Lowrey v. Fairfield Med. Ctr. (Full Text)
[Cite as Lowrey v. Fairfield Med. Ctr., 2009-Ohio-4470.]
COURT OF APPEALS
FAIRFIELD COUNTY, OHIO
FIFTH APPELLATE DISTRICT
Plaintiff-Appellant
CHARLES LOWREY, M.D.
-vs-
FAIRFIELD MEDICAL CENTER, et al.
Defendants-Appellees
JUDGES:
Hon. W illiam B. Hoffman, P. J.
Hon. John W . W ise, J.
Hon. Julie A. Edwards, J.
Case No. 08 CA 85
O P I N I O N
Civil Appeal from the Court of Common
Pleas, Case No. 04 CV 1196
Affirmed
August 28, 2009
For Defendant-Appellee Fairfield
RICHARD S. LOVERING
ERIC S. BRAVO
BRICKER & ECKLER
100 South Third Street
Columbus, Ohio 43215
CHARACTER OF PROCEEDING:
JUDGMENT:
DATE OF JUDGMENT ENTRY:
APPEARANCES:
For Plaintiff-Appellant
D. JOSEPH GRIFFITH
NICHOLAS R. GRILLI
DAGGER, JOHNSTON, MILLER
OGILVIE & HAMPSON
144 East Main Street, P. O. Box 667
Lancaster, Ohio 43130-0667
Fairfield County, Case No. 08 CA 85
2
Wise, J.
{¶1} Appellant Charles Lowrey, M.D. appeals the decision of the Fairfield
County Court of Common Pleas granting summary judgment in favor of Fairfield
Medical Center.
STATEMENT OF THE FACTS AND CASE
{¶2} After a series of incidents involving Dr. Lowrey’s conduct at Fairfield
Medical Center (“the Hospital”), the Hospital Board of Directors recommended that Dr.
Lowrey’s medical staff privileges be suspended. The parties subsequently entered into a
January 8, 2003, Settlement Agreement which provided, inter alia, that Dr. Lowrey
could reapply for staff privileges and that his application “will be evaluated on the same
basis as any other physician applying for Medical Staff Appointment and Clinical
Privileges.”
{¶3} On December 17, 2004, Dr. Lowrey filed the initial Complaint in this case
alleging, among other cla ims, various breaches of the Sett lement Agreement by the
Hosp ita l. Through amend ing h is Comp la int, Dr. Lowrey eventually a lleged e leven
counts aga inst the Hosp ital and former defendants. A ll but two of these Counts were
e lim inated via vo luntary d ism issa l, summary judgment, or both. Th is left on ly Counts
One and S ix. In Count One, Dr. Lowrey a lleged that the Hosp ita l breached
Paragraphs 4(a) and 4(b)(1)(2) of the Settlement Agreement by “fa iling to supp ly
[h is] patients with appropriate contact information and by fa iling to inform [h im] of
pat ient requests.” In Count S ix, he a lleged that the Hosp ita l breached Paragraph
Two of the Settlement Agreement by fa iling to cons ider h is applicat ion for med ical
Fairfield County, Case No. 08 CA 85
3
staff appo intment and clin ica l privileges at the Hosp ita l “on the same basis as any
other physician app lying for med ical staff appointment and clin ical privileges.”
{¶4} On September 26, 2003, Dr. Lowrey signed a Consent and Re lease of
App licant and reapp lied for Med ical Staff privileges on October 2, 2003.
{¶5} On March 3, 2004, Dr. Dominquez advised Dr. Lowrey that “the
Credentia ls Comm ittee has comp leted its review for appo intment and privileges and
has
forwarded a
recommendation
to
the Medical Executive Committee not
recommend ing emp loyment and privileges.”
{¶6} On March 18, 2004, Dr. Lowrey was sent a Not ice of Adverse
Recommendation.
{¶7} On March 23, 2004, Dr. Lowrey’s counsel questioned the basis of the
Credentials Committee’s recommendation to not grant privileges to Dr. Lowrey and on
April 12, 2004, Dr. Lowrey requested a hearing to take place after June 12, 2004,
relating to the Credential Committee’s recommendation to not grant medical staff
privileges.
{¶8} On April 21, 2004, Mina Ubbing, President and CEO of the Hospital,
advised Dr. Lowrey by certified mail that the requested hearing was scheduled to take
place June 15 – 18, 2004. Dr. Lowrey’s counsel requested a continuance of the hearing,
which was rescheduled to August 23 – 27, 2004.
