Giusti v. C. H. Weston Co.

108 P.2d 1010, 165 Or. 525, 1941 Ore. LEXIS 107
CourtOregon Supreme Court
DecidedSeptember 19, 1940
StatusPublished
Cited by20 cases

This text of 108 P.2d 1010 (Giusti v. C. H. Weston Co.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Giusti v. C. H. Weston Co., 108 P.2d 1010, 165 Or. 525, 1941 Ore. LEXIS 107 (Or. 1940).

Opinion

LUSK, J.

In the autumn of 1935 the plaintiff was a member of the football squad of Washington High school in the city of Portland. As such he was entitled to the benefits of a contract entered into by the school with the defendant C. H. Weston Company, an Oregon corporation authorized to do business as a hospital association. By the terms of this contract Weston Company agreed to render medical and surgical services to the members of the football squad for a period of one year commencing September 9,1935. The plaintiff sustained an injury claimed to be a dislocation of the left shoulder while playing in a football game on September 14, 1935, and a similar injury in another game on September 20, 1935. Thereafter the plaintiff sought and was given medical attention at. the offices of the Weston Company. On January 3, 1939, he brought this action to recover damages for the alleged malpractice of the defendants, Weston Company, H. R. Shields and Merrell A. Sisson, physicians and surgeons in the employ of the company, and Lynn Jones, another employe not a physician. The gist of the plaintiff’s complaint is that the defendants negligently failed to diagnose his injury as a dislocation of the shoulder and negligently advised him to continue to play football; that he acted on this advice, and as a result suffered thereafter repeated dislocations of the shoulder with a consequent permanent injury.

At the trial a motion for a judgment of involuntary nonsuit, submitted by the defendant Lynn Jones, was allowed. Motions for nonsuit and a directed verdict submitted by the other defendants were denied. The *529 jury returned a verdict in the favor of the plaintiff in the sum of $5,000. From a judgment entered upon such verdict the defendants, other than Jones, have appealed.

We will consider first the errors assigned upon the denial of the motions for nonsuit and directed verdict. They were based upon the grounds, common to all the appealing defendants, that the proof failed to show negligence or that the acts of the defendants were the proximate cause of injury to the plaintiff; and with respect to the defendant Weston Company alone, that the defendants Shields and Sisson were independent contractors and that the company is, therefore, not liable for their negligence, but only for the failure to exercise ordinary care in the selection of reasonably competent and skillful physicians and surgeons.

The last point is, we think, without merit. The evidence discloses that Weston Company is engaged in the business of furnishing medical, surgical and hospital services for a profit. The defendants Shields and Sisson are physicians and surgeons who were, at the time of the events with which this cause is concerned, regular employes of Weston Company. They were furnished office space in the company offices and were paid monthly salaries. They were permitted to have their own patients, but in the offices so furnished them they rendered on behalf of their employer the professional services which Weston Company undertook to perform in the contract with Washington High school and in other contracts of like character — services, it may be added, which were a part of the objects and purposes for which the corporation was organized: §46-901, Oregon Code 1930.

In these circumstances we think that the legal relationship existing between Weston Company and the *530 doctors employed by it was that of master and servant, and that Weston Company is liable for their negligent acts upon the principle of respondeat sv/perior. The question has never before been decided by this court. It was suggested in Feazle v. Industrial Hospital Association, 164 Or. 630, 103 P. (2d) 300, though the circumstances under which the physician was employed in that case were different from those found here. The case, however, was disposed of on other grounds. The great weight of authority supports what seems to us to be the salutary rule that persons and hospitals that treat patients for hire with the expectation and hope of securing therefrom gain and profit are liable for negligence and malpractice on the part of physicians and nurses employed by them: 21 R. C. L., Physicians and Surgeons, 395, § 39; Brant v. Sweet Clinic, 167 Wash. 166, 8 P. (2d) 972; Jenkins v. Charleston General Hospital and Training School, 90 W. Va. 230, 110 S. E. 560, 22 A. L. R. 323; Owens v. Atlantic Coast Lumber Corp., 108 S. C. 258, 94 S. E. 15. The only case in support of its position cited by counsel for Weston Company is Union Pacific Railroad v. Artist, 60 Fed. 365, 23 L. R. A. 581. This and other cases of like effect cited in 5 Labatt’s Master and Servant, pp. 6214 et seq., § 2005, and in 29 A. L. R. 742, are authority for the proposition that where a corporation maintains a hospital and medical department for the benefit of its employes, supported by the voluntary contributions of the corporation and of its employes without the purpose to profit thereby, the enterprise is regarded as a charity and the corporation is not liable for the malpractice of the physicians or the negligence of the attendants it employs, but is responsible only for the want of ordinary care in selecting them. The opinion in the Artist *531 case, written by Circuit Judge Sanborn, recognizes the distinction between medical and hospital services furnished under those conditions and a case like the present, the court saying:

“If one contracts to treat a patient in a hospital— or out of it, for that matter- — for any disease or injury, he undoubtedly becomes liable for any injury suffered by the patient through the carelessness of the physicians or attendants he employs to carry out his contract. If one undertakes to treat such a patient for the purpose of making profit thereby, the law implies the contract to treat him carefully and skilfully, and holds him liable for the carelessness of the physicians and attendants he furnishes.”

It is argued that a physician, by the very nature of the services he renders, is not subject to the control of those who employ him, and, therefore, that he must be regarded as an independent contractor and not as a servant. But the test of the right to exercise control over the agent as to the manner and details of his work, in a case of this ldnd, must give way to the rule that one bound to performance of a duty by contract cannot absolve himself from such obligation by devolution of performance thereof upon a stranger to it: Jenkins v. Charleston Hospital and Training School, supra; Owens v. Atlantic Coast Lumber Corp., supra; 39 C. J. 1339, § 1549; 29 A. L. R. 737, annotation. By the contract in the instant case Weston Company promised and agreed, among other things, “to provide medical and surgical and hospital services, including dental services, medicines, medical and surgical appliances, X-ray and clinical laboratory diagnosis and physiotherapy for the members of the football squad of the school.” It would not be a compliance with this undertaking, in our opinion, to provide these services *532

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Bluebook (online)
108 P.2d 1010, 165 Or. 525, 1941 Ore. LEXIS 107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/giusti-v-c-h-weston-co-or-1940.