Shenoy v. Charlotte-Mecklenburg Hosp. Auth. (Summary)

INTERFERENCE WITH CONTRACT

Shenoy v. Charlotte-Mecklenburg Hosp. Auth., No. 12-1786 (4th Cir. May 13, 2013)

A pathologist brought suit against a hospital after he was terminated by his medical group.  This followed after the hospital, pursuant to the hospital’s contract with the group, had requested the pathologist be removed from hospital practice.  The hospital’s action was the result of the pathologist’s loud outburst at a committee meeting in which he accused hospital administration of systematic failures.  The pathologist claimed that the hospital’s actions were a violation of his First Amendment rights, interfered with his medical group contract, and were taken in retaliation for a False Claims Act (“FCA”) action he had filed.  The United States Court of Appeals for the Fourth Circuit affirmed the lower court’s grant of summary judgment in favor of the hospital on all counts.

As for the First Amendment claim, the circuit court held that as the pathologist’s comments were made pursuant to his official duties as chair of the quality improvement committee, they were unprotected by the First Amendment.  The circuit court rejected the pathologist’s argument that since his committee position was voluntary and unpaid, it could not be part of his official duties.

The circuit court also rejected the pathologist’s claim that the hospital interfered with his group contract, leading to his termination.  The court stated that, under the hospital’s contract with the group, the hospital had the absolute right to request the pathologist’s removal.  The group had also tried to assign the pathologist to another setting, but the pathologist was unwilling to accept that reassignment.

The circuit court also held that there was no link between the pathologist’s FCA claim and the pathologist’s termination. Neither the group nor the hospital was aware of the filing, and the filing had occurred nearly three years before his termination.