Austin v. American Ass'n of Neurological Surgeons

120 F. Supp. 2d 1151, 2000 U.S. Dist. LEXIS 19181, 2000 WL 1692828
CourtDistrict Court, N.D. Illinois
DecidedOctober 20, 2000
Docket98 C 7685
StatusPublished

This text of 120 F. Supp. 2d 1151 (Austin v. American Ass'n of Neurological Surgeons) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Austin v. American Ass'n of Neurological Surgeons, 120 F. Supp. 2d 1151, 2000 U.S. Dist. LEXIS 19181, 2000 WL 1692828 (N.D. Ill. 2000).

Opinion

MEMORANDUM OPINION AND ORDER

BUCKLO, District Judge.

From 1963 to 1996, Dr. Donald C. Austin, a citizen of Michigan, was a member of the American Association of Neurological Surgeons (the “AANS”), a professional association incorporated under Illinois law and with its principal place of business in this state. In 1996, the AANS suspended Dr. Austin for violating its Code of Ethics and Expert Witness Guidelines. When charged in 1995, he submitted a letter of resignation. However, rather than accepting the resignation at that time, the AANS decided to proceed with disciplinary charges that Dr. Austin provided “entirely false” testimony in a medical malpractice lawsuit against another physician, Dr. Michael Ditmore. Dr. Austin was represented by counsel throughout the proceedings, which resulted, in 1996, in a six-month suspension from membership in the AANS. In 1997, Dr. Austin appealed twice and lost. The Board then accepted his resignation. He never applied for readmission.

In 1998, Dr. Austin filed this diversity lawsuit, to be decided under Illinois law, alleging that the AANS had violated his due process rights secured to him by state law, essentially because he acted in favor of medical malpractice plaintiffs and refused to circle the wagons and justify professional incompetence by other doctors. He alleged that the AANS’s unjustified and unfair actions had cost him a lot of money in expert witness fees, because the disciplinary charges made him less attractive as an expert witness. Who, after all, wants an expert who has to acknowledge that he was suspended from his professional association for ethical violations he was found to have committed as an expert witness? The AANS now moves for summary judgment, and I grant the motion.

I.

As a court sitting in diversity, I “attempt to predict how the [Illinois] Supreme Court would decide the issues presented here.” Lexington Ins. Co. v. Rugg & Knopp, 165 F.3d 1087, 1090 (7th Cir. 1999). In Illinois, voluntary associations have great discretion in conducting their internal affairs, and their conduct is “subject to judicial review only when they fail to exercise power consistently with their own internal rules or when their conduct violates the fundamental right of a member to a fair hearing.” Finn v. Beverly Country Club, 289 Ill.App.3d 565, 225 Ill.Dec. 528, 683 N.E.2d 1191, 1193 (1997). If there has been no “mistake, fraud, collusion or arbitrariness,” id., the Illinois Supreme Court has endorsed judicial interference only when a substantial property, contract, or other economic right that implicates due process is at stake. See Van Daele v. Vinci, 51 Ill.2d 389, 282 N.E.2d 728 (1972). As that court stated, “[a]l-though the courts in this State have traditionally been reluctant to interfere in the internal operations of associations, [a] strong possibility that an important economic interest of the plaintiffs was affected by an improper administrative proceeding gives the court-power and the duty to act.” Id. at 731. Illinois courts will only review the decisions of private associations when *1153 “the plaintiffs possess[ ] an important economic interest based on the individual’s opportunity for ... pursuing their livelihood which was affected by improper administrative procedures.” Knapp v. Northwestern Univ., No. 95 C 6454, 1996 WL 495559, at *1 (N.D.Ill. Aug.28, 1996) (unpublished opinion of Zagel, J.) (citing Van Daele, 282 N.E.2d at 731; Virgin v. Amer. Coll. of Surgeons, 42 Ill.App.2d 352, 192 N.E.2d 414, 422-23 (1963); Duly v. Amer. Coll. of Surgeons, 468 F.2d 364, 368-69 (7th Cir.1972)). In these cases, Judge Zagel explained:

[T]he plaintiffs suffered direct and real economic harm to their ability to earn a living as a result of their expulsion from the professional associations. As a result, the courts held they would annul an expulsion from a voluntary association when the expulsion is not in accordance with the constitution and bylaws of the association, is influenced by bias, prejudice or lacking in good faith, or contrary to rudimentary due process or natural justice.

Id. The key points, then, are that under Illinois law, a court may review the internal procedures of a voluntary association with respect to its members only when: (1) the operation of the association significantly harms an important economic interest of the plaintiff belonging to the association when it acted; (2) the association (a) failed to act in accord with its own constitution and bylaws; (b) was influenced by bias, prejudice, or lacking in good faith, or (c) violated due process. This power exists, furthermore (3), only when the association has “a [public] purpose which exceeds merely that of a social organization and its endeavor to benefit from various State and Federal laws.” Van Daele, 282 N.E.2d at 732.

II.

A.

The AANS does not dispute that it has a public purpose exceeding that of a mere social organization, and Dr. Austin does not argue that the association failed to follow its own rules, but rather challenges the fairness and application of those rules to his case. Dr. Austin has brought forward sufficient evidence that the Association’s actions have significantly affected his economic interests by causing him to lose many hundreds of thousands of dollars in expert witness fees. The AANS contends that Dr. Austin has not established that membership in the association is an “economic necessity,” but in Illinois, the standard is whether the association’s actions significantly affected “an important economic interest.” Van Daele, 282 N.E.2d at 731. To recover under Illinois law a member of a private association need not show that he will be rendered homeless or even driven to bankruptcy by its unfair action that caused him significant economic harm.

B.

The question then comes down to whether the AANS deprived Dr. Austin of due process or treated him with bad faith in subjecting him to discipline. In Illinois, “[t]he term ‘due process of law’ is an ever-maturing concept that evolves from our history and precedent and is not amenable to precise definition.” People v. Washington, 171 Ill.2d 475, 216 Ill.Dec. 773, 665 N.E.2d 1330, 1338 (1996). However, in the context of the fairness of proceedings, “[t]he essence of due process is the opportunity to be heard at a meaningful time and in a meaningful manner.” Petersen v. Chicago Plan Commission, 302 Ill.App.3d 461, 236 Ill.Dec. 305, 707 N.E.2d 150, 154 (1998). The Illinois Supreme Court has acknowledged that a voluntary association need not strictly adhere to “judicial standards of due process,”

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120 F. Supp. 2d 1151, 2000 U.S. Dist. LEXIS 19181, 2000 WL 1692828, Counsel Stack Legal Research, https://law.counselstack.com/opinion/austin-v-american-assn-of-neurological-surgeons-ilnd-2000.