Auburn Med. Ctr. v. East Alabama Health Care Auth.

847 So. 2d 942, 2001 WL 499009
CourtCourt of Civil Appeals of Alabama
DecidedMay 11, 2001
Docket2990162
StatusPublished
Cited by2 cases

This text of 847 So. 2d 942 (Auburn Med. Ctr. v. East Alabama Health Care Auth.) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Auburn Med. Ctr. v. East Alabama Health Care Auth., 847 So. 2d 942, 2001 WL 499009 (Ala. Ct. App. 2001).

Opinion

847 So.2d 942 (2001)

AUBURN MEDICAL CENTER, INC.
v.
EAST ALABAMA HEALTH CARE AUTHORITY d/b/a East Alabama Medical Center.

2990162.

Court of Civil Appeals of Alabama.

May 11, 2001.

*943 Alvin T. Prestwood of Volz, Prestwood and Hanan, P.C., Montgomery; and Hugh V. Smith, Jr., Montgomery, for appellant.

James E. Williams of Melton, Espy, Williams & Hayes, P.C., Montgomery, for appellee.

On Application for Rehearing

PER CURIAM.

The opinion of December 22, 2000, is withdrawn, and the following is substituted therefor.

Auburn Medical Center, Inc. ("Auburn Medical") appeals from a summary judgment entered in favor of East Alabama Health Care Authority d/b/a East Alabama Medical Center ("EAMC").

On October 14, 1983, Auburn Medical filed an application for a certificate of need ("CON") with the State Health Planning and Development Agency ("SHPDA"), for the construction and operation of a 64-bed hospital in Auburn. On November 21, 1983, EAMC filed an application with SHPDA seeking approval of an additional 54 beds at its existing hospital. On January 10, 1984, SHPDA approved Auburn Medical's application for a CON. On May 17, 1984, however, SHPDA (comprised of newly appointed board members) held a hearing and reversed its previous ruling regarding Auburn Medical's CON, and simultaneously denied EAMC's request. On April 4, 1987, Auburn Medical sued EAMC and SHPDA in the United States District Court for the Middle District of Alabama, claiming essentially that EAMC and SHPDA had conspired to deprive it of its CON. Auburn Medical later dismissed EAMC from that federal action. The district court dismissed all of Auburn Medical's claims except its 42 U.S.C. § 1983 claim.

On August 24, 1988, the district court held that the May 17, 1984, SHPDA hearing had been a "sham" and that it had violated Auburn Medical's Fourteenth Amendment due-process right to an impartial tribunal. Pursuant to its authority under 28 U.S.C. § 2283, "The Anti-Injunction Act," the district court enjoined SHPDA from reconsidering Auburn Medical's application and ordered that the CON be reissued to Auburn Medical. In its order, the district court stated, "[T]his Court shall retain jurisdiction of this case until further order of this Court." The federal court noted it was denying EAMC's motion to intervene, but that there remained a state-law right of judicial review of SHPDA's decision to issue the CON. SHPDA appealed the district court's decision to the Eleventh Circuit Court of Appeals, which affirmed the district court's judgment.

On January 12, 1989, EAMC filed petitions for judicial review, pursuant to §§ 22-21-275(14) and 41-22-20, Ala.Code 1975, and § 410-1-7-01(22)(d) of the SHPDA Rules and Regulations (1979), in the Lee County Circuit Court and in the Montgomery County Circuit Court. Auburn Medical filed a motion in the United States district court to stay the state-court proceedings. The district court denied the motion to stay on March 16, 1990.

On March 23, 1990, the Montgomery County Circuit Court held that SHPDA's decision to grant Auburn Medical's CON was improper, and it remanded the case to SHPDA. Auburn Medical appealed to this court, which, in an opinion entered December 19, 1990, reversed the circuit court's decision and remanded the case. Auburn Medical Ctr., Inc. v. East Alabama Health Care Auth., 583 So.2d 1342 (Ala.Civ.App. 1991). EAMC then filed a petition for certiorari review with the Alabama Supreme Court; that court subsequently *944 quashed its writ as having been improvidently granted. Ex parte East Alabama Health Care Auth., 583 So.2d 1346 (Ala. 1991). EAMC then petitioned the United States Supreme Court for review, which was denied. East Alabama Health Care Auth. v. Auburn Medical Ctr., Inc., 503 U.S. 936, 112 S.Ct. 1474, 117 L.Ed.2d 618 (1992).

EAMC then filed a motion for clarification and enforcement, with the United States district court, asking that court to effectuate the judgment and injunction it had rendered on August 24, 1988. With its motion, EAMC asked the federal court to enter an order revoking Auburn Medical's CON and enjoining SHPDA from reissuing the CON until all parties had had the opportunity to request a fair hearing. In its motion, EAMC stated that the federal court had the authority to grant its requested relief.

On June 26, 1992, the federal district court noted that EAMC had litigated its position through the state courts and had petitioned the United States Supreme Court for review. Unsuccessful in its litigation in the state courts, EAMC then returned to the federal court, asking it to disregard the state court's resolution of the issues at hand. The district court stated in its order:

"The state court judgment in this case is final. As Parsons Steelf, Inc. v. First Alabama Bank, 474 U.S. 518, 106 S.Ct. 768, 88 L.Ed.2d 877 (1986),] makes clear, the state court determination after full litigation by the parties with regard to this Court's earlier judgment has a preclusive effect, pursuant to the Full Faith and Credit Act, upon this Court's ability to act as requested by East Alabama. Nor would any action of this Court be proper under the relitigation exception to the Anti-Injunction Act. In Parsons Steel, the Supreme Court stated that the relitigation exception to the Anti-Injunction Act applies only when the state court has not yet ruled on the merits of the issue at hand: `Once the state court has finally rejected a claim of res judicata, then the Full Faith and Credit Act becomes applicable and federal courts must turn to state law to determine the preclusive effect of the state court's decision.' 474 U.S. at 524. In this case, there has been a final adjudication in state court as to the rights of the parties and such adjudication must be given full faith and credit by this Court."

On December 7, 1992, SHPDA approved Auburn Medical's request for a project modification, because changes had occurred in the hospital industry since the original CON was granted in 1983, with a termination date for the CON of December 6, 1993. On November 2, 1993, Auburn Medical entered into a construction contract with The Robins and Morton Group.[1] On November 4, 1993, Auburn Medical informed SHPDA that it had a contract for the construction of the hospital in compliance with §§ 410-1-2-.13 and 410-1-11-.02 of the SHPDA rules and regulations. Auburn Medical filed a letter with SHPDA, stating that the project architect was ready to begin construction on the hospital as of April 28, 1994.[2] On August 15, 1994, SHPDA sent Auburn Medical a letter advising it that the construction contract met the requirement of *945 a firm commitment and obligation to go forward with such project. The letter also advised Auburn Medical that the CON was extended for 12 months and that the terms of the contract, including the time frames, were between Auburn Medical and The Robins and Morton Group.

On November 9, 1994, EAMC, through its partner, Health Horizons, Inc., applied for a CON to construct and operate an ambulatory surgery center in Auburn.

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Related

Auburn Medical Center, Inc. v. Cobb
567 F. Supp. 2d 1333 (M.D. Alabama, 2008)
Ex Parte East Alabama Health Care Authority
847 So. 2d 951 (Supreme Court of Alabama, 2002)

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Bluebook (online)
847 So. 2d 942, 2001 WL 499009, Counsel Stack Legal Research, https://law.counselstack.com/opinion/auburn-med-ctr-v-east-alabama-health-care-auth-alacivapp-2001.