{¶9} On August 18, 2004, Dr. Lowrey submitted written notice withdrawing his
application and cancelling the August 23 – 27, 2004 hearing.
Fairfield County, Case No. 08 CA 85
4
{¶10} In the nine months following the time Dr. Lowrey withdrew his staff
privileges application and cancelled the August 23 – 27, 2004 hearing, he filed four
separate lawsuits against Fairfield Medical Center.
{¶11} The case at issue before this Court is the third and only remaining of these
four lawsuits.
{¶12} In the litigation below, Dr. Lowrey sought discovery of certain peer review
materials, to which the Hospital asserted the peer review privilege and filed a Motion for
Protective Order based on R.C. §2305.252.
{¶13} On May 30, 2006, the trial court issued a Protective Order, which
remained in place throughout the litigation.
{¶14} Prior to trial, on August 29, 2008, the Hospital filed a Motion in Limine
based on the peer review privilege.
{¶15} On September 23, 2008, the date of the scheduled jury trial, the parties
submitted an Agreed Entry Continuing Trial, signed by the trial court and journalized on
September 26, 2008, wherein the parties agreed as follows:
{¶16} “The Court should reconsider Defendant’s prior Motion for Summary
Judgment if the Court determines that there has not been a waiver of the peer review
privilege of R.C. §2305.252. The Court hereby continues the trial of this matter until a
decision is reached on the admissibility of said peer review documents.”
{¶17} On October 28, 2008, the Court sustained the Hospital’s Motion in Limine
based on R.C. §2305.252, and on October 29, 2008 issued the following Entry:
{¶18} “Upon consideration of this Court’s ruling in its Entry filed on October 28,
2008 and pursuant to this Court’s Entry of September 26, 2008, the parties are hereby
Fairfield County, Case No. 08 CA 85
5
ordered to submit Memorandum fully briefing the issue(s) to be considered by this Court
[i.e., whether summary judgment should be granted on the two remaining counts] on or
before November 17, 2008.”
{¶19} In Plaintiff’s Memoranda Contra
to
the Hospital’s Motion
for
Reconsideration submitted pursuant to the Court’s October 29, 2008 Entry, Dr. Lowrey
did not contest the Hospital’s Motion for Reconsideration of the ruling on Count One,
only contesting the Entry as to Count Six.
{¶20} On December 3, 2008, after consideration of the Hospital’s Motion for
Reconsideration and Plaintiff’s Memorandum Contra, the trial court sustained the
Hospital’s Motion for Summary Judgment and dismissed remaining Counts One and
Six.
{¶21} Appellant now appeals, assigning the following errors for review:
ASSIGNMENTS OF ERROR
{¶22} “I. THE TRIAL COURT ERRED IN RECONSIDERING AND GRANTING
SUMMARY JUDGMENT AS TO COUNT SIX OF DR. LOWREY’S COMPLAINT.
{¶23} “II. THE TRIAL COURT ERRED IN RECONSIDERING AND GRANTING
DEFENDANT’S MOTION FOR SUMMARY JUDGMENT AS TO COUNT ONE OF
APPELLANT’S COMPLAINT.
{¶24} “III. THE TRIAL COURT ERRED IN GRANTING DEFENDANT’S MOTION
IN LIMINE AS TO CERTAIN PEER REVIEW MATERIALS DUE TO THE FACT THAT
PRIVILEGE WAS WAIVED IN THE INSTANT CASE.”
{¶25} Appellant has failed to comply with Local App.R. 4(A) which requires
appellant to attach to his brief a copy of the judgment entry appealed from. Although
Fairfield County, Case No. 08 CA 85
6
failure to comply with these rules is failure to prosecute for which dismissal may be
entered sua sponte, we decline to dismiss on procedural grounds and proceed to
address the merits of this appeal.
{¶26} For clarity and ease of analysis, we shall address Appellant’s assignments
of error out order.
III.
{¶27} In his third assignment of error, Appellant argues that the trial court erred
in granting defendant’s motion in limine as to certain peer review materials. We
disagree.
