Med. Staff of Avera Marshall Reg’l. Med. Ctr. v. Avera Marshall (Summary)

BYLAWS/CONTRACT

Med. Staff of Avera Marshall Reg’l. Med. Ctr. v. Avera Marshall, No. A12-2117 (Minn. Ct. App. July 22, 2013)

The Minnesota Court of Appeals affirmed the trial court’s decision in favor of the medical center, finding that the medical staff was not a separate legal entity and therefore lacked the capacity to sue or be sued.  The appeals court also found that the medical staff bylaws did not create a contractual relationship between the medical staff and the medical center.

The medical staff brought an action seeking to have the court declare that a medical staff has standing and capacity to sue.  The appeals court, in agreement with the trial court, found that under Minnesota law unincorporated associations, like the medical staff, do not have the capacity to sue or be sued.  The medical staff also sought to enjoin the medical center from repealing the existing bylaws and imposing new bylaws, claiming that the bylaws constitute an enforceable contract.  However, the appeals court held that the medical center retained authority to unilaterally modify the bylaws and that the bylaws are not a contract.