Va. Hosp. Ctr.-Arlington Health Sys. v. Akl (Summary)

PHYSICIAN BANKRUPTCY

Va. Hosp. Ctr.-Arlington Health Sys. v. Akl (In re Akl), Adversary No. 07-10026 (Bankr. No. 07-00256) (Bankr. D.D.C. June 15, 2011)

The United States Bankruptcy Court for the District of Columbia granted summary judgment to a hospital and its counsel as to a physician’s counterclaim seeking sanctions for the filing of a non‑dischargeability claim. The physician had previously commenced eight lawsuits in state court against the hospital based on its revocation of his clinical privileges. That court dismissed the physician’s claims and prohibited the physician from filing any more complaints regarding the revocation of his privileges without its permission. In a separate action, it also awarded attorney’s fees to the hospital for the dismissed claims. Subsequently, the physician filed for bankruptcy. The hospital sought to have its award declared non-dischargeable in Bankruptcy Court, but after being denied summary judgment, did not pursue its claim. However, the physician filed a motion for sanctions claiming that the hospital’s initiation of proceedings in Bankruptcy Court was without merit and done solely to harass him. The Bankruptcy Court disagreed and granted summary judgment in favor of the hospital and its counsel, finding that the ruling by the state court demonstrated a colorable basis for commencing the non-dischargeability action.