Bolivar Leflore Med. Alliance, LLP, et al. v. Williams, et al.


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Docket Number: 2005-IA-00640-SCT

Supreme Court: Opinion Link
Opinion Date: 10-05-2006
Opinion Author: RANDOLPH, J.
Holding: REVERSED AND REMANDED

Additional Case Information: Topic: Medical malpractice - Tort Claims Act - Venue - Community hospital - Instrumentality - Section 11-46-1(g) - Section 11-46-1(I) - Section 41-13-10(c)
Judge(s) Concurring: SMITH, C.J., WALLER, P.J., EASLEY, CARLSON AND DICKINSON, JJ.
Dissenting Author : DIAZ AND GRAVES JJ.
Concur in Part, Concur in Result 1: Cobb, P.J.
Concurs in Result Only: COBB, P.J.
Procedural History: Bench Trial
Nature of the Case: CIVIL - MEDICAL MALPRACTICE

Trial Court: Date of Trial Judgment: 03-08-2005
Appealed from: LEFLORE COUNTY CIRCUIT COURT
Judge: Richard Smith
Disposition: Court determined that Appellant was not within the definition of a "community hospital" & thus was not entitled to the protection of the Mississippi Tort Claims Act
Case Number: 2004-0064

  Party Name: Attorney Name:  
Appellant: BOLIVAR LEFLORE MEDICAL ALLIANCE, LLP AND PAUL E. WARRINGTON, M.D.




JASON EDWARD DARE, L. CARL HAGWOOD



 

Appellee: QUINTON WILLIAMS AND TINA MARIA RAMIZ, HEIRS-AT-LAW AND WRONGFUL DEATH BENEFICIARIES OF CANDIS KENYATTA RAMIZ, DECEASED ELLIS TURNAGE  

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Topic: Medical malpractice - Tort Claims Act - Venue - Community hospital - Instrumentality - Section 11-46-1(g) - Section 11-46-1(I) - Section 41-13-10(c)

Summary of the Facts: Quinton Williams and Tina Maria Ramiz filed a complaint in the Bolivar County Circuit Court alleging that the wrongful death of their child, Candis Ramiz, was caused by the medical negligence of defendant Dr. Paul Warrington and that his employer, defendant Bolivar Leflore Medical Alliance, LLP, was vicariously liable. The Bolivar circuit granted defendants’ motion to transfer venue to the Leflore County Circuit Court, finding that the Medical Alliance was a “community hospital” entitled to the protections of the Tort Claims Act. However, the Leflore circuit, on a motion for reconsideration, determined that the Medical Alliance was not within the statutory definition of a “community hospital” and, as such, the Tort Claims Act was inapplicable and venue was improper in Leflore County. The Supreme Court granted an interlocutory appeal.

Summary of Opinion Analysis: Section 11-46-1(g) defines a governmental entity as “the state and political subdivisions as herein defined.” A “political subdivision” is defined in section 11-46-1(I) as “any body politic or body corporate other than the state responsible for governmental activities only in geographic areas smaller than that of the state, including, but not limited to, any ... community hospital as defined in Section 41-13-10, Mississippi Code of 1972 ... or other instrumentality thereof, whether or not such body or instrumentality thereof has the authority to levy taxes or to sue or be sued in its own name.” Section 41-13-10(c) defines a community hospital as “any hospital, nursing home and/or related health facilities or programs ... established and acquired by boards of trustees or by one or more owners which is governed, operated and maintained by a board of trustees.” An instrumentality is “something that serves as an intermediary or agent through which one or more functions of a controlling force are carried out: a part, organ, or subsidiary branch esp. of a governing body.” The Bolivar Leflore Medical Alliance was created as a family medical clinic by an agreement between Greenwood Leflore Hospital, Dr. Don Blackwood, and Dr. Paul Warrington. The percentage interest of each was as follows: GLH - 98%; Dr. Blackwood - 1%; Dr. Warrington - 1%. The agreement provided that the distribution of all net income and losses among the individual partners was to proportionately mirror the percentage interest of each. The business affairs of the Alliance were to be conducted under the authority and control of an Executive Committee created by the partners. The Hospital appoints two-thirds of the Executive Committee which oversees and controls the business affairs of the Alliance and maintains a 98% interest in the income and losses of the Alliance. Dr. Warrington was contractually required to provide services exclusively for the Hospital or the partnership and, should he leave the partnership, was excluded from providing medical services in the area by a covenant not to compete contained within his employment agreement. The Medical Alliance fails to meet the statutory definition of a “community hospital.” While the Hospital, as a “community hospital” itself, is “governed, operated and maintained by a board of trustees,” that is not the case with the “Physicians Partners.” Since those “Physician Partners” have one-third appointment power with respect to the Executive Committee controlling the Alliance, it cannot be said it is “governed, operated and maintained by a board of trustees” as required by section 41-13-10(c) for a “community hospital.” However, the Alliance is an “instrumentality” of the Hospital. The Hospital has nearly total interest in the income and losses of the Alliance (i.e. 98%) and majority control over the Alliance’s Executive Committee membership (i.e. two-thirds; 2/3). Such control clearly qualifies the Alliance as an intermediary or agent through which certain functions of the Hospital are accomplished. As an “instrumentality,” the Alliance is entitled to the protections, limitations and immunities of the Tort Claims Act, and venue is proper in Leflore County.


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