Diaz v. Farley

215 F.3d 1175, 2000 Colo. J. C.A.R. 3960, 2000 U.S. App. LEXIS 14654, 2000 WL 827348
CourtCourt of Appeals for the Tenth Circuit
DecidedJune 27, 2000
Docket98-4136
StatusPublished
Cited by14 cases

This text of 215 F.3d 1175 (Diaz v. Farley) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diaz v. Farley, 215 F.3d 1175, 2000 Colo. J. C.A.R. 3960, 2000 U.S. App. LEXIS 14654, 2000 WL 827348 (10th Cir. 2000).

Opinion

EBEL, Circuit Judge.

Drs. Diaz, Diehl, and Kaminsky (collectively, the “plaintiffs”) are anesthesiologists with privileges at Cottonwood Hospital in Murray, Utah. They brought an antitrust suit against three other anesthesiologists with privileges at Cottonwood, Drs. Farley, Matthews, and Abele (collectively, the “individual defendants”), and against two entities, Cottonwood Obstetrics & Gynecology & Infertility (“Cottonwood Ob/Gyn”) and Old Farm Obstetrics & Gynecology (“Old Farm Ob/Gyn”). The plaintiffs alleged that the individual defendants engaged in a horizontal group boycott that violated Section 1 of the Sherman Act and the Utah Antitrust Act. They further alleged that Cottonwood Ob/ Gyn and Old Farm Ob/Gyn also violated Section 1 of the Sherman Act and the Utah Antitrust Act when they horizontally agreed to honor the boycott engineered by the individual defendants. The plaintiffs also sued all of the defendants for tortious interference with economic relations, and they sued one of the individual defendants, Dr. Abele, for defamation.

*1177 The plaintiffs maintain that the actions of the defendants were per se unlawful under the antitrust laws, and they have conceded that they could not prove their claims if the rule of reason governs the conduct at issue. The district court found that the rule of reason applies to the actions of the defendants; therefore it granted the individual defendants’ motion for summary judgment on the antitrust claims, and dismissed with prejudice the plaintiffs’ antitrust claims against all of the defendants. 1 The district court then dismissed without prejudice the pendant defamation and tortious interference with economic relations claims. The plaintiffs now appeal, and we affirm.

I. BACKGROUND 2

A. Cottonwood Hospital and the Anesthesia Department

Cottonwood Hospital is located in Murray, Utah, just south of Salt Lake City. The hospital is governed pursuant to bylaws recommended by the Cottonwood Hospital medical staff and adopted by the Cottonwood Hospital Board of Trustees. The bylaws establish separate departments within Cottonwood Hospital, including a Department of Anesthesiology. Anesthesiology services at Cottonwood Hospital are provided by the members of the Department of Anesthesiology (“Department”), all of whom are licensed anesthesiologists who practice medicine independently of each other. The anesthesiologists are not considered employees of the hospital. The Department schedules anesthesiologists to cover the operating room (“OR”), the labor and delivery room, and other areas of the hospital. Each area requires a specific number of anesthesiologists each day. Historically, anesthesiologists working in one area have not been regularly scheduled in another area. The OR and labor and delivery divisions have each had a certain number of “slots,” or physicians, who rotate in the schedule. A new physician is usually only added to the rotation in these areas when another physician leaves.

Until November, 1993, two anesthesiologists from the Department were responsible for scheduling anesthesiology services at Cottonwood. In November, 1993, a single anesthesiologist, Dr. Farley, became the monthly scheduler. He was selected as scheduler by a two-thirds majority vote of the voting members of the Department. As the scheduler, Dr. Farley was responsible for ensuring that a sufficient number of anesthesiologists were assigned to cover each area of the hospital at all times. Pri- or to February, 1994, a single department member was assigned to cover each 24-hour labor and delivery shift.

B. Plaintiffs-Appellants

Plaintiff-appellant Dr. Anthony Diaz practiced general anesthesiology at Cottonwood, including obstetric (“ob/gyn”) anesthesiology between 1981 and 1982. He left Cottonwood in 1982 to practice medicine elsewhere and then returned to Cottonwood in 1990. From 1990 to 1992, Dr. Diaz did some “fill in” anesthesiology work on the labor and delivery schedule at the rate of approximately two shifts per *1178 month. In 1993, he requested significant additional labor and delivery shifts.