{¶28} Revised Code §2305.252 and §2305.253 set forth the confidentiality of
records and proceedings in the peer review process. R.C. §2305.252 provides an
umbrella of protection to information which is collected and maintained by a peer review
committee during a peer review process. R.C. §2305.252 addresses the confidentiality
of peer review committee proceedings and provides in pertinent part as follows:
{¶29} “Proceedings and records within the scope of a peer review committee of
a health care entity shall be held in confidence and shall not be subject to discovery or
introduction in evidence in any civil action against a health care entity or health care
provider, including both individuals who provide health care and entities that provide
health care, arising out of matters that are the subject of evaluation and review by the
peer review committee. No individual who attends a meeting of a peer review
committee, serves as a member of a peer review committee, works for or on behalf of a
peer review committee, or provides information to a peer review committee shall be
permitted or required to testify in any civil action as to any evidence or other matters
Fairfield County, Case No. 08 CA 85
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produced or presented during the proceedings of the peer review committee or as to
any finding, recommendation, evaluation, opinion, or other action of the committee or a
member thereof. Information, documents, or records otherwise available from original
sources are not to be construed as being unavailable for discovery or for use in any civil
action merely because they were produced or presented during proceedings of a peer
review committee, but the information, documents, or records are available only from
the original sources and cannot be obtained from the peer review committee’s
proceedings or records. An individual who testifies before a peer review committee,
serves as a representative of a peer review committee, serves as a member of a peer
review committee, works for or on behalf of a peer review committee, or provides
information to a peer review committee shall not be prevented from testifying as to
matters within the individual’s knowledge, but the individual cannot be asked about the
individual’s testimony before the peer review committee, information the individual
provided to the peer review committee, or any opinion the individual formed as a result
of the peer review committee’s activities. An order by a court to produce for discovery or
for use at trial the proceedings or records described in this section is a final order.”
{¶30} R.C. §2305.25(E)(1) defines “peer review committee” in part as follows:
{¶31} “ ‘Peer review committee’ means a utilization review committee, quality
assessment committee, performance improvement committee, tissue committee,
credentialing committee, or other committee that does either of the following:
{¶32} “(a) Conducts professional credentialing or quality review activities
involving the competence of, professional conduct of, or quality of care provided by
Fairfield County, Case No. 08 CA 85
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health care providers, including both individuals who provide health care and entities
that provide health care;
{¶33} “(b) Conducts any other attendant hearing process initiated as a result of a
peer review committee’s recommendations or actions….”
{¶34} The language in R.C. §2305.252, “manifests the legislature’s clear intent
to provide a complete shield to the discovery of any information used in the course of a
peer review committee’s proceedings.” Tenan v. Huston, 165 Ohio App.3d 185, 2006-
Ohio-131, 845 N.E.2d 549, at paragraph 23. However, the purpose of the statute is not
to hinder lawsuits, but to provide limited protection to individuals who provide
information to review committees or boards, thereby encouraging a free flow of
information without fear of reprisal in the form of civil liability. Browning v. Burt (1993),
66 Ohio St.3d 544, 562, 613 N.E.2d 993.
{¶35} A party asserting the privilege set forth in R.C. §2305.252 has the burden
of establishing that the privilege is applicable. See, e.g., Waldmann v. Waldmann
(1976), 48 Ohio St.2d 176, 178, 358 N.E.2d 521; Svoboda v. Clear Channel Commun.,
Inc., 156 Ohio App.3d 307, 2004-Ohio-894, 805 N.E.2d 559; Perfection Corp. v.
Travelers Cas. & Sur., 153 Ohio App.3d 28, 2003-Ohio-2750, 790 N.E.2d 817.
{¶36} Generally, the review of a trial court’s discovery order is pursuant to an
abuse of discretion standard; but when the trial court’s order contains an error of law in
misconstruing or misapplying the law, then the appellate court reviews the matter de
novo. Quinton v. MedCentral Health Sys., Richland App. No. 2006CA0009, 2006-Ohio-
4238, 2006 WL 2349548, at paragraph 13. The issue of the confidentiality of information
pursuant to R.C. §2305.252 is one of law. Id. See also, Smith v. Manor Care of Canton,
Fairfield County, Case No. 08 CA 85
9
Inc., Stark App. Nos. 2005-CA-00100, 2005-CA-00160, 2005-CA-00162, and 2005-
CA00174, 2006-Ohio-1182; Huntsman v. Aultman Hospital, Stark App. Nos.
2004CA00124 and 2004CA00142, 2005-Ohio-1482, 160 Ohio App.3d 196, 826 N.E.2d
384.
{¶37} Specifically, Appellant argues that the Hospital waived the peer review
privilege by failing to object to, move to strike or otherwise respond to Appellant’s
Motion of Extension of Time which was filed under seal and which attached certain peer
review documents. Appellant argues that once the trial court had reviewed the
privileged documents, such privilege was waived.
