Gallagher v. Penobscot Community Healthcare

CourtSuperior Court of Maine
DecidedMarch 21, 2017
DocketPENcv-16-54
StatusUnpublished

This text of Gallagher v. Penobscot Community Healthcare (Gallagher v. Penobscot Community Healthcare) is published on Counsel Stack Legal Research, covering Superior Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gallagher v. Penobscot Community Healthcare, (Me. Super. Ct. 2017).

Opinion

STATE OF MAINE SUPERIOR COURT PENOBSCOT, ss. CIVIL DIVISION DOCKET NO. CV-16-54

WILLIAM F. GALLAGHER, M.D., ) Plaintiff, ) ) v. ) ORDER ON DEFENDANTS' ) MOTION TO DISMISS PENOBSCOT COMMUNITY HEAL TH CARE, ) ROBERT P. ALLEN, M.D., NOAH NESIN, M.D. ) TERRY WHITE, and LORI DWYER, ESQ., ) Defendants. )

Before the Court is Defendants Penobscot Community Healthcare, Robe11 Allen, Noah

Nesin, Terry White, and Lori Dwyer's motion to dismiss. Defendants move, pursuant to M.R.

Civ. P. 12(b)(6}, to dismiss all claims brought against them in Plaintiffs complaint. Heming was

held on this matter on November 29, 2016. I laving reviewed the parties' filings and their

respective arguments, and for the reasons stated below, Defendants' motion to dismiss is hereby

granted in part, denied in part, and decision is reserved in part.

BACKGROUND

This action stems from the alleged improper conduct by doctors and staff at Penobscot

Community Healthcare ("PCHC") in co1mection with the termination of Dr. Gallagher's

employment. 1 The following factual background accepts facts from Plaintiffs' complaint, which

are deemed true when evaluating a motion to dismiss.

1 AL all times relevant to this action, PCUC was Dr. Gallagher's employer, and the individual Defendants

acted in their managerial capacities and within the comse and scope of their employment with PCJIC and/or with the authorization of PCilC. (Pl. 's Com pl. ~~ 12-13.) Dr. Allen was the Executive Medical Director until April I, 2014; Dr. Nesin has been the Chief Medical Officer since March 2013; Mr. White was the Chief' Human Resources Officer unttl April 2014; and Ms. Dwyer was the General Counsel and Compliance and Risk Officer, and became Chief Human Resources Officer in April 2014. (id. ,i,i 3-6.) L>r. Gallagher was born in 1935 and at all times relevant to this action was older than 40 years of age. (id. ,i 7.) Dr. Gallagher, a licensed and board-certified dermatologist, and PCIIC entered into a

Professional Employment Agreement ("employment contract") on January 25, 2008, whereby

Dr. Gallagher agreed to perform professional medical services in return for compensation from

PCHC. (Pl.'s Compl. iii! 8, 14-15.) On that same day, Dr. Gallagher entered into an Asset

Transfer Agreement ("asset agreement"), in which PCHC acquired Dr. Gallagher's entire private

practice. (Id. 116-17.) The employment contract states that employment may be terminated as

follows:

Termination. This Agreement may be terminated by either party without cause upon sixty ( 60) days advance written notice to the other party.

Immediate Termination. Notwithstanding any other provision of this Agreement, PCHC may immediately terminate this Agreement in the event that Employee ... fails to meet what it considers critical terms of the Agreement.

(Ex. A§§ 10.2-10.3.)2 One of the critical terms of the contract describes the standard of practice

expected of the employee under the agreement:

Standard of Practice. Employee shall retain independent medical judgment and responsibility for the practice of medicine. However, Employee shall comply with procedures which may be established and/or adopted by PCIIC to assure the consistency and quality of all services. Physician shall deliver services in a competent and professional manner, consistent with quality assurance and utilization review standards of PCHC ....

(Id.§ 3.)

