Franceschi v. Hospital General San Carlos, Inc.

326 F. Supp. 2d 257, 2004 WL 1613561
CourtDistrict Court, D. Puerto Rico
DecidedJuly 16, 2004
DocketCIV. 00-2209PGJA
StatusPublished
Cited by3 cases

This text of 326 F. Supp. 2d 257 (Franceschi v. Hospital General San Carlos, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Franceschi v. Hospital General San Carlos, Inc., 326 F. Supp. 2d 257, 2004 WL 1613561 (prd 2004).

Opinion

OPINION AND ORDER

ARENAS, Chief United States Magistrate Judge.

I. INTRODUCTION

Dr. Porfirio Franceschi (hereinafter “Dr. Franceschi”) and his wife Ángela Castillo (hereinafter “Castillo”) and the conjugal partnership formed by them brought this action for damages against the defendant, Hospital General San Carlos, Inc. (hereinafter “Hospital”). (Docket No. 1.) The Hospital is alleged to have breached the professional services contract entered into with Dr. Franceschi. After a two-day trial, the jury returned a verdict in favor of the plaintiffs and awarded a total of $352,792. (Docket No. 93.) This matter is now before the court on motion for judgment as a matter of law filed by the Hospital pursuant to Rule 50(b) of the Federal Rules of Civil Procedure. (Docket No. 97.) In the alternative, the Hospital moves for a new trial under Federal Rule of Civil Procedure 59 and/or for remittitur. (Docket No. 96.) The plaintiffs filed an opposition to the Hospital’s motions. (Docket No. 100.) After considering the arguments of the parties and for the reasons explained below, the Hospital’s motion for judgment as a matter of law is DENIED. It’s motion for a new trial is also DENIED. Nevertheless, finding that the amount awarded for mental and emotional damages is excessive, I conclude that remittitur is warranted.

II. FACTUAL AND PROCEDURAL BACKGROUND

The testimony presented at trial establishes that Dr. Franceschi, a radiologist, *259 retired from the United States Army after 25 years of service. (Trial Transcript at 4-6.) While in the Army, Dr. Franceschi was assigned to different areas as chief of the x-ray departments. (Id. at 5.) After retiring, he continued to work as a civilian in the same hospital he had worked at prior to retirement. (Id. at 6.) Sometime between July and September of 1993, Dr. Franceschi received a call from Dr. Emilio Rodríguez Méndez (hereinafter “Dr. Rodriguez”), a friend from medical school who also happened to be the director of the Hospital. (Id. at 7.) At that time, they discussed the possibility of Dr. Franceschi relocating to Puerto Rico to work at the Hospital’s radiology department. (Id.)

Initially, Dr. Franceschi expressed that since he was used to receiving a salary, he needed to know how much he was going to get paid. (Id.) Dr. Rodriguez told Dr. Franceschi that although he could not offer a salary, he would propose a better arrangement. (Id.) Dr. Rodriguez indicated that he would guarantee $10,000 a month plus 35% tri-monthly of the net income collected by the Hospital from the services provided by the radiology department. (Id. at 7-8.) Dr. Franceschi in turn stated that he would consider the offer. (Id. at 8.) After receiving several calls from Dr. Rodriguez, Dr. Franceschi decided to accept the offer and come to Puerto Rico. (Tr. at 8.) Since his contract with the hospital in Texas was set to expire in November of that year, he would be able to come to Puerto Rico in December to get the details of the new contract. (Id.)

When asked about what he understood regarding the percentage to which he was entitled, Dr. Franceschi testified that he understood he was entitled to 35% of the remaining income collected by the Hospital after deducting operational expenses. (Id. at 8-9.) With that understanding, Dr. Franceschi met with Hospital executives on December 2 or 3, 1993. (Id. at 10.) Present at the meeting were Dr. Rodriguez, the Hospital’s administrator Marcos Reyes, the Hospital’s attorney and Dora Areizaga (hereinafter “Areizaga”), the Hospital’s manager in charge of finances. (Id.) They handed Dr. Franceschi the papers containing the contract which he reviewed and signed. (Id. at 10.) Dr. Fran-ceschi testified that he found the terms to be reasonable and that he had no questions at that time. (Id. at 10-11.) According to Dr. Franceschi, the terms of the contract reflected his understanding of what Dr. Rodriguez had offered. (Id. at 12.) Nowhere in the contract was it stated that the Hospital would make adjustments to the computation of the income generated by the radiology department. (Id.)

The testimony presented at trial further establishes that when Dr. Franceschi received the first quarter’s check, he was surprised and disappointed. (Id. at 12-13.) Because the amount received was not in accordance with what he had expected, Dr. Franceschi went to discuss his concern with Areizaga, the person in charge of finances. (Id. at 13.) Areizaga did some numbers in the presence of Dr. Franceschi arriving at a number that supposedly reflected the net income of the radiology department. (Id. at 13.) From that number she subtracted 55%. When Dr. Fran-ceschi inquired about the 55% reduction, Areizaga indicated that such was a “contractual adjustment.” (Id.) Dr. Franceschi then claimed that there was nothing in his agreement regarding “contractual adjustments” to which Areizaga replied that “that is the way it is practiced in Puerto Rico.” (Id.)

Disagreeing with said position, Dr. Franceschi went to the Hospital’s administrator who in turn indicated that the contractual adjustments were “costumbre y *260 uso” (custom and usage) in the Hospital industry. (Id.) Before that day, Dr. Fran-ceschi had never been informed that the Hospital would be making those contract adjustments. He stated that had he known such was the case, he would not have entered into the contract. (Id.) But Dr. Franceschi continued working. (Id.) He decided that he would comply with the remainder of his term under the agreement and that he would not renew the contract with the Hospital which was set to expire in December of 1994. (Id. at 15.) Once the contract obligation concluded, Dr. Franceschi indicated to his wife that he believed the Hospital owed him money. (Id.) The present lawsuit ensued.

The case was called for jury trial on April 19, 2004. (Docket No. 85.) At the close of plaintiffs’ presentation of the ease, the Hospital moved for judgment as a matter of law which I denied with a ruling from the bench. (Tr. at 49.) The defendant then presented its case which included the testimonies of Hiram Irizarry and Marcos Reyes. At the close of all of the evidence, the Hospital failed to move for judgment as a matter of law. The jury returned a verdict in favor of plaintiffs and awarded $152,792 for the breach of the professional services contract and $100,000 to each plaintiff for mental and emotional anguish. (Docket No. 93.) The Hospital now moves for judgment as a matter of law or for a new trial and remittitur. I consider both motions in turn.

III. DISCUSSION

A. Motion for Judgment as a Matter of Law

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Bluebook (online)
326 F. Supp. 2d 257, 2004 WL 1613561, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franceschi-v-hospital-general-san-carlos-inc-prd-2004.