{¶38} Upon review, we find Appellant’s waiver argument unpersuasive. We do
not find that Appellee’s alleged inaction in not objecting to the peer review documents
Appellant attached to his Motion for Extension of Time, which was filed under seal,
resulted in a waiver of the peer review privilege.
{¶39} The trial court in this matter had granted a protective order which
prohibited Appellant from seeking “any evidence or other matters produced or
presented during the proceedings of the peer review committee or as to any finding,
recommendation, evaluation, opinion, or other action of the committee or member
thereof.” The trial court never modified or withdrew such protective order. There was
no reason for Appellee to object to the documents which Appellant attached to his
Motion as the trial court had already granted a protective order as to same.
{¶40} Ohio courts have recognized that such a broad concept of waiver would
negate the purpose of the peer review confidentiality statute. Atkins v. Walker (1981), 3
Ohio App.3d 427, 445 N.E.2d 1132.
Fairfield County, Case No. 08 CA 85
10
{¶41} Based on the foregoing, we find Appellant’s waiver argument not well-
taken and hereby overrule same.
{¶42} Appellant’s third assignment of error is denied.
I., II.
{¶43} In his first and second assignments of error, Appellant claims the trial
court erred in granting summary judgment in favor of Appellee as to Counts One and
Six of his Complaint. We disagree.
“Summary Judgment Standard”
{¶44} Summary judgment proceedings present the appellate court with the
unique opportunity of reviewing the evidence in the same manner as the trial court.
Smiddy v. The Wedding Party, Inc. (1987), 30 Ohio St.3d 35, 36. Civ.R. 56(C) provides,
in pertinent part:
{¶45} “Summary
judgment shall be rendered
forthwith
if
the pleadings,
depositions, answers to interrogatories, written admissions, affidavits, transcripts of
evidence in the pending case, and written stipulations of fact, if any, timely filed in the
action, show that there is no genuine issue as to any material fact and that the moving
party is entitled to judgment as a matter of law. * * * A summary judgment shall not be
rendered unless it appears from such evidence or stipulation and only therefrom, that
reasonable minds can come to but one conclusion and that conclusion is adverse to the
party against whom the motion for summary judgment is made, such party being
entitled to have the evidence or stipulation construed most strongly in his favor.”
{¶46} Pursuant to the above rule, a trial court may not enter a summary
judgment if it appears a material fact is genuinely disputed. The party moving for
Fairfield County, Case No. 08 CA 85
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summary judgment bears the initial burden of informing the trial court of the basis for its
motion and identifying those portions of the record that demonstrate the absence of a
genuine issue of material fact. The moving party may not make a conclusory assertion
that the non-moving party has no evidence to prove its case. The moving party must
specifically point to some evidence which demonstrates the non-moving party cannot
support its claim. If the moving party satisfies this requirement, the burden shifts to the
non-moving party to set forth specific facts demonstrating there is a genuine issue of
material fact for trial. Vahila v. Hall, 77 Ohio St.3d 421, 429, 1997-Ohio-259, citing
Dresher v. Burt, 75 Ohio St.3d 280, 1996-Ohio-107.
{¶47} It is based upon this standard that we review Appellant’s assignments of
error.
{¶48} Upon review, we find that the issues in this case are governed by the
Supreme Court’s decision in Nemazee v. Mt. Sinai Medical Ctr. (1990), 56 Ohio St.3d
109, where the syllabus states:
{¶49} “A physician in a private hospital whose employment and/or hospital
privileges have been terminated must exhaust all internal administrative remedies prior
to seeking judicial review.”
{¶50} In the instant case, Appellant, like the doctor in Nemazee, originally
requested a hearing under the hospital’s due process policy to contest the termination
or non-renewal of his privileges, but later withdrew that request and brought suit for
breach of contract. Id. at 110.
