Conner v. Lavaca Hospital District

267 F.3d 426, 2001 WL 1060663
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 4, 2001
Docket00-40526
StatusPublished
Cited by31 cases

This text of 267 F.3d 426 (Conner v. Lavaca Hospital District) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Conner v. Lavaca Hospital District, 267 F.3d 426, 2001 WL 1060663 (5th Cir. 2001).

Opinion

EMILIO M. GARZA, Circuit Judge:

Barbara Conner, M.D. and Harvey Ren-ger, Jr., M.D. (collectively “the Doctors”) appeal the district court’s partial grant of summary judgment to the Lavaca Hospital District, its board of directors, and its medical director (collectively “the Defendants”). We affirm.

I

From 1992 through part of 1997, the Doctors, both practitioners of family medicine, worked at the Lavaca Family Health Clinic (“the Clinic”), a rural health clinic operated by the Lavaca Hospital District (“the District”). Pursuant to written contracts, the Doctors provided services to the Clinic and leased the use of the facilities of the Clinic and the District’s hospital, the Lavaca Medical Center (“the Hospital”). Dr. Conner’s contracts were for one-year terms. Both her 1993 and 1994 contracts guaranteed a monthly salary plus a fixed amount for each clinic patient she treated. In 1995, Dr. Conner entered into another agreement with the District under which she received a monthly salary plus 30 percent of the gross charges from her patients at the clinic and the hospital that were generated in excess of her monthly salary.

As the expiration of her 1995 contract approached, Dr. Conner entered into negotiations with the District for a new contract. Around that same time, the Internal Revenue Service notified Dr. Conner that she had dramatically understated her income. After discussing this problem with the Hospital, she concluded that the method of billing employed under her current contract would continue to cause the understatement of her income and that it would be necessary for her new contract to separate clinic funds from hospital funds. After the expiration of her contract, Dr. Conner entered into a series of three-month stop-gap contracts, the last of which expired June 30, 1996. From the time of the expiration of her last stop-gap contract, Dr. Conner worked for the District without a contract, continuing to negotiate for a new contract.

Dr. Renger entered into two-year contracts with the District. Dr. Renger’s 1992 and 1994 contracts, like Dr. Conner’s contracts, provided a monthly salary. Under these contracts, Dr. Renger received 30 percent of the gross charges that exceeded his base salary. Dr. Renger’s contracts also included a provision for a three-day workweek. Dr. Renger’s health problems necessitated this limited work schedule. Dr. Renger’s 1994 contract was to expire at the end of 1996, and he too entered into negotiations with the District as that expiration approached.

After attempts to negotiate a new contract, the Doctors appeared at an October 21, 1996 meeting of the District’s Board of Directors (“the Board”). The meeting’s agenda slated the Board to “receive information from Dr. Renger and Dr. Conner on Rural Health Clinic Physician contracts” and have “consultation with the Hospital District Attorney on Rural Health Clinic Physician Agreements.” With all of its members present, the Board *431 voted unanimously to adopt the following motion 1 :

to enter into a new agreement for Dr. Harvey Renger with a monthly compensation of $10,750.00 per month, eighteen (18) days vacation, 3-year term; the attorneys, administrator and representative of the doctor would get together with regard to the 30% additional for gross charges, what does that include, how can we legally do that, and come back to the board and the doctors for approval on that issue and the same with regard to the medical directorship position that again would be something that would be worked out preferably by the 5 doctors involved; and that Dr. Barbara Conner’s agreement would be $10,750 per month, eighteen (18) days vacation, 3-year term retroactive to July 1, 1996; the attorneys, administrator and representatives of the doctor would get together with regard to the 30% additional for gross charges, what does that include, how can we legally do that, and come back to the Board and the doctors for approval on that issue and the same with regard to the medical directorship position that again would be something that would be worked out preferably by the 5 doctors involved.

The Board subsequently approved the minutes reflecting this motion on November 18, and both the Board’s secretary and president signed the minutes.

Two days after the October 21 meeting, the Board’s Executive Committee met to discuss some of its members’ apprehensions about the October 21 motion. The Executive Committee decided to hold an emergency Board meeting that evening, October 23, 1996. At that emergency meeting, the Board voted to rescind the October 21 motion. Despite the motion’s rescission, the Doctors continued to provide services to the Clinic until April 1997. During that time, the District made other offers to the Doctors containing less lucrative terms than those contained in the October 21 motion; the parties were unable to reach an agreement.

Subsequently, the Doctors filed suit against the Defendants, alleging various federal and state law claims. They filed for partial summary judgment on a numr ber of their claims including breach of contract, anticipatory repudiation, and the Hospital’s statute of frauds affirmative defense. 2 The Defendants also filed a motion for summary judgment. The district court concluded that the October 21 motion did not satisfy the statute of frauds because: (1) the motion expressed merely an offer because it failed to show that the Doctors consented to the motion; and (2) it lacked the essential elements of a contract, with one of the terms too indefinite to enforce and two material elements missing altogether from the motion. The district court found that without an enforceable contract the following claims failed: (1) impairment of contract in violation of the Contracts Clause, U.S. Const. Art. I, § 10; (2) anticipatory repudiation and breach of contract; (3) 42 U.S.C. § 1983 claims for violation of the Doctors’ due process rights; and (4) tortious interference with contract. Accordingly, the district court granted summary judgment on these claims.

Pursuant to 28 U.S.C. § 1292(b), the district court certified that its order granting partial summary judgment involved “a controlling question of law as to which there is substantial ground for difference of opinion and that an immediate appeal *432 from the order may materially advance the ultimate termination of the litigation.” A panel of this Court granted leave for interlocutory appeal.

II

We review a district court’s grant of summary judgment de novo, using the same standards as the district court. See McClendon v. City of Columbia, 258 F.3d 432, 435 (5th Cir.2001). We view the evidence in the light most favorable to the party opposing the motion, drawing all reasonable inferences in that party’s favor. See Rios v. Rossotti, 252 F.3d 375, 378 (5th Cir.2001); Auguster v. Vermilion Parish Sch. Bd., 249 F.3d 400, 402 (5th Cir.2001).

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Bluebook (online)
267 F.3d 426, 2001 WL 1060663, Counsel Stack Legal Research, https://law.counselstack.com/opinion/conner-v-lavaca-hospital-district-ca5-2001.