Estate of Ray v. Forgy (Summary)

APPARENT AGENCY AND CORPORATE NEGLIGENCE

Estate of Ray v. Forgy, No. COA12-1071 (N.C. Ct. App. May 7, 2013)

A widower brought suit against a hospital after a complication from surgery was misdiagnosed by a physician and eventually led to the death of his wife.  The widower argued that two issues of material fact existed with regard to apparent agency and corporate negligence that made summary judgment improper.

The Court of Appeals for North Carolina held that the widower’s belief that the physician was an employee of the hospital was unreasonable.  The court stated that both the wife and the widower signed consent forms indicating that they saw the physician as distinct from the hospital.  In addition, the couple had visited the physician’s private office on multiple occasions, where they were required to sign separate consent forms that were specific to the private medical office. There was also a paragraph on the forms signed at the hospital that stated that many of the physicians on staff were not employees but independent contractors who had been granted privileges.  The trial court did not err in granting summary judgment on the issue of apparent agency.

The appellate court held that the trial court did err in granting summary judgment on the issue of corporate negligence.  When the physician applied for reappointment, he indicated that he had a professional liability suit pending against him but did not attach any information explaining the suit.  No one at the hospital discussed the care of those patients with him.  The appellate court stated that this raised an issue of fact as to whether or not the hospital was reasonably diligent in reviewing the physician’s qualifications.  This portion of the summary judgment was reversed and remanded.