Plaintiff-appellant Dr. Paul Diehl practiced anesthesia in labor and delivery at Cottonwood between 1981 and 1989. In 1989, Dr. Diehl left the labor and delivery anesthesia practice to work in the OR anesthesia practice. 3 In 1992 and 1993, Dr. Diehl again sought significant work in labor and delivery.

Plaintiff-appellant Dr. Kaminsky practiced anesthesiology in labor and delivery at Cottonwood between 1980 and 1983. In 1983, Dr. Kaminsky gave up his labor and delivery shifts for shifts in the OR division. In 1993, Dr. Kaminsky asked to be included again in the labor and delivery schedule.

Thus, plaintiffs Drs. Diaz, Diehl, and Kaminsky each performed anesthesiology services in the labor and delivery room at Cottonwood Hospital for a period of time in the 1980s; each voluntarily ceased performing such services in the labor and delivery room; and each sought to regain a significant number of shifts on the labor and delivery schedule in 1993.

C. Defendants-Appellees

Defendant-appellee Dr. Michael Farley has been a member of Cottonwood’s Department of Anesthesiology since 1986; defendant-appellee Dr. Morris Matthews has been a member since 1983; and defendant-appellee Dr. Joan Abele was a member from 1983 to 1996. All three individual defendants were part of a five-physician rotation that regularly performed anesthesiology in labor and delivery for several years prior to 1993. Defendants-appellees Cottonwood Ob/Gyn and Old Farm Ob/Gyn are practice groups comprised of gynecologists and obstetricians with privileges to practice at Cottonwood Hospital.

D. Scheduling Dispute

In November, 1993, Dr. Diaz, who was the acting Anesthesia Department Chairman, called a Department meeting to discuss the scheduling of ob/gyn anesthesia. At that time, there was apparently only one open slot in the labor and delivery rotation and Drs. Diaz, Diehl, and Kamin-sky were all seeking increased labor and delivery shifts. The Department members concluded that the plaintiffs would be scheduled for “some” labor and delivery shifts.

In December, 1993, the Department members met again to discuss whether the plaintiffs should be given new “slots” so that everyone would work equally on the labor and delivery schedule, or whether they would be given one slot to share among the three of them. The Department members apparently decided that the ob/gyn anesthesiologists currently filling the “slots” would meet separately to discuss the issue. It is unclear whether that meeting ever took place. The plaintiffs continued to work to some extent in labor and delivery, but there was no definite resolution of the scheduling issue.

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

Related

In re Blue Cross Blue Shield Antitrust Litig.
308 F. Supp. 3d 1241 (N.D. Alabama, 2018)
Suture Express, Inc. v. Cardinal Health 200, LLC
963 F. Supp. 2d 1212 (D. Kansas, 2013)
Cohlmia, Jr. v. St. John Medical Center, Inc.
693 F.3d 1269 (Tenth Circuit, 2012)
Campfield v. State Farm Mutual Automobile Insurance
532 F.3d 1111 (Tenth Circuit, 2008)
Singh v. Memorial Medical Center, Inc.
536 F. Supp. 2d 1244 (D. New Mexico, 2008)
Cohlmia v. Ardent Health Services, LLC
448 F. Supp. 2d 1253 (N.D. Oklahoma, 2006)
Champagne Metals v. Ken-Mac Metals, Inc.
458 F.3d 1073 (Tenth Circuit, 2006)
Gregory v. Fort Bridger Rendezvous Ass'n
448 F.3d 1195 (Tenth Circuit, 2006)
Medical Supply Chain, Inc. v. General Electric Co.
144 F. App'x 708 (Tenth Circuit, 2005)
Pfenninger v. Exempla, Inc.
116 F. Supp. 2d 1184 (D. Colorado, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
215 F.3d 1175, 2000 Colo. J. C.A.R. 3960, 2000 U.S. App. LEXIS 14654, 2000 WL 827348, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diaz-v-farley-ca10-2000.