Avallone v. Wilmington Medical Center, Inc.

553 F. Supp. 931, 115 L.R.R.M. (BNA) 4941, 1982 U.S. Dist. LEXIS 9853
CourtDistrict Court, D. Delaware
DecidedDecember 30, 1982
DocketCiv. A. 80-459
StatusPublished
Cited by15 cases

This text of 553 F. Supp. 931 (Avallone v. Wilmington Medical Center, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Avallone v. Wilmington Medical Center, Inc., 553 F. Supp. 931, 115 L.R.R.M. (BNA) 4941, 1982 U.S. Dist. LEXIS 9853 (D. Del. 1982).

Opinion

MEMORANDUM OPINION

LATCHUM, Chief Judge.

Plaintiff, Nancy Avallone, originally filed this action against the Wilmington Medical Center, Inc. (“WMC”), her former employer, in the Superior Court of the State of Delaware in and for New Castle County on August 28, 1980. (Docket Item [“D.I.”] 1.) The defendant thereafter removed that action to this Court on September 23, 1980, pursuant to 28 U.S.C. § 1441(b) because Counts VII and VIII were founded on alleged claims arising under the United States Constitution, namely a denial of plaintiff’s rights under the First, Fifth and Fourteenth Amendments to the United States Constitution. (D.I. 1, ¶¶28 & 29.) The other counts of the complaint asserted six pendent state claims as follows: Count I — breach of contract; Count II — wrongful retaliatory discharge in violation of public policy; 1 Count III — libel and slander; Count IV — defamation; Count V — intentional and/or negligent infliction of severe emotional distress; and Count VI — invasion of privacy. (D.I. 1.)

The defendant has moved to dismiss, pursuant to F.R.Civ.P. 41(b) and Local Rule 5.2, for failure to prosecute, 2 or in the alternative, for summary judgment under F.R. Civ.P. 56 on all remaining counts. (D.I. 39.)

I. Plaintiff’s Contentions.

The plaintiff was employed as a Registered Nurse by WMC from 1967 until 1971 when she was promoted to Head Nurse. (D.I. 9, ¶ 1.) She continued to work in that capacity until she resigned by letters dated July 11 and 20,1978 (D.I. 9, ¶4, Ex. 3 & 4). According to plaintiff, WMC in the spring of 1978 instructed its employees, including the plaintiff, to use a new method of feeding patients called “drip tube feeding,” which partially replaced the “syringe” method already in use. Plaintiff claimed that the new method required more time and greater supervision than the older method and she so warned the WMC of these drawbacks and the inherent dangers involved with drip feeding (D.I. 1, ¶¶ 10-17). Plaintiff contends that, as a reaction to her warnings, WMC through other of its employees, advised plaintiff to stop “making waves” and was given “a false negative job performance evaluation which suggested that plaintiff did not follow hospital policy and was an ineffective administrator.” (Id. ¶ 18.) Plaintiff further alleges that the performance evaluation and its contents were disseminated by WMC to other unknown parties. (Id.). In addition, she contends that two of WMC’s employees “threatened plaintiff with disciplinary action if she contested the negative ‘evaluation’ and if she failed to ‘resign’ from her *933 head nurse position” (id., ¶ 19), and that she was in fact forced to resign, effective August 30, 1978. (Id. ¶ 20.)

II. Counts VII and VIII — Constitutional Claims.

As previously noted the complaint contains two counts alleging constitutional violations. In Count VII, plaintiff contends that WMC forced her resignation, solely in retaliation for her speech advising her superiors of the dangerous use of drip-tube feeding, in violation of her rights of freedom of speech guaranteed by the First and Fourteenth Amendments. (D.1.1, ¶ 28.) In Count VIII, plaintiff alleges that by singling her out for dismissal and by dismissing her arbitrarily without a hearing, WMC denied her equal protection of law and due process of law in violation of the Fourteenth Amendment. (Id. ¶29.) 3 WMC seeks summary judgment on these two counts on the ground that WMC is a private, non-profit corporation whose conduct is not within the reach of the Fourteenth Amendment.

