Appalachian Regional Healthcare, Inc. v. U.S. Nursing Corporation

CourtDistrict Court, E.D. Kentucky
DecidedSeptember 24, 2021
Docket7:14-cv-00122
StatusUnknown

This text of Appalachian Regional Healthcare, Inc. v. U.S. Nursing Corporation (Appalachian Regional Healthcare, Inc. v. U.S. Nursing Corporation) is published on Counsel Stack Legal Research, covering District Court, E.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Appalachian Regional Healthcare, Inc. v. U.S. Nursing Corporation, (E.D. Ky. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF KENTUCKY SOUTHERN DIVISION PIKEVILLE

APPALCHIAN REGIONAL CIVIL NO. 7:14-122-KKC-EBA HEALTHCARE, INC., Plaintiff, V. OPINION AND ORDER U.S. NURSING CORPORATION, Defendant.

******** With this action, Appalachian Regional Healthcare, Inc. has been seeking indemnification for the amounts it expended to defend and settle a state court action that was filed against it in 2008. After a trial in this Court on the indemnification claim, a jury ruled in Appalachian's favor. The case is now before the Court on remand from the United States Court of Appeals for the Sixth Circuit to determine if an error in one of the Court's evidentiary rulings requires a new trial. See Appalachian Reg'l Healthcare, Inc. v. U.S. Nursing Corp., 824 F. App'x 360, 370 (6th Cir. 2020). The Court concludes it does not. * * * Appalachian provides medical services in Eastern Kentucky, including at its hospital located in Whitesburg, Kentucky. Defendant U.S. Nursing Corporation is a staffing agency that provided nurses to Appalachian on a temporary basis when Appalachian was short-staffed. The staffing agreement between the parties required U.S. Nursing to indemnify Appalachian from "any and all liability or damage that arises from . . . the negligent or intentional act or omission" of U.S. Nursing or its employees. (DE 52-1, Staffing Agreement, § D(15)). The state court action that forms the basis for Appalachian’s indemnification claim was filed by Ralph Profitt and his wife after Proffitt suffered a severe spinal cord injury while working at a sawmill in 2007. Some co-workers (David English and Ken Jaworski) drove Profitt in a pick-up truck from the workplace to a hospital in Whitesburg Kentucky that is operated by Appalachian. In the state court action, Profitt alleged that his injuries were worsened when a nurse moved him into the hospital

emergency room ("ER") without stabilizing and immobilizing him. (DE 242-9, Amended Complaint.) There was no dispute that the nurse who moved Profitt was female. Significant to this case, two nurses working at the hospital at the time of the incident – Sheila Hurt and Roxanna Parsons – were Appalachian employees. One nurse – Constance Foote – was a U.S. Nursing employee. These three nurses were the only female nurses in the ER on the night in question. (DE 380, U.S. Nursing Br. at 1; DE 383, U.S. Nursing Reply at 1.) If Nurse Foote was the nurse who moved Profitt into the ER, then, pursuant to the indemnification agreement, U.S. Nursing was potentially liable to Appalachian for the actions of its employee. If, on the other hand, Nurse Foote did not move Profitt, then U.S. Nursing could not possibly be liable to Appalachian. In the state court action, there was never any real dispute about whether Nurse Foote was the nurse who moved Profitt. Profitt and his co-worker English were the only witnesses to the event who recalled the identity of the nurse. Both identified Nurse Foote. There was no argument or evidence in state court that either Hurt or Parsons was the nurse who moved Profitt into the ER. When Hurt and Parsons pointed that out to the state court in a motion for summary judgment (DE 239-7), no party objected to their dismissal from the action or pointed to any evidence that either nurse was the one who moved Profitt. Thus, the state court granted both Appalachian nurses summary judgment. (DE 208-13, Aug. 23, 2012 Order.) A couple of weeks later, U.S. Nursing filed its own motion for summary judgment in the state court action arguing that it could not be liable for Nurse Foote's actions under Kentucky's borrowed-servant doctrine. (DE 1-2, Mot. for Summ. J.) Years later, as the state court case progressed toward trial, the state court entered an order prohibiting any party from arguing or introducing evidence at trial that

