Hagen v. Siouxland Obstetrics & Gynecology, P.C.

23 F. Supp. 3d 991, 38 I.E.R. Cas. (BNA) 783, 2014 U.S. Dist. LEXIS 73572, 2014 WL 2446124
CourtDistrict Court, N.D. Iowa
DecidedMay 30, 2014
DocketNo. C 11-4047-MWB
StatusPublished
Cited by7 cases

This text of 23 F. Supp. 3d 991 (Hagen v. Siouxland Obstetrics & Gynecology, P.C.) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hagen v. Siouxland Obstetrics & Gynecology, P.C., 23 F. Supp. 3d 991, 38 I.E.R. Cas. (BNA) 783, 2014 U.S. Dist. LEXIS 73572, 2014 WL 2446124 (N.D. Iowa 2014).

Opinion

MEMORANDUM OPINION AND ORDER REGARDING PARTIES’ POST-TRIAL MOTIONS

MARK W. BENNETT, District Judge.

TABLE OF CONTENTS

I. INTRODUCTION. co CO

A. Factual Background. co CO

1. The parties and their relation to each other co CO

2. The facts surrounding Hagen’s Bring. CO CO 05

[995]*995B. Procedural Background.998

II. LEGAL ANALYSIS. 1000

A. Defendants’ Motion for Judgment as a Matter of Law.1000

1. Standard for granting judgment as a matter of law.1000
2. The challenged public policg exceptions.1000

a. Whether Iowa law recognizes Protected Conduct 3, 4, or 5 as protected activity that can support a claim for wrongful discharge in violation of Iowa public policy.... 1001

b. Whether the trial evidence was sufficient to support the jury’s findings that Hagen was fired for engaging in Protected Conduct 3 or 5.1001

/. Sufficiency of evidence for Protected Conduct 3.1001

ii. Sufficiency of evidence for Protected Conduct 5.1002

3. Hagen’s status as an at-will vs. contractual employee.1004

B. Defendants’Motion for a New Trial.1004

1. Standard for granting a new trial.1005
2. The challenged jury instructions.1006

a. An overriding business justification .1006

b. Calculating past lost earnings based on when Hagen would have “voluntarily” left Siouxland .1009

3. Whether the verdict is against the great weight of the evidence_1011

4. Defendants’evidentiary objections. 1011

C. Plaintiff’s Motion for Judgment as a Matter of Law, Motion for Judgment, and Motion to Alter or Amend Judgment.1012

1. Plaintiff’s request for an additur.1013

a. Is Hagen’s additur requestprocedurally barred?.1013

b. Would Hagen’s proposed additur be unconstitutional?.1014

2. Plaintiff’s request for pre- and post-judgment interest.1015

III. CONCLUSION .1016

In this memorandum opinion, I must resolve a number of post-trial motions from both Plaintiff and Defendants following a jury trial in which a jury found Defendants liable for wrongfully discharging Plaintiff in violation of Iowa public policy. On May 22, 2013, Defendants filed a post-trial motion requesting judgment as a matter of law, or alternatively a new trial (docket no. 119). On May 24, 2013, Plaintiff filed a post-trial motion requesting that I award Plaintiff additional damages as well as pre- and post-judgment interest on the damages the jury awarded (docket no. 121). On July 5, 2013, both Plaintiff and Defendants filed supplemental briefs, at my request, covering a number of issues discussed below (docket nos. 134 and 137). The parties presented oral arguments on their motions on August 23, 2013.

After hearing from the parties, I decided to stay this case while I certified to the Iowa Supreme Court three questions related to the parties’ post-trial motions. On May 9, 2014, the Iowa Supreme Court declined to answer any of the certified questions. Now that the Iowa Supreme Court has returned the certified questions to me, I lift the stay and I address the parties’ motions. For the reasons discussed below, Defendants’ motion for judgment as a matter of law and motion for a new trial are denied. Plaintiffs motion for an additur is denied and Plaintiffs motion for pre- and post-judgment interest' is granted.

I. INTRODUCTION

Unless I note otherwise, the following facts are presented “in the light most favorable to the jury verdict, assuming all [996]*996conflicts in the evidence were resolved in [the Plaintiffs] favor, and giving Plaintiff[ ] the benefit of all reasonable inferences that may be drawn from the evidence.... ” Craig Outdoor Adver., Inc. v. Viacom Outdoor, Inc., 528 F.3d 1001, 1013 (8th Cir.2008).

A. Factual Background

In this case, Dr. Edward Hagen (Hagen) sued his former employer, Siouxland Obstetrics & Gynecology, P.C. (Siouxland), and his former partners, Dr. Paul Eastman (Eastman), Dr. Tauhni Hunt (Hunt), and Dr. Angela Aldrich (Aldrich) (collectively “the Siouxland Defendants”) for wrongful discharge in violation of Iowa public policy. In particular, Hagen claims that the Siouxland Defendants ousted him from their medical practice because Hagen reported, or threatened to report, to St. Luke’s hospital and a patient, that Eastman and two nurses committed medical malpractice causing an unborn baby’s death. Hagen also claims that the Sioux-land Defendants ousted him for consulting with attorneys about whether Eastman and the nurses had committed malpractice and whether Hagen should report Eastman to the Iowa Board of Medicine or St. Luke’s.

I. The parties and their relation to each other

Siouxland, an Iowa professional corporation, is located in Sioux City, Iowa, and provides obstetric and gynecologic services to patients. Siouxland expanded into the area of cosmetic surgery and related services, including the development of The Rejuvenation Centre, which provided client services such as Botox treatment, Juviderm treatment, hair removal, liposuction, massage therapy, and weight loss consultation. Siouxland was formed and organized by three physicians, including Hagen’s father, in 1975. At the time of Hagen’s firing, in November 2009, the doctors with an interest in Siouxland were Hagen, Eastman, Hunt, and Aldrich.

Hagen- is a doctor of obstetrics and gynecology, presently licensed to practice medicine in Iowa, South Dakota, and Wisconsin. On January 1, 1993, Hagen entered into an employment agreement with Siouxland. Hagen has been an equity owner, president, and director at Sioux-land. At the time he was fired, Hagen was the president of Siouxland.

When the doctors joined Siouxland, they agreed not to “engage in the practice of medicine except as an employee of the CORPORATION unless otherwise authorized by the Board of Directors.” The employment agreement states all income generated “for services as a doctor and all activities relating thereto, such as lecturing, writing articles and consulting work, shall belong to the CORPORATION. A doctor could be terminated by delivering a written notice of cancellation at least 90 days prior to the effective date of cancellation or “discharged by the CORPORATION in the event of embezzlement or other theft; willful contravention of professional ethics; substantial and willful violation of any other terms or conditions of this employment agreement, all subject to determination by the Board of Directors of the CORPORATION.”

2. The facts surrounding Hagen’s fír-ing

Hagen’s claims in this case arise out of an incident that began at St.

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23 F. Supp. 3d 991, 38 I.E.R. Cas. (BNA) 783, 2014 U.S. Dist. LEXIS 73572, 2014 WL 2446124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hagen-v-siouxland-obstetrics-gynecology-pc-iand-2014.