Brown v. Presbyterian Healthcare Services

101 F.3d 1324, 1996 WL 685700
CourtCourt of Appeals for the Tenth Circuit
DecidedNovember 29, 1996
Docket95-2293, 96-2013
StatusPublished
Cited by29 cases

This text of 101 F.3d 1324 (Brown v. Presbyterian Healthcare Services) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Presbyterian Healthcare Services, 101 F.3d 1324, 1996 WL 685700 (10th Cir. 1996).

Opinion

BRORBY, Circuit Judge.

Dr. Arlene Brown, a family physician, and her professional association, Family Practice Associates, P.C. (hereinafter collectively referred to as “Dr. Brown”), brought suit against Presbyterian Healthcare Services, Valerie Miller, Vickie Williams, D.O., Sierra Blanca Medical Associates, PA., and Gary Jackson, D.O., seeking injunctive relief and damages for violation of Sections 1 and 2 of the Sherman Act, 15 U.S.C. §§ 1 and 1px solid var(--green-border)">2 (1994), unreasonable restraint of trade and unfair trade practices in violation of Section 57 of the New Mexico Annotated Statutes, bad faith breach of contract, intentional interference with contract, defamation, and prima, facie tort. Dr. Brown’s causes of action arose from the revocation of her obstetrical hospital staff privileges by Lincoln County Medical Center, 1 and from the hospital’s subsequent report of this revocation to the National Practitioner Data Bank under the category of “Incompetence/ Malprae-tiee/Negligence.” According to Dr. Brown, the defendants’ “anticompetitive motives” were at the. heart of these actions. ■

After a three week jury trial, the jury rendered a verdict in favor of Dr. Brown on the defamation claim, tortious interference with contract claim, and certain of her antitrust claims. Thereafter, the district court set aside the jury’s awards of damages on the tortious interference with contract claim, and the jury’s award of punitive damages against Dr. Williams on the antitrust claims. Dr. Brown and Defendants Presbyterian Healthcare Services, Ms. Miller and Dr. Williams appeal from the district court’s order and amended judgment.

I. Factual Background

Dr. Arlene Brown, a Board-certified family physician, began practicing family medicine in Ruidoso, New Mexico, in 1983. Dr. Brown joined the medical staff of Lincoln County Medical Center, and in 1992 she held clinical privileges at the hospital in obstetrics and other areas. Dr. Vickie Williams, a physician specializing in obstetrics and gynecology in Ruidoso, is an economic competitor of Dr. Brown.

In early 1992, Dr. Williams participated in an informal peer review of three patients treated by Dr. Brown. Dr. Williams expressed concerns about the quality of care reflected in the patients’ charts and prepared typewritten comments on the charts. Valerie Miller, Lincoln County Medical Center’s Administrator, thén referred the charts to specialists outside the hospital for review. The outside reviewing physicians’ comments were submitted to Lincoln County Medical Center’s Executive Committee. At a meeting of the Executive Committee on July 13, 1992, Dr. Brown agreed to a requirement to consult with an obstetrics specialist in treating high-risk obstetrical patients.

In February 1993, Valerie Miller instituted formal peer review proceedings against Dr. Brown by sending a complaint to the Medical Staff Executive Committee, charging Dr. Brown with failure to abide by the *1328 consultation agreement. The Executive Committee instituted formal peer review proceedings against Dr. Brown by appointing a panel of three physicians to conduct a hearing on the complaint. At the hearing in April 1993, the panel reviewed the charts of two patients treated by Dr. Brown and heard testimony from Dr. Williams and Dr. Brown. The next day, the hearing panel issued its report, concluding Dr. Brown breached her agreement to obtain appropriate consultation and recommending removal of Dr. Brown’s obstetrical privileges. Thereafter, the Medical Executive Committee approved the panel’s recommendation and Lincoln County Medical Center’s Board of Trustees adopted the recommendation. 2

Following the Board of Trustees’ disciplinary action, Lincoln County Medical Center submitted a report to the National Practitioner Data Bank concerning the revocation of Dr. Brown’s obstetrical privileges. 3 Glenda Perry, the hospital’s medical staff coordinator, prepared the report in collaboration with Ms. Miller. One blank on the report called for insertion of an “Adverse Action Classification Code.” Ms. Perry and Ms. Miller settled on the code entitled “Incompetence/ Malpractice/ Negligence.”

When Dr. Brown received a copy of the hospital’s data bank report, she submitted a report of her own to the National Practitioner Data Bank stating Lincoln County Medical Center never found her negligent, incompetent or guilty of malpractice. The National Practitioner Data Bank then notified Lincoln County Medical Center of Dr. Brown’s objection to the report, and provided the hospital with an opportunity to revise its report. However, the hospital elected not to amend the data bank report.

Although unrelated to the revocation of Dr. Brown’s obstetrical privileges, in 1992 a family practice physician named Dr. Mark Reib contacted a Presbyterian Healthcare Services recruiter to discuss family medicine practice opportunities in Ruidoso, New Mexico. When Dr. Reib expressed an interest in joining Dr. Brown’s practice, the recruiter informed Dr. Reib the hospital would only offer him a financial recruitment package if he were to go to work for Lincoln County Medical Center or in direct competition with Dr. Brown. Dr. Reib chose not to join Dr. Brown’s medical practice.

II. Trial and Subsequent Procedural History

In March 1995, the trial of this action commenced before a jury. Almost three weeks later, the jury returned a special verdict in Dr. Brown’s favor on her defamation claim, intentional interference with contract claim, and on certain of her antitrust claims. 4 The district court entered judgment in accordance with the jury’s findings, trebling, as required by law, 5 the antitrust damages against Ms. Miller and Dr. Williams. Thereafter, pursuant to Fed.R.Civ.P. 50(b) and 59(c), the defendants filed a motion for judgment as a matter of law or to alter or amend the judgment or for a new trial. In a com *1329 prehensive and detailed “Memorandum Opinion and Order,” the district court set aside the jury’s award of compensatory and punitive damages against Presbyterian Healthcare Services on the intentional interference with contract claim, and the jury’s award of punitive damages against Dr. Williams on the antitrust claim. 6 The district court rejected all of the defendants’ remaining arguments and entered an amended judgment in conformity with its opinion.

Dr. Brown appeals the district court’s amended judgment, raising two issues: (1) whether the district court erred in vacating the compensatory and punitive damages awards for tortious interference with contract and (2) whether the district court erred in vacating the punitive damages award against Dr. Williams.

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Bluebook (online)
101 F.3d 1324, 1996 WL 685700, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-presbyterian-healthcare-services-ca10-1996.