Camden-Clark Memorial Hospital, Inc. v. Marietta Area Healthcare, Inc.

CourtWest Virginia Supreme Court
DecidedMay 14, 2025
Docket23-569
StatusPublished

This text of Camden-Clark Memorial Hospital, Inc. v. Marietta Area Healthcare, Inc. (Camden-Clark Memorial Hospital, Inc. v. Marietta Area Healthcare, Inc.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Camden-Clark Memorial Hospital, Inc. v. Marietta Area Healthcare, Inc., (W. Va. 2025).

Opinion

IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA

January 2025 Term FILED May 14, 2025 _____________________ released at 3:00 p.m. C. CASEY FORBES, CLERK SUPREME COURT OF APPEALS No. 23-569 OF WEST VIRGINIA _____________________

CAMDEN-CLARK MEMORIAL HOSPITAL CORPORATION; CAMDEN-CLARK HEALTH SERVICES, INC.; WEST VIRGINIA UNITED HEALTH SYSTEM, INC. d/b/a WEST VIRGINIA UNIVERSITY HEALTH SYSTEM; and WEST VIRGINIA UNIVERSITY HOSPITALS, INC., Defendants Below, Petitioners,

v.

MARIETTA AREA HEALTHCARE, INC.; MARIETTA MEMORIAL HOSPITAL; and MARIETTA HEALTHCARE PHYSICIANS, INC., Plaintiffs Below, Respondents.

___________________________________________________________

Certified Questions from the United States District Court for the Northern District of West Virginia The Honorable John Preston Bailey, Judge Civil Action No. 5:23-cv-131

CERTIFIED QUESTIONS ANSWERED _________________________________________________________

Submitted: January 29, 2025 Filed: May 14, 2025 Andrew B. Cooke, Esq. J. Zak Ritchie, Esq. Natalie B. Atkinson, Esq. Michael B. Hissam, Esq. Thomas Combs & Spann, PLLC Max C. Gottlieb, Esq. Charleston, West Virginia Carl W. Shaffer, Esq. Attorneys for Petitioners Hissam Forman Donovan Ritchie PLLC Charleston, West Virginia Attorneys for Respondents

JUSTICE TRUMP delivered the Opinion of the Court.

JUSTICE BUNN concurs in part and dissents in part and reserves the right to file a separate opinion.

JUSTICE WALKER, deeming herself disqualified, did not participate in the decision of this case.

JUDGE JENNIFER F. BAILEY, sitting by temporary assignment.

JUSTICE ARMSTEAD, deeming himself disqualified, did not participate in the decision of this case.

JUDGE SEAN K. HAMMERS, sitting by temporary assignment. SYLLABUS BY THE COURT

1. “‘A de novo standard is applied by this Court in addressing the legal

issues presented by a certified question from a federal district or appellate court.’ Syllabus

Point 1, Light v. Allstate Ins. Co., 203 W. Va. 27, 506 S.E.2d 64 (1998); Syllabus Point 1,

Martinez v. Asplundh Tree Expert Co., 239 W. Va. 612, 803 S.E.2d 582 (2017).’” Syllabus

Point 1, Fields v. Mellinger, 244 W. Va. 126, 851 S.E.2d 789 (2020).

2. A claim for negligent supervision in West Virginia requires proof of

the traditional elements of negligence – duty, breach, causation, and damages –

supplemented by the additional necessity of demonstrating a tortious act or omission by

the employee whose conduct forms the basis of the claim.

3. If an employer has a duty to supervise an employee, and the employer

negligently fails in that duty, then the employer may be liable for the ensuing damage

regardless of whether the employee’s tortious conduct is negligent, reckless, or intentional.

i TRUMP, Justice:

The United States District Court for the Northern District of West Virginia

(“district court”) certified the following questions to this Court:

(1) Is a claim for negligent supervision against an employer viable under West Virginia common law[?]

(2) If yes, what are the elements of the claim?

