Fletcher v. Eagle River Memorial Hospital, Inc.

456 N.W.2d 788, 156 Wis. 2d 165, 1990 Wisc. LEXIS 272
CourtWisconsin Supreme Court
DecidedJune 26, 1990
Docket88-1111
StatusPublished
Cited by40 cases

This text of 456 N.W.2d 788 (Fletcher v. Eagle River Memorial Hospital, Inc.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fletcher v. Eagle River Memorial Hospital, Inc., 456 N.W.2d 788, 156 Wis. 2d 165, 1990 Wisc. LEXIS 272 (Wis. 1990).

Opinion

HEFFERNAN, CHIEF JUSTICE.

This is a review of a published court of appeals decision 1 which affirmed a judgment of the circuit court for Vilas county, James W. Karch, Circuit Judge for Florence and Forest counties, presiding, that concluded that Dr. Fred W. Fletcher could recover, under the aegis of 42 U.S.C. sec. 1983 2 one dollar in compensatory damages and $50,000 in punitive damages for the deprivation of a property right, a consultative staff position at the Eagle River Memorial Hospital, without first being accorded appropriate procedural due-process protections.

*168 We reverse under our discretionary authority set forth in sec. 751.06, Stats., 3 on the ground that the real controversy has not been fully tried, and remand to the Vilas county circuit court for a new trial.

We conclude that the real controversy has not been tried, because the trial court relied upon "concessions" made by the defendant hospital to furnish the basis for concluding that the conduct of Eagle River Memorial Hospital was conduct under the "color" of state law. Both the trial court and the court of appeals erred, because a judicial admission or concession can help sustain the burden of one party or the other only when the admission is evidentiary and relating to a relevant fact. Here the concession was in respect to a matter of law which is binding upon neither the parties nor upon any court. Because the concession and its acceptance by the court led to the conclusion that questions of "state action" and under "color" of state law were not in issue, it appears to us that this crucial issue — whether the conduct of the hospital was state action conferring jurisdiction under 42 U.S.C. sec. 1983 — was never addressed at trial.

The facts are these. Dr. Fred Fletcher was a board-certified cardiologist. In 1975, he was granted full staff *169 privileges at Eagle River Memorial Hospital for consulting and admitting in cardiology and internal medicine. His staff privileges were renewed until 1984. In 1982, he was named the hospital's chief of staff.

In July of 1983, he requested a one-year leave of absence to take an educational sabbatical in Saudi Arabia. He was informed in September 1983 by letter signed by the then administrator of the hospital, Charles E. Reevs, that the requested leave of absence had been approved by the hospital's board of directors. Dr. Fletcher arranged for a Wausau cardiologist to "cover" his patients during the leave period. That physician understood that the agreement was to continue only until Fletcher's return. Fletcher agreed to turn over his patient records for access by the covering physician. Fletcher understood that he would be able to resume staff privileges after his return from Saudi Arabia at the end of the year. During Fletcher's absence, Hospital Administrator Reevs retired and was replaced by Jerome Burdick.

Dr. Fletcher's staff privileges, from which he had taken a leave of absence, expired on October 1,1984. He did not return to Eagle River until October of 1984. Upon requesting reactivation of his staff privileges on October 20, 1984, Dr. Fletcher was told by the new administrator that the leave was in violation of the hospital's bylaws, that his appointment had expired, and that he would have to apply for staff privileges as an initial applicant. He applied for staff privileges on January 27, 1985. The medical staff and the credentials committee approved the application. Despite the unanimous approval of the application by the medical staff, at Bur-dick's direction the application was sent to the governing board, which rejected the application by a six-to-one vote, concluding that there was no "need" for *170 another cardiologist or internal medicine physician on the staff. 4 Dr. Fletcher was not told of the rejection until his attorney asked for that information. His request for a hearing was not granted. Dr. Fletcher succeeded in getting other employment as a medical administrator in Madison.

On November 12, 1985, Dr. Fletcher commenced an action against the hospital to enjoin the nonrenewal of his staff privileges, to recover damages for loss of profits, and damages for the denial of property rights, i.e., the denial of staff rights without a hearing, which he alleged was required by constitutional due process of law.

