Dema v. TENET PHYSICIAN SERVICES-HILTON

678 S.E.2d 430, 383 S.C. 115
CourtSupreme Court of South Carolina
DecidedJune 8, 2009
Docket26663
StatusPublished

This text of 678 S.E.2d 430 (Dema v. TENET PHYSICIAN SERVICES-HILTON) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dema v. TENET PHYSICIAN SERVICES-HILTON, 678 S.E.2d 430, 383 S.C. 115 (S.C. 2009).

Opinion

383 S.C. 115 (2009)
678 S.E.2d 430

Robert J. DEMA, Edward M. Finn, and Joyce E. Gadson, on behalf of themselves and all others similarly situated, Appellants,
v.
TENET PHYSICIAN SERVICES-HILTON HEAD, INC. and Amisub (Hilton Head), Inc., collectively d/b/a Hilton Head Regional Medical Center, Respondents.

No. 26663.

Supreme Court of South Carolina.

Heard March 18, 2009.
Decided June 8, 2009.

*118 A. Hoyt Rowell, T. Christopher Tuck, Michael J. Brickman, all of Richardson, Patrick, Westbrook & Brickman, of Mt. Pleasant, Daniel S. Haltiwanger, of Richardson, Patrick, Westbrook & Brickman, of Barnwell, Mark C. Tanenbaum and John P. Algar, both of Charleston, for Appellants.

E. Douglas Pratt-Thomas, of Pratt-Thomas & Walker, of Charleston, William H. Jordan and Samuel R. Rutherford, both of Alston & Bird, of Atlanta, for Respondents.

Chief Justice TOAL:

Appellants filed suit against Respondents asserting several causes of action stemming from Hilton Head Regional Medical Center's (HHRMC) administration of hundreds of unauthorized therapeutic cardiac catheterizations. The trial court dismissed Appellants' complaint in its entirety. We affirm.

*119 FACTUAL/PROCEDURAL BACKGROUND

Between 1997 and 2000, HHRMC[1] performed over 200 unauthorized therapeutic cardiac catheterizations (TCCs) in violation of State Certification of Need and Health Facility Licensure Act (CON Act), S.C.Code Ann. § 44-7-110, et seq. (Supp.2008). The Department of Health and Environmental Control (DHEC) issued a fine of $100 for each unauthorized procedure for a total of $24,200.

In February 2006, Appellants filed their complaint alleging that they received unauthorized TCCs at HHRMC in 1998 or 1999. Appellants asserted claims for violations of South Carolina Unfair Trade Practices Act (SCUTPA), S.C.Code Ann. § 39-5-10, et seq. (Supp.2008) violations, unjust enrichment, battery, and outrage. The complaint also referenced a federal qui tam complaint filed against HHRMC by Dr. Lowman, a doctor formerly employed with Respondents, alleging that HHRMC fraudulently billed Medicare as a result of performing the unauthorized TCCs. Respondents removed the complaint to federal court pursuant to federal question jurisdiction based on the reference to the Lowman complaint, but the district court remanded the case to state court.

Respondents filed a motion to dismiss, and following a hearing, the trial court dismissed the complaint in its entirety. The trial court found that it lacked subject matter jurisdiction over the case since DHEC was the sole agency empowered with authority to resolve claims regarding violations of the CON Act. The trial court further ruled that even if it had jurisdiction, Appellants could not maintain an unjust enrichment or SCUTPA claim because a private right of action did not exist for violations of the CON Act. The trial court dismissed the SCUTPA claims on the additional grounds that the claims fell under the regulatory exception, the allegations were not capable of repetition, and SCUTPA prohibits class action suits.[2]

*120 We certified the case pursuant to Rule 204(b), SCACR, and Appellants present the following issues[3] for review:

I. Did the trial court err in ruling that it did not have subject matter jurisdiction over the case?
II. Did the trial court err in ruling that the CON Act did not create a private cause of action?
III. Did the trial court err in dismissing the SCUTPA claims?
IV. Did the trial court err in dismissing Appellant's unjust enrichment claim?

STANDARD OF REVIEW

Generally, in considering a motion to dismiss, the trial court must base its ruling solely upon the allegations set forth on the face of the complaint. Doe v. Greenville County Sch. Dist., 375 S.C. 63, 66-67, 651 S.E.2d 305, 307 (2007). The motion may not be sustained if the facts alleged in the complaint and the inferences that can be drawn therefrom would entitle the plaintiff to relief under any theory. Id.

LAW/ANALYSIS

I. Subject Matter Jurisdiction

Appellants argue that the trial court erred in ruling that it did not have subject matter jurisdiction to hear the case. We agree.

Subject matter jurisdiction is the power to hear and determine cases of the general class to which the proceedings in question belong. Skinner v. Westinghouse Elec. Corp., 380 S.C. 91, 93, 668 S.E.2d 795, 796 (2008). South Carolina trial courts are vested with general original jurisdiction in civil and criminal cases, except those cases in which exclusive jurisdiction shall be given to inferior courts. S.C. Const. art. V, *121 § 11. In determining whether the Legislature has given another entity exclusive jurisdiction over a case, a court must look to the relevant statute. See Unisys Corp. v. South Carolina Budget and Control Bd. Div. of Gen. Servs. Info. Mgmt. Office, 346 S.C. 158, 175, 551 S.E.2d 263, 273 (2001) (examining the language of the statute to determine the legislative intent regarding exclusive jurisdiction).

We hold that the trial court erred in ruling it did not have subject matter jurisdiction over this case. Appellants did not file suit seeking a determination from the trial court that HHRMC was acting in violation of the CON Act. Rather, Appellants' suit involved civil claims arising out HHRMC's violations of the CON Act, which DHEC had already determined HHRMC had committed. While DHEC has exclusive subject matter jurisdiction to determine whether a violation has occurred,[4] it does not have subject matter jurisdiction to hear civil claims for damages resulting from those violations.[5] Therefore, we hold that the trial court's ruling was erroneous.

II. Private Cause of Action

Appellants argue that the trial court erred in ruling that the CON Act did not create a private cause of action. We disagree.

Where not expressly provided, a private right of action may be created by implication if the legislation was enacted for the special benefit of the private party. Citizens for Lee County, Inc. v. Lee County, 308 S.C. 23, 28, 416 S.E.2d 641, 645 (1992). If the overall purpose of the statute is to aid society and the public in general, the statute is not enacted for the special benefit of a private party. Adkins v. South *122 Carolina Dept. of Corr., 360 S.C. 413, 419, 602 S.E.2d 51, 54 (2004).

We hold that no private right of action may be implied from the CON Act. The purpose of the Act is:

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Dema v. Tenet Physician Services-Hilton Head, Inc.
678 S.E.2d 430 (Supreme Court of South Carolina, 2009)

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Bluebook (online)
678 S.E.2d 430, 383 S.C. 115, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dema-v-tenet-physician-services-hilton-sc-2009.