2 The general rule is that only the facts alleged in the complaint may be considered on a motion to dismiss, and any additional materials presented to the cou11 must either be excluded by the court or the motion shall be converted to a motion for summary judgment. Moody v. Stale Liquor & [,olle1y Comm 'n, 2004 ME 20, ~ 8, 843 A.2d 43. However, the court may consider documents that are central to the plaintiffs clairn(s) and/or referred to in the complaint without conve1ting the motion to a motion for summary judgment. Id. t I I. Herc, Defendants attached as Exhibit A the Physician Employment Agreement and the Asset Transfer Agreement, both of which were referenced explicitly in Plaintiffs complaint. (Comp I. ,,1 15-17.) Additionally, Plaintiff alleges breach of contract, which directly refers to the employment contract. See Moody, 2004 ME 20, ~ 12, 843 A.2d 43 (finding that documents containing the terms of the contract were central to the plaintiffs claim). Therefore, the Court will consider Exhibit A without converting this motion to a motion for summary judgment.

2 Sometime after Dr. Gallagher joined PCHC, staff complained that he was "old school,"

among other complaints, and these complaints were investigated by Defendants. (Pl.' s Comp!.

ii~ 19-20.) Plaintiff alleges that PCHC insufficiently investigated staff complaints because the investigation relied on inaccurate complaints and excluded positive information provided by

other witnesses. (Id. ,r 20.) Dr. Gallagher protested to Defendants about the insufficiency of

their investigation until he was threatened with adverse employment action if he did not cease

and desist his own allempts to investigate the complaints. (Id. , 22.) Dr. AIJen, Executive

Medical Director, stated to Dr. Gallagher that the investigation was "not undertaken with

intellectual vigor" and told Dr. Gallagher to retire, which he declined to do. (Id. ii 23-24.) No

evidence was uncovered suggesting that Dr. Gallagher's conduct interfered with his ability to

provide quality medical care to his patients. (Id. ii 26.)

Additionally, between 2008 and 2013, at least one patient complained that Dr. Gallagher

was elderly, senile, and demcnted. 3 (Id. ,i 20.) Plaintiff alleges that investigations into patient

complaints were mishandled in a similar fashion as the investigations into staff complaints. (Id.

,1,i 31-34.) On or about June 27, 2013, PCHC suspended Dr. Gallagher from employment effective

July 1, 2013, due to staff complaints. 4 (Id. ~ 28.) On or about April 3, 2014, Dr. Gallagher's

employment was terminated by PCHC on the basis of patient complaints that were unrelated to

age. (id. ,1,i 31, 45-46.) Plaintiff claims these adverse employment actions were just part of a

3 Additionally, Plaintiff alleges "Dr. Gallagher received l S complaints over several years" but Plaintiff does not specify the "several years" referenced. (Pl. 's Comp!. 1 37.) 4 It is unclear from the complaint when and if Dr. Gallagher's suspension ended prior Lo bis termination.

Plaintiff cites adverse employment actions rcpo11cd to the Maine State Board of Liccnsure in Medicine on July 15, 2013, October 17, 2013, and April 14, 2014. (Pl.'s Compl. 1 52 .) The first date is two weeks after Dr. Gallagher's suspension, the second date is nut referenced anywhere in the complaint, and the third date is two weeks aner Mr. Gallagher was terminated from his employment. (Id. ~~ 28, 46.) The Maine State Board of Licensure dismisser.I lhc complaint after an investigation that included, among other things, evaluation by a ncuropsychologist. (Id. ~,J 53 -5tl.)

3 "continued pattem of willful, illegal, and unjustified adverse treatment and employment action

taken against Dr. Gallagher starting as early as 2010." (Id.) Specifically, Plaintiff alleges that

Dr. Allen chose an arbitrary number of patient complaints-two per year-as a pre-textual basis

for Laking adverse employment actions against Dr. Gallagher. (id. ~ 38.) Additionally, Plaintiff

alleges that PCIIC misrepresented the basis for its employment decision. (Id.~ 29.)

In December 2012, PCHC advertised to fill a new dermatology position. (Id. , 50.) In

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