either Nurse Hurt or Parsons was the individual who moved Profitt into the ER. (DE 208-11, March 26, 2016 Order.) The state court noted that "all parties had an opportunity to respond to the motions for summary judgment filed on behalf of Hurt and Parsons" and that U.S. Nursing "chose not to do so." Thus, the state court determined that "[t]he liability of Hurt and Parsons has been litigated and resolved." On the last business day before the state court trial was set to commence in 2016, both Appalachian and U.S. Nursing settled the claims against them. Appalachian paid the Profitts $2 million. It incurred legal fees and costs of $823,522.71 in the state court action. Appalachian demanded that U.S. Nursing indemnify it for those amounts. U.S. Nursing refused do so, which caused Appalachian to bring this claim in federal court against U.S. Nursing for breach of the indemnification provision of the staffing agreement. * * * As with the underlying state court action, prior to trial on the indemnification claim, this Court granted Appalachian’s motion (DE 239) to exclude any argument or testimony at trial that Nurse Hurt or Parsons (the two Appalachian employees) moved Profitt from the truck into the ER. In its motion, Appalachian argued that the liability of Nurses Hurt and Parsons had been resolved by the state court's summary judgment order and, thus, pursuant to the doctrine of issue preclusion, U.S. Nursing was barred from relitigating that issue. In response (DE 271) to Appalachian's motion, U.S. Nursing did not address the issue-preclusion argument. Instead, it argued that there was evidence that Nurse Foote did not move Profitt and that it was entitled to present that evidence at trial. (DE 271, Response at 4, 5.) Appalachian's motion did not, however, ask the Court to prohibit U.S. Nursing from introducing any evidence at trial that Nurse Foote did not move Profitt. The issue

raised by Appalachian's motion was whether U.S. Nursing could present evidence or argue that Nurses Parsons or Hurt did move Profitt. In its response to the motion, U.S. Nursing did not point to any such evidence regarding Nurse Parsons. As to Nurse Hurt, U.S. Nursing pointed only to two pieces of evidence: 1) Profitt's hospital chart contained Nurse Foote's name, initials, and handwriting, indicating she treated him after he was inside the ER; and 2) Profitt testified that the nurse who transported him into the ER later treated him. (DE 271, Response at 2.) At a status conference just days before trial was set to begin, the Court asked U.S. Nursing directly, "what evidence do you have that it was either Nurse Hurt or Nurse Parsons" who moved Profitt. (DE 353, Tr. at 6799.) U.S. Nursing again pointed to the same two pieces of evidence discussed above, both of which only involved Nurse Hurt. It argued that 1) Profitt testified that the female who pushed him into the ER "stayed with me the entire time and performed all procedures," (DE 353, Tr. at 6800); and 2) Nurse Hurt's "name and initials are all over [Profitt's medical] chart." (DE 353, Tr. at 6799.) U.S. Nursing pointed to no evidence involving Nurse Parsons, and U.S. Nursing's counsel made clear he intended to point the finger only at Nurse Hurt. He stated his intent was to argue that "the testimony points to some nurse that was performing procedures on Mr. Profitt and stayed with Mr. Profitt the entire time he was there. . . I was planning to argue that Sheila Hurt's name is all over the chart. Sheila Hurt was the one that went back and performed all the procedures." (DE 353, Tr. at 6813.) The Court ultimately declined to reconsider its ruling precluding U.S. Nursing from producing this evidence at trial. (DE 321, 348.) After a seven-day trial, the jury returned a verdict for Appalachian. The Court conducted the trial in two phases. In the first phase, the jury was asked to decide two

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Appalachian Regional Healthcare, Inc. v. U.S. Nursing Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/appalachian-regional-healthcare-inc-v-us-nursing-corporation-kyed-2021.