Without question the Fourteenth Amendment applies only to actions that may fairly be said to be those of the “States” and not to actions of private individuals or entities. Jackson v. Metropolitan Edison Co., 419 U.S. 345, 95 S.Ct. 449, 42 L.Ed.2d 477 (1974); Adickes v. S.H. Kress & Co., 398 U.S. 144, 90 S.Ct. 1598, 26 L.Ed.2d 142 (1970); Shelley v. Kraemer, 334 U.S. 1, 13, 68 S.Ct. 836, 842, 92 L.Ed. 1161 (1948); Civil Rights Cases, 109 U.S. 3, 3 S.Ct. 18, 27 L.Ed. 835 (1883).

Thus, it is necessary to carefully examine the undisputed facts to determine whether the WMC’s alleged negative evaluation and constructive discharge of plaintiff can be said to have been state actions. The undisputed facts show that WMC has never received any financial assistance from local, state or federal governments. (D.I. 41, ¶ 2.) Although WMC is reimbursed for cost of care provided to patients eligible for medicare and medicaid programs, WMC does not receive any other kinds of government funds, including construction funds under the Hill-Burton Act, 42 U.S.C. § 291 et seq. (Id. ¶¶ 3, 4 & 5.)

The receipt of medicare and medicaid funds is insufficient to convert WMC’s private actions into conduct actionable under the Fourteenth Amendment. See Blum v. Yaretsky, - U.S. -, 102 S.Ct. 2777, 73 L.Ed.2d 534 (1982). In Blum, the Court held that a private nursing home’s conduct was not state action despite the home’s dependence upon funding by the State of New York. Similarly, in a companion case, Rendell-Baker v. Kohn,-U.S.-, 102 S.Ct. 2764, 73 L.Ed.2d 418 (1982), the Supreme Court rejected the argument that the conduct of a private school which derived virtually all of its income from state funding was state action. The receipt of state funds, according to the Supreme Court, did not make the acts of the private nursing home or private school acts of the States.

The school, like the nursing homes, is not fundamentally different from any private corporations whose business depends primarily on contracts to build roads, bridges, dams, ships, or submarines for the government. Acts of such private contractors do not become acts of the government by reason of their significant or even total engagement in performing public contracts.

-U.S. at-, 102 S.Ct. at 2770. Thus, WMC’s receipt of medicare and medicaid funds does not render its conduct state action.

*934 Furthermore, the fact that WMC is licensed by the State and is subject to state health regulations is likewise insufficient as a matter of law to render WMC’s conduct towards plaintiff’s state action. In Blum, supra, the Supreme Court held that:

“[t]he mere fact that a business is subject to state regulation does not by itself convert its action to that of the State for purposes of the Fourteenth Amendment.” ...

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Davis v. Town of South Bethany Beach
Superior Court of Delaware, 2022
Carroll v. ABM Janitorial Services-Mid Atlantic, Inc.
970 F. Supp. 2d 292 (D. Delaware, 2013)
Jarrard v. United Parcel Service, Inc.
529 S.E.2d 144 (Court of Appeals of Georgia, 2000)
Lloyd v. Jefferson
53 F. Supp. 2d 643 (D. Delaware, 1999)
Barker v. Huang
610 A.2d 1341 (Supreme Court of Delaware, 1992)
Mattern v. Hudson
532 A.2d 85 (Superior Court of Delaware, 1987)
Heller v. Dover Warehouse Market, Inc.
515 A.2d 178 (Superior Court of Delaware, 1986)
Candelora v. Clouser
621 F. Supp. 335 (D. Delaware, 1985)
Correa v. Pennsylvania Mfrs. Ass'n Ins. Co.
618 F. Supp. 915 (D. Delaware, 1985)
Meding v. Hurd
607 F. Supp. 1088 (D. Delaware, 1985)
Little v. York County Earned Income Tax Bureau
481 A.2d 1194 (Supreme Court of Pennsylvania, 1985)
Reiver v. MURDOCH & WALSH, PA
625 F. Supp. 998 (D. Delaware, 1985)
Plummer v. Abbott Laboratories
568 F. Supp. 920 (D. Rhode Island, 1983)

Cite This Page — Counsel Stack

Bluebook (online)
553 F. Supp. 931, 115 L.R.R.M. (BNA) 4941, 1982 U.S. Dist. LEXIS 9853, Counsel Stack Legal Research, https://law.counselstack.com/opinion/avallone-v-wilmington-medical-center-inc-ded-1982.