Holmes v. E. Cooper Cmty. Hosp., Inc. (Summary)

MEDICAL STAFF ATTORNEY FEES AND COSTS

Holmes v. E. Cooper Cmty. Hosp., Inc., No. 27370 (S.C. Mar. 26, 2014)

The South Carolina Supreme Court upheld a lower court’s summary judgment in favor of a defendant-hospital and against a plaintiff-physician and upheld the court’s sanctions that were imposed against the physician.

The physician, an ophthalmologist and attorney, was a member of the hospital’s consulting staff.  In 2006, the physician sought advancement from the courtesy staff to the active staff at the hospital.  The hospital’s credentialing committee found that the physician was unqualified to advance, but she was permitted to remain on the courtesy staff.  In 2008, the physician again sought advancement to the active staff, and the hospital determined that her application was incomplete, and requested that she voluntarily resign from the courtesy staff.  The physician refused to resign, and instituted a lawsuit challenging the hospital’s decision.

The lower court held that the physician’s claims arose out of the hospital’s peer review process and that courts do not have jurisdiction over the decisions of private hospitals concerning the staff category and privileges of practitioners.  Furthermore, the lower court ordered sanctions against the physician for attorneys’ fees and costs in the amount of $53,447.15 because the case law was clear that courts did not have such jurisdiction and found that the lawsuit was frivolous.  The lower court also enjoined the physician from filing any further actions against the hospital without first posting a bond.

The physician appealed the award of sanctions to the South Carolina Supreme Court.  The court found that the physician’s first lawsuit previously determined the issue on its merits and this estopped the plaintiff from making the exact same argument against the hospital in the second lawsuit.  Moreover, the court upheld the sanctions because not only was this repeated challenge frivolous, but the physician was already sanctioned as a result from bringing this type of claim against the hospital.