Frankeny v. District Hospital Partners, LP

District of Columbia Court of Appeals·Decided February 27, 2020·No. 18-CV-628·Published

Opinion

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DISTRICT OF COLUMBIA COURT OF APPEALS No. 18-CV-628

RACHEL M. FRANKENY, APPELLANT, v.

DISTRICT HOSPITAL PARTNERS, LP, ET AL., APPELLEES.

Appeal from the Superior Court of the District of Columbia (CAB-3349-16)

(Hon. Florence Y. Pan, Trial Judge)

(Argued June 19, 2019 Decided February 27, 2020)

Jacob M. Lebowitz for appellant.

Christopher M. Corchiarino, for appellees. Thomas V. Monahan, Jr. and Jhanelle A. Graham Caldwell were on the brief.

Before BLACKBURNE-RIGSBY, Chief Judge, THOMPSON, Associate Judge, and RUIZ, Senior Judge.

BLACKBURNE-RIGSBY, Chief Judge: In this appeal, appellant Rachel Frankeny claims that appellees District Hospital Partners, LP d/b/a The George Washington University Hospital and Universal Health Services, Inc. (together

“GWUH”) 1 violated the District of Columbia Consumer Protection Procedures Act, see D.C. Code §§ 28-3901, to -3913 (2013 Repl.) (the “CPPA” or “Act”), when GWUH failed to inform her that her bilateral tonsillectomy was to be performed in part by a first-year medical resident, rather than the seasoned board- certified surgeon whom she selected. She claims this failure constituted a material misrepresentation of the services provided in violation of the CPPA.2 The trial court granted summary judgment in favor of GWUH, concluding that Ms. Frankeny was required – but failed – to present evidence of an “entrepreneurial motive,” i.e., that the hospital’s misrepresentation was intentional and motivated by business interests or financial gain.

We conclude that the trial court erred in requiring Ms. Frankeny to provide evidence of an “entrepreneurial motive” to sustain her CPPA claims against GWUH. Under D.C. Code § 28-3904 (e) and (f), a plaintiff-consumer “need not

1 Appellee District Hospital Partners, LP d/b/a The George Washington University Hospital is a nongovernmental joint partnership between appellee Universal Health Services, Inc. and The George Washington University. Ms. Frankeny also sued Medical Faculty Associates and Thomas Troost, MD, but settled with them during the pendency of this appeal; both were dismissed.

2 Ms. Frankeny alleges CPPA violations under D.C. Code § 28-3904(a) & (d)-(f). Because these claims are similar and pertain to the same factual allegations, we will refer to all of her CPPA claims together as “misrepresentation,” unless stated otherwise.

allege or prove intentional misrepresentation or failure to disclose to prevail on a claimed violation of” the CPPA. Fort Lincoln Civic Ass’n, Inc. v. Fort Lincoln New Town Corp., 944 A.2d 1055, 1073 (D.C. 2008) (“Fort Lincoln”). We extend that reasoning and hold that a plaintiff consumer need not allege or prove intentional misrepresentation to claims made under D.C. Code § 28-3904(a) and (d). Moreover, we reject any requirement that a CPPA claim allege an “entrepreneurial nexus.” Accordingly, we reverse the grant of summary judgment and remand this case for trial.

I. Factual Background

The record viewed in the light most favorable to Ms. Frankeny, as the non-

moving party, is as follows. In 2013, Ms. Frankeny suffered from sleep apnea and sought the care of Dr. Thomas Troost, a board certified otolaryngologist (ear, nose, and throat surgeon) who practiced at The George Washington University Hospital. At Dr. Troost’s recommendation, Ms. Frankeny agreed to a bilateral tonsillectomy to treat her sleep apnea. Ms. Frankeny signed two Patient Authorization Forms, one on May 7, 2013, during a preoperative assessment, and another on May 9, 2013, the day of the surgery. In relevant part, both Patient Authorization Forms stated that Ms. Frankeny understood that, “The George Washington University

Hospital is a teaching hospital,” and that her “health care team will be made up of hospital personnel (to include nurses, technicians, and ancillary staff) under the direction of my attending physician and his/her assistants and designees (to include interns, residents, fellows and medical students).” Ms. Frankeny also signed a Patient’s Request for Procedure, Operation, and Treatment form on May 9, 2013, which likewise stated that, “Knowing that the George Washington University Hospital is a teaching institution, I understand that along with my doctor and his/her assistants and designees, other Hospital personnel such as residents, trainees, nurses, and technicians will be involved in my procedure/operation/treatment and care.” This Form expressly stated, “I understand and agree to the presence of appropriate observers for the advancement of medical education and care.” Ms. Frankeny did not understand the forms as requesting her approval for someone other than Dr. Troost to perform the surgery; instead, she understood the forms to mean that other medical staff would be “involved” by, for example, observing the surgery or providing related services. Ms. Frankeny further did not recall GWUH informing her that someone other than Dr. Troost would perform the procedure. Ms. Frankeny claims that, had GWUH told her that a resident could perform part of the procedure, it would have raised “a huge red flag,” and she probably would not have agreed to go forward. Ultimately, without Ms. Frankeny’s knowledge, a first-year resident, Dr. Johnny Mai,

performed at least part of the surgical procedure under the direction of Dr. Troost.3 Ms. Frankeny claims that she suffered a “significant and permanent loss of her sense of taste” following the surgery. 4

On May 5, 2016, Ms. Frankeny filed suit against GWUH for not disclosing Dr. Mai’s involvement, which she argues was a material misrepresentation of services rendered in violation of the CPPA. See D.C. Code § 28-3904(a) & (d)-(f). GWUH subsequently filed a motion for summary judgment, and a hearing on the motion was held on May 11, 2018. At the hearing, the trial court observed that, in its view, Ms. Frankeny’s CPPA claims turned on one issue: whether there was evidence of an “entrepreneurial motive,” i.e., “an intentional misrepresentation that is motivated by financial or entrepreneurial considerations” on GWUH’s part in failing to inform Ms. Frankeny of Dr. Mai’s role in her surgery. Although recognizing that intent and scienter are not ordinarily required to prove a CPPA claim, the court noted a difference between “general” CPPA claims and CPPA claims brought in the medical services context. The trial court’s conclusion was

3 It is unclear from the record whether Dr. Mai removed one or both tonsils.

4 In connection with Ms. Frankeny’s allegations of injury, she filed suit in the D.C. Superior Court for medical malpractice, lack of informed consent, and battery in Case No. 2016-CA-6461-M. The medical malpractice suit was settled against all parties and dismissed.

based on its interpretation of two federal district court decisions: Dorn v. McTigue, 121 F. Supp. 2d 17 (D.D.C. 2000) (“Dorn I”), and Dorn v. McTigue, 157 F. Supp. 2d 37 (D.D.C. 2001) (“Dorn II”). Finding no evidence that GWUH intentionally failed to disclose Dr. Mai’s involvement to Ms. Frankeny for financial gain or business interests, the trial court granted summary judgment in favor of GWUH. This appeal followed.

II. Legal Framework

We review de novo the trial court’s grant of summary judgment. Briscoe v.

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