Evanston Hosp., 159 Ill.App.3d 970, 974, 111 Ill.Dec. 819, 513 N.E.2d 65, 67 (1987) (citation omitted)." Armor v. Lantz, 207 W.Va. 672, 680, 535 S.E.2d 737, 745 (2000). Thomas Hospital argues that there was no joint venture in this instance because Thomas Hospital did not have the right to control the physicians in their provision of medical treatment, and, likewise, the physicians and corporations (Delphi and Hospitalist Medicine) did not have the right to control Thomas Hospital when it came to hospital functions or property.
The Armor v. Lantz Court went on to state:
Armor, 207 W.Va. at 680, 535 S.E.2d at 745.
The circuit court found, as a matter of law, that
We find no error in this conclusion and, therefore, affirm the circuit court's summary judgment on the issue of a joint venture.
For the reasons stated in the body of this opinion, we find the Circuit Court of Kanawha County did not err in granting summary judgment in favor of Thomas Hospital based
Affirmed.
Justice McHUGH, deeming himself disqualified, did not participate.
Judge WILKES, sitting by temporary assignment.
Stedman's Medical Dictionary for the Health Professions and Nursing 731 (6th ed. 2008). See also Dorland's Illustrated Medical Dictionary 884 (31st ed. 2007) (defining "hospitalist" as "[a] physician specializing in hospital inpatient care"); Mosby's Medical Dictionary, 902 (7th ed. 2006) (same).