(3) Can intentional or reckless torts committed by an employee form the basis for a claim for negligent supervision against the employer?

Upon careful review of the parties’ briefs and oral arguments, relevant

portions of the appendix record, and the applicable law, and for the reasons set forth below,

we answer the certified questions as follows and return this matter to the district court for

such further proceedings as that court may deem appropriate.

(1) Is a claim for negligent supervision against an employer viable under West Virginia common law?

Answer: Yes.

Answer: A claim for negligent supervision in West Virginia requires proof of the traditional elements of negligence – duty, breach, causation, and damages – supplemented by the additional necessity of demonstrating a tortious act or omission by the employee whose conduct forms the basis of the claim.

(3) Can intentional or reckless torts committed by an employee form the basis for a claim for negligent supervision against the employer?

1 I. FACTUAL AND PROCEDURAL HISTORY

As set forth in the district court’s order of certification, there are three civil

actions relevant to this case: (1) the initial qui tam action;1 (2) the civil action in the

Northern District of West Virginia (Civil Action No. 5:21-CV-25), referred to herein as

Marietta I, that followed the voluntary dismissal of the qui tam action; and (3) the instant

civil action in the Northern District of West Virginia styled Marietta Area Healthcare, Inc.,

et al. v. Camden-Clark Memorial Hospital Corporation, et al. (Civil Action No. 5:23-CV-

131), referred to herein as Marietta II. As the action relevant to the certified questions

presented is Marietta II, we summarize those facts as set forth in the district court’s

certification order and reference any other pertinent aspect of the other two actions.

Marietta I was an action filed by respondents herein, Marietta Area

Healthcare, Inc., Marietta Memorial Hospital, and Marietta Healthcare Physicians, Inc.

(collectively “Marietta”) against Michael A. King, Dr. Michael D. Roberts, and later Todd

Kruger, alleging malicious prosecution, tortious interference with business relationships

and expectancies, abuse of process, and fraudulent legal process, claims arising out of the

qui tam action initiated by King and Roberts against Marietta.2 While Marietta I was still

1 “A qui tam action is one in which a private plaintiff sues on behalf of the government under a statute that awards part of any penalty recovered to the plaintiff and the remainder to the government.” Hays v. Hoffman, 325 F.3d 982, 986 n.1 (8th Cir. 2003). 2 In Marietta I, Michael A. King, a former chief executive officer of Camden- Clark Memorial Hospital Corp. and/or Camden-Clark Health Services, Inc.; Dr. Michael D. Roberts, an area physician who was employed by and/or rendered professional services at Camden-Clark; and Todd Kruger, Camden-Clark’s vice president and general counsel, 2 pending, Marietta filed the action giving rise to the certified questions now before this

Court (Marietta II).3 The pleadings in Marietta II allege that Camden-Clark Memorial

Hospital Corporation, Camden-Clark Health Services, Inc., West Virginia University

Hospitals, Inc., and West Virginia United Health System, Inc. (hereinafter collectively

“petitioners” or “Camden-Clark”) attempted to disadvantage Marietta economically by

causing its agents and employees (i.e., King, Roberts, and Kruger) to initiate and pursue an

allegedly spurious qui tam action against Marietta. Marietta seeks recovery based on

petitioners’ alleged role(s) in the pursuit and abuse of the allegedly fraudulent qui tam

action. Relevant to the instant case, Marietta alleges that the actions complained of in

Marietta I were undertaken with the knowledge and approval of Camden-Clark.

initiated and pursued a qui tam action against Marietta in federal court. The qui tam complaint alleged, inter alia, that Marietta engaged in continuing violations of the federal False Claims Act, 31 U.S.C. § 3729, by seeking and receiving healthcare reimbursements from federal healthcare programs in contravention of the Stark Laws, 42 U.S.C. § 1395n

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Camden-Clark Memorial Hospital, Inc. v. Marietta Area Healthcare, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/camden-clark-memorial-hospital-inc-v-marietta-area-healthcare-inc-wva-2025.