Diaz-Garcia v. Surillo-Ruiz

113 F. Supp. 3d 494, 2015 U.S. Dist. LEXIS 82818, 2015 WL 3866686
District Court, D. Puerto Rico·Decided June 23, 2015·No. Civil No. 13-1473 (FAB)·Published·Cited by 2 cases

Opinion

OPINION & ORDER

BESOSA, District Judge.

Current and former employees of the Diagnosis and Treatment Health Center of Yabucoa (“CDT-Yabucoa”) brought this suit, pursuant to 42 U.S.C. § Í983, against SM Medical Services, CSP (“SM Medical”), the president of SM Medical, Victor Simmons (“Simmons”), the director of SM Medical, Ricardo Rivera-Garcia (“Rivera”) (collectively, the “SM Medical, defendants”), the Municipality of Yabucoa (the “Municipality”)) the mayor of Yabucoa, Rafael Surillo-Ruiz (“Mayor Surillo”); and the Municipality’s liaison officer,' Lydia Cruz (“Officer Cruz”) (collectively, the “Municipal defendants”), alleging political discrimination in violation of the First and Fourteenth Amendments to the United States Constitution as well as the laws of Puerto Rico. (Docket Nos. 1, 44.)

Currently before, the Court are' defendants’ motions' for summary judgment, (Docket Nos. 131, 135), which plaintiffs opposed, (Docket No. 155). For the reasons discussed below, the Court GRANTS in part and DENIES in part the SM Medical defendants’ motion for summary judgment, (Docket No. 131), and GRANTS in part and DENIES in part the Municipal defendants’ motion for summary judgment, (Docket No. 135).

SUMMARY JUDGMENT STANDARD

A court will grant summary judgment' if the moving party shows, based on the materials in the record, “that there is no genuine dispute as to any material fact and [she] is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a). A fact is “material” if it potentially affects the outcome of the case. Calero-Cerezo v. U.S. Dep’t of Justice, 355 F.3d 6, 19 (1st Cir.2004). A factual- dispute is “genuine” if its resolution could favor either party at trial. Id.

If the moving party shows the absence of a genuine issue as to any outcome-determinative fact, the nonmoving party must “demonstrate, through submissions of‘evidentiary quality, that a trialworthy issue persists” to forestall the entry of summary judgment. DePoutot v. Raffaelly, 424 F.3d 112, 117 (1st Cir.2005). Conclusory allegations, improbáble inferences, and rank speculation are insufficient to discharge the nonmovant’s burden. Id.

At the summary judgment stage, a court must construe the entire record in a light most hospitable to the nonmoving party and draw all reasonable inferences in her favor. Id. What is more, the reviewing court refrains from making credibility determinations, weighing the evidence, and drawing legitimate inferences from the facts, because those tasks are properly left to the jury. See Hicks v. Johnson, 755 F.3d 738, 743 (1st Cir.2014); cf. Calero-Cerezo, 355 F.3d at 19 (“So long as the plaintiff’s evidence is both cognizable and sufficiently strong to support a verdict in her favor, the factfinder must be allowed [500]*500to determine which version of the facts is most compelling.”).

BACKGROUND

Viewing the evidence in a light most favorable to plaintiffs, as the nonmoving party, and drawing all reasonable inferences in their favor, the factual background is as follows:

The CDT-Yabucoa

Puerto Rico law creates government-owned health care centers — “centros de diagnostico y tratamiento de salud” (“CDTs”) — designed to provide services to indigent persons. See Docket No. 44 at pp. 23-24 & n. 3. The relevant statute directs Puerto Rico’s Secretary of Health to enter into agreements with municipalities to effectuate the administration and operation of those health care centers. See id. Pursuant to this statute, the Municipality of Yabucoa1 entered into an agreement with the Puerto Rico Department of Health (the “PRDOH”) by which the Municipality assumed responsibility for the administration and control of its local CDT. Id. at ¶21. With this agreement, the Municipality became the nominating authority at the CDT-Yabucoa. Id. at ¶ 22. The CDT-Yabucoa’s employees were considered municipal employees. Id.

The SM Medical Contract

On February 3, 2011, the Municipality entered into a five-year contract with SM Medical, a private corporation registered and organized under the laws of Puerto Rico, to assist with fulfilling its obligations to the PRDOH. Docket No. 44 at ¶¶ 24-25; see also Docket No. 160-1 at p. 1. Pursuant to the contract, SM Medical agreed to assume the responsibility of, at a minimum, the following services:

(A) The full operation of the CDT that includes, among others: Laboratory; X-Rays; Pharmacy; specialist clinics such as Pediatrics, Cardiology, Gynecology and other agreed by the Municipality and SM Medical; and
(B) Emergency Room — 24hrs/7days a week services.

(Docket No. 160-1 at p. 2.) SM Medical further committed to “improving] and maximizing]” these services, “developing] and implementing] new services [and] programs,” and “maintaining] a quality of services in accordance to the public health standard for good practice.” Id. SM Medical is required to “provide periodic reports to the Municipality of the functioning and operation of the [emergency room] facilities.” Id. at p. 3.

For its services, the Municipality agreed to pay SM Medical $95,833.33 per month for the first seventeen months of the contract’s five-year term, and $83,333.332 per month thereafter. (Docket No. 160-1 at p. 7.) The contract also provided for profit-sharing with respect to certain earnings from SM Medical’s operation of the facilities. See Docket No. 44 at ¶ 27.

Upon execution of the contract, SM Medical assumed the CDT-Yabucoa’s personnel, employees,3 and professional service contracts. (Docket No. 160-1 at p. 5.) Employees hired to work at the CDT-Yabucoa after the contract’s execution would not be considered “municipal em[501]*501ployees” unless: (1) the Municipality recruited them directly; and (2) the municipal budget covered their salary. Id.'For its general hiring, SM Medical agreed to consult with the Municipality regarding the selection of personnel. Id. at p; 9. The contract calls for the creation of a municipal officer position, a “municipal liaison,” to be appointed by .the .. mayor, (Docket No. 160-1 at p. 5.) As the title suggests, the municipal liaison is “the liaison between the Municipality and SM Medical,” as well as “the advisor who governs on administrative, matters in. [the contract].” Id. The municipal liaison-is specifically responsible for evaluating SM Medical’s requests, and making corresponding recommendations to the mayor. Id. The municipal liaison is to be- considered a municipal officer. Id. . . ' .

According to the contract,’ SM Medical’s relationship to the Municipality is that of an “independent contractor,” and “[n]oth-ing contained in th[e] agreement will constitute or be interpreted as [creating] a partnership, joint venture, or lease” between the Municipality and SM Medical. (Docket No. 160-1 at p. 7.)

The contract was . signed by Angel “Papo” Garcia-de Jesus (“Garcia”), the mayor of Yabucoa at the time, .on behalf of the Municipality, and,Simmons, SM Medical’s president, on- behalf of SM Medical.See Docket No. 160-1 at p. 1.0.

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Diaz-Garcia v. Surillo-Ruiz, 113 F. Supp. 3d 494, 2015 U.S. Dist. LEXIS 82818, 2015 WL 3866686 (prd 2015).

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