{¶51} The Supreme Court held that the doctor was required to exhaust the
administrative remedies provided in his employment contract prior to initiating suit. After
Fairfield County, Case No. 08 CA 85
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analyzing the general doctrine of exhaustion of remedies from administrative agencies,
the Court noted that the same principle applied to decisions on staff competence under
administrative due process procedures in hospitals, stating:
{¶52} “[t]he great weight of case authority in the United States is that a board of
trustees of a private hospital has the authority to appoint and remove members of the
medical staff of the hospital and to exclude members of the medical profession in its
discretion from practicing in the hospital.” ***
{¶53} Based upon Nemazee, supra, we find that Appellant failed to exhaust all
internal administrative remedies provided by the Hospital prior to seeking judicial
review. “The purpose of the exhaustion doctrine is to afford the hospital the ability to
correct its own errors; to provide a trial court with an adequate factual record upon
which to make an informed decision as established by the expert testimony of the
medical staff; and to promote judicial economy through the resolution of these disputes
without the premature need for judicial intervention.” O’Neill v. St. Luke’s Medical
Center, (1996) Cuyahoga App. No. 70372.
{¶54} Additionally, we find that Appellant failed to produce any evidence in
support of Counts One and Six of his Complaint.
Fairfield County, Case No. 08 CA 85
13
{¶55} Appellant’s first and second assignments of error are denied.
{¶56} For the foregoing reasons, the judgment of the Court of Common Pleas of
Fairfield County, Ohio, is hereby affirmed.
By: W ise, J.
Hoffman, P. J., concurs in part and dissents in part.
Edwards, J., concurs separately.
JWW/d 721
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JUDGES
Fairfield County, Case No. 08 CA 85
14
Hoffman, P.J., concurring in part and dissenting in part
{¶57} I concur
in
the majority’s analysis and disposition of Appellant’s
Assignments of Error I and III. W ith respect to the first assignment, I reject Appellant’s
argument exhaustion of administrative remedies was not necessary because
Appellant’s claim was for breach of the Settlement Agreement. Because the Settlement
Agreement required Appellant’s application for privileges to be considered on the same
basis as the application of any other physician, and all such other applications were
subject to administrative review, as set forth in the Consent and Release of Applicant
executed by Appellant, I find Appellant was also required to exhaust all administrative
remedies before initiating his lawsuit with respect to Count Six.
{¶58} I respectfully dissent from the majority’s disposition of Appellant’s
Assignment of Error II. Unlike Count Six, I do not find Count One subject to the
exhaustion of administrative remedies requirement.
{¶59} I disagree with Appellees’ assertion Appellant’s failure to specifically
address Count One in his reply to Appellees’ Motion for Reconsideration of the trial
court’s previous denial of summary judgment waives his right to raise the issue in this
appeal. Appellant’s initial reply to Appellees’ original summary judgment motion must
still be considered.
{¶60} Appellant states in his Affidavit, his contact information was not shared
with his patients in breach of the Settlement Agreement.1 While Appellees have
1 In the absence of a motion of strike Appellant’s Affidavit for lack of personal knowledge
or hearsay, such averment should be accepted when offered in defense of a motion for
summary judgment. Had a motion to strike been filed, Appellant would have had the
opportunity to cure any deficiency with additional affidavits from his patients. That is not
Fairfield County, Case No. 08 CA 85
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submitted the Affidavits of Connie Fisher and Kevin Schmelzer to prove otherwise, a
genuine issue of this material fact remains in dispute. As such, I would sustain
Appellant’s Assignment of Error II.
________________________________
HON. W ILLIAM B. HOFFMAN
to say a motion to strike the movant’s affidavit based upon lack of personal knowledge
or hearsay is necessary to defeat summary judgment.
Fairfield County, Case No. 08 CA 85
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EDWARDS, J., CONCURRING OPINION
{¶61} I concur with the analysis and disposition of this case by Judge W ise with
one exception.
{¶62} The exception is that I do not agree that Count I is subject to the
exhaustion of administrative remedies requirement. However, this disagreement does
not lead to a different disposition of the second assignment of error. This is because I
find that appellant waived his right to raise the second assignment of error on appeal by
not addressing the issue in his reply to appellee’s Motion for Reconsideration of the trial
court’s previous denial of summary judgment.
JAE/rmn
______________________________
Judge Julie A. Edwards
CHARLES LOWREY, M.D.
Plaintiff-Appellant
-vs-
FAIRFIELD MEDICAL CENTER, ET AL.
Defendant-Appellees
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JUDGMENT ENTRY
Case No. 08 CA 85
Fairfield County, Case No. 08 CA 85
17
IN THE COURT OF APPEALS FOR FAIRFIELD COUNTY, OHIO
FIFTH APPELLATE DISTRICT
For the reasons stated in our accompanying Memorandum-Opinion, the
judgment of the Court of Common Pleas of Fairfield County, Ohio, is affirmed.
Costs assessed to Appellant.
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JUDGES