Consistent with its interpretation of the hospital rules and bylaws, the hospital denied that Dr. Fletcher had ever been on leave and alleged that Eagle River Memorial Hospital was a private hospital, whose application procedures and staffing decisions were not subject to judicial review or subject to due-process requirements under Johnson v. City of Ripon, 259 Wis. 84, 86, 47 N.W.2d 328 (1951).

There is no specific reference in either the complaint or the answer that the action was brought under 42 U.S.C. sec. 1983.

Eagle River Memorial Hospital moved for summary judgment, asserting that no facts had been stated upon which relief could be granted, because Eagle River *171 Memorial Hospital was a private hospital, whose staffing decisions were not subject to judicial review. Additionally, defendant hospital stated that no facts were at issue or which showed that the decision of Eagle River Memorial Hospital was arbitrary or capricious. Despite vigorous argument that Eagle River Memorial Hospital was a private hospital, the trial court did not address this question on summary judgment, but did conclude in its order and opinion that there were factual matters that needed resolution and that the complaint prima facie stated a claim on which relief can be granted.

Interestingly enough, the subsequent statements or admissions by the defendant that the hospital is acknowledged to be quasi-public and, therefore, its action was state action purports to be founded on the court's summary judgment decision to that effect. No decision to that effect was made on summary judgment. The most that can be said is the court permitted the action to proceed. The court in its order denying summary judgment was silent about the hospital being quasi-public. Summary judgment was denied only because there were issues of fact. 5

The case then went to trial before the court. In making its decision after two days of trial, the circuit court did not rely upon any evidence that was produced at trial in finding that the hospital had acted under color of state law in violation of 42 U.S.C. sec. 1983. Instead, in the opinion at the close of the trial, it relied wholly upon statements in defendant's briefs filed in the course of trial. The judge stated:

The defendant is a quasi-public institution whose action is viewed as governmental action for *172 due process purposes.

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

Related

Keith M. Kuzelka Trust v. Dora E. Kuzelka
Court of Appeals of Wisconsin, 2023
Alex Molinaroli v. Stacy J. Miller
Court of Appeals of Wisconsin, 2021
Chris Hinrichs v. DOW Chemical Company
2020 WI 2 (Wisconsin Supreme Court, 2020)
Ronald Magnin v. Magnin Whole Corporation
Court of Appeals of Wisconsin, 2019
Hanshew v. Watkins
Court of Appeals of Kansas, 2016
Bostco LLC v. Milwaukee Metropolitan Sewerage District
2011 WI App 76 (Court of Appeals of Wisconsin, 2011)
State v. Matthews
2011 WI App 92 (Court of Appeals of Wisconsin, 2011)
Commerce Bluff One Condominium Ass'n v. Dixon
2011 WI App 46 (Court of Appeals of Wisconsin, 2011)
Bray v. Gateway Insurance
2010 WI App 22 (Court of Appeals of Wisconsin, 2009)
Olson v. Darlington Mutual Insurance
2009 WI App 122 (Court of Appeals of Wisconsin, 2009)
Miller v. Brannon
207 P.3d 923 (Colorado Court of Appeals, 2009)
E-L Enterprises, Inc. v. Milwaukee Metropolitan Sewerage District
2009 WI App 15 (Court of Appeals of Wisconsin, 2008)
State v. Annina
2006 WI App 202 (Court of Appeals of Wisconsin, 2006)
Travelers Indemnity Co. of Illinois v. Staff Right, Inc.
2006 WI App 59 (Court of Appeals of Wisconsin, 2006)
Brew City Redevelopment Group, LLC v. Ferchill Group
2006 WI App 39 (Court of Appeals of Wisconsin, 2006)
State v. Michael S.
2005 WI 82 (Wisconsin Supreme Court, 2005)
State v. Greenstreet
875 A.2d 177 (Court of Special Appeals of Maryland, 2005)
Diamondback Funding, LLC v. Chili's of Wisconsin, Inc.
2004 WI App 161 (Court of Appeals of Wisconsin, 2004)
Lynch v. Crossroads Counseling Center, Inc.
2004 WI App 114 (Court of Appeals of Wisconsin, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
456 N.W.2d 788, 156 Wis. 2d 165, 1990 Wisc. LEXIS 272, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fletcher-v-eagle-river-memorial-hospital-inc-wis-1990.