Crestview Hospital Corp. v. Coastal Anesthesia, P.A.

203 So. 3d 978, 2016 Fla. App. LEXIS 16648
CourtDistrict Court of Appeal of Florida
DecidedNovember 9, 2016
DocketNo. 1D15-4392
StatusPublished
Cited by2 cases

This text of 203 So. 3d 978 (Crestview Hospital Corp. v. Coastal Anesthesia, P.A.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crestview Hospital Corp. v. Coastal Anesthesia, P.A., 203 So. 3d 978, 2016 Fla. App. LEXIS 16648 (Fla. Ct. App. 2016).

Opinion

OSTERHAUS, J.

In 2011, the chief executive officer of North Okaloosa Medical Center (NOMC) complained to the hospital’s anesthesia contractor about one of its anesthesiologists. He reported that the doctor was behaving disruptively and the hospital no longer wanted him assigned there. The contractor acted on this complaint and removed the doctor. After being forced to resign, the doctor sued the CEO and the hospital for defamation. After a trial, the jury found the hospital defendants liable for defamation and awarded the doctor compensatory and punitive damages.

The hospital defendants now raise several issues on appeal, one of which requires reversal. The court incorrectly instructed the jury on defamation. To prove defamation in a case like this one, the hospital’s statement to the contractor about its doctor must have been made with “express malice,” which means for the primary purpose of gratifying its ill-will, hostility, and desire to harm the doctor. But the instructions permitted the jury to infer liability on the basis of whether the defendants knew their statement about the doctor was false or made the statement with reckless disregard for the doctor’s rights, irrespective of the defendants’ primary motive. This was an error. See Nodar v. Galbreath, 462 So.2d 803 (Fla.1984); John Hancock Mut. Life Ins. Co. v. Zalay, 581 So.2d 178 (Fla. 2d DCA 1991). And we cannot regard it as a harmless error because the verdict included a special finding that the hospital’s conduct was motivated “solely by unreasonable financial gain” (emphasis added). In other words, the jury did not view malevolence as the primary motive behind the hospital’s conduct as necessary to find it liable for defamation. And so, the error cannot be considered harmless because the jury instruction error appears to have contributed to the jury’s verdict.

I.

In 2008, NOMC contracted with Anesthesia Healthcare Partners of Florida Inc. (AHP) to provide anesthesia services at the hospital. AHP, in turn, contracted with doctors to work at NOMC, including with board certified anesthesiologist Dr. Michael P. Ederer, through his company Coastal Anesthesia, P.A. Dr. Ederer served as an anesthesiologist at NOMC until AHP removed him in 2011.

AHP terminated Dr. Ederer after hospital CEO David Fuller reported complaints about Dr. Ederer cursing at nurses and hospital staff and unnecessarily delaying the surgery of an elderly patient. Mr. Fuller considered Dr. Ederer’s behavior disruptive and no longer wanted him providing anesthesia services at the hospital. Prior to reporting the matter to AHP, the hospital did not investigate the complaints or initiate a discipline process of its own against Dr. Ederer under the hospital’s bylaws or code of conduct. Instead, the hospital merely complained to AHP, which set about terminating Dr. Ederer under a provision of its contract with him addressing hospital requests for removal “due to patient care concerns or disruptive behavior.” AHP ultimately allowed Dr. Ederer to resign in lieu of termination. Meanwhile, although the hospital defendants did not want Dr. Ederer to continue providing its anesthesia services, they did allow him to keep his hospital privileges for the purpose of continuing to provide pain management sendees to his own patients.

A few months after being forced to resign, Dr. Ederer filed suit claiming tor-tious interference with contract, tortious interference with an advantageous business relationship, and defamation. By the time of the trial, only the defamation claim [981]*981remained against Mr. Fuller and NOMC (the Hospital Defendants). At trial, Dr. Ederer asserted that Mr. Fuller’s statements to AHP and the reports underlying them were uninvestigated by the hospital and false. He argued that the Hospital Defendants’ decision to single him out, after failing to investigate the complaints against him and skipping the disciplinary process established by their bylaws, proved the Hospital Defendants’ intention to maliciously defame him. And he alleged that the Hospital Defendants ruined his career by baselessly labelling him “disruptive,” which is akin to making him wear a scarlet letter in his profession. The Hospital Defendants vigorously contested the allegations, but the jury returned a verdict for Dr. Ederer. It awarded him $1,120,000 in compensatory damages and $1,025,000 in punitive damages. The Hospital Defendants then appealed.

II.

The Hospital Defendants raised four issues in on appeal. Two of them relate to the sufficiency of evidence underpinning the verdict. Another seeks remittitur of the damages. This opinion will only address a fourth issue involving an erroneous jury instruction, which is the basis of our decision to reverse.

A.

Generally speaking, someone who broadcasts a false statement that harms another person’s reputation can be held liable for defamation. The law essentially presumes malevolence on the part of a speaker who says false and harmful things about another person. But that presumption doesn’t apply where parties have a mutual interest in evaluating a person’s work. Of course, evaluative discussions are commonplace. Employees evaluate employers and vice versa; customers evaluate salespeople to store managers; parents evaluate teachers to principals; former bosses evaluate former workers to potential new employers; and so on. This case involves such a conversation. Here, the hospital’s CEO evaluated a doctor’s work and behavior to the contractor that supplied his services to the hospital. Under these circumstances, the law extends a conditional privilege to the speaker and presumes good faith, even when the comments are critical. See, e.g., Zalay, 581 So.2d at 179 (recognizing a privilege in “communications made for bona fide commercial purposes where the interest to be protected is ... business matters where both parties have a corresponding interest in the matter”); Nodar, 462 So.2d at 811 (describing the privilege).

Someone who claims defamation arising from a privileged conversation must prove “express malice” on the part of the speaker. Id. at 810; see also McCurdy v. Collis, 508 So.2d 380, 382 (Fla. 1st DCA 1987). The question of express malice largely turns on whether the speaker intended to harm the plaintiff personally. The Florida Supreme Court described how express malice is proven as follows:

Where a person speaks upon a privileged occasion, but the speaker is motivated more by a desire to harm the person defamed than by a purpose to protect the personal or social interest giving rise to the privilege, then it can be said that there was express malice and the privilege is destroyed. Strong, angry, or intemperate words do not alone show express malice; rather, there must be a showing that the speaker used his privileged position “to gratify his malevolence.”

Nodar, 462 So.2d at 811. See also Zalay, 581 So.2d at 180 (“When the motivation to harm the plaintiff is the purpose of the communication, instead of a desire to pro[982]*982tect a proper interest, then express malice is proven and the privilege is destroyed.”). The mere fact that a 'statement is untrue and made with knowledge of its falsity, or made recklessly without regard to its truth or falsity-is not the test. Zalay, 581 So.2d at 180 (citing Nodar). See also Loeb v. Geronemus, 66 So.2d 241, 244 (Fla.1953) (stating that “the malice which vitiates a qualified privilege must be ... not merely inferred from falsity, etc.”); Demby v. English,

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

Related

Regions Bank v. Marvin I. Kaplan
Eleventh Circuit, 2021
Crestview Hospital Corp. v. Coastal Anesthesia, P.A.
208 So. 3d 854 (District Court of Appeal of Florida, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
203 So. 3d 978, 2016 Fla. App. LEXIS 16648, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crestview-hospital-corp-v-coastal-anesthesia-pa-fladistctapp-2016.