Indep. Phlebotomy & Health Servs., L.L.C. v. Croston

2024 Ohio 2349, 246 N.E.3d 1021
CourtOhio Court of Appeals
DecidedJune 18, 2024
Docket2023CA00122
StatusPublished

This text of 2024 Ohio 2349 (Indep. Phlebotomy & Health Servs., L.L.C. v. Croston) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Indep. Phlebotomy & Health Servs., L.L.C. v. Croston, 2024 Ohio 2349, 246 N.E.3d 1021 (Ohio Ct. App. 2024).

Opinion

[Cite as Indep. Phlebotomy & Health Servs., L.L.C. v. Croston, 2024-Ohio-2349.]

COURT OF APPEALS STARK COUNTY, OHIO FIFTH APPELLATE DISTRICT

INDEPENDENT PHLEBOTOMY : JUDGES: & HEALTH SERVICES, LLC, : Hon. Patricia A. Delaney, P.J. : Hon. Craig R. Baldwin, J. : Hon. Andrew J. King, J. Plaintiff - Appellant : : -vs- : : STEVEN CROSTON, et al., : Case No. 2023CA00122 : Defendants - Appellees : OPINION

CHARACTER OF PROCEEDING: Appeal from the Canton Municipal Court, Case No. 2023-CVF-00477

JUDGMENT: Affirmed

DATE OF JUDGMENT: June 18, 2024

APPEARANCES:

For Plaintiff-Appellant For Defendants-Appellees

KEVIN J. BREEN JOEL BLUE Kevin J. Breen Co., LLC 6820 Mapleridge Circle., NW 3500 West Market Street, Suite 4 Canton, Ohio 44718 Fairlawn, Ohio 44333 Stark County, Case No. 2023CA00122 2

Baldwin, J.

{¶1} The appellant appeals the trial court’s decision granting the appellees’

motion for summary judgment based upon its finding that the parties entered into an

employment contract which should be rescinded.

STATEMENT OF THE FACTS AND THE CASE

{¶2} The appellant is a limited liability company that conducts “consultative

examinations” of disability claimants for submission to the Opportunities For Ohioans With

Disabilities Division of Disability Determination (herein, “the OOD DDD”). The OOD DDD

processes applications made to the Social Security Administration (SSA) for Disability

Insurance (SSDI) and Supplemental Security Income (SSI). The OOD DDD may require

consultative examinations of claimants for continued payment of disability benefits and,

when required, consultative examinations must be conducted by a medical professional.

The appellant hires physicians and other medical professionals to conduct the

consultative examinations in the usual course of its business operations.

{¶3} Appellee Steven Croston is a licensed Physician’s Assistant, and his wife

Heidi Croston is a licensed Certified Nurse Practitioner. Appellee Steven Croston

responded to the appellant’s job posting on Indeed.com. The posting stated that the

primary duty of the position would be performing consultative examinations. Appellee

Steven Croston interviewed for the job, and suggested at the conclusion of his interview

that his wife, appellee Heidi Croston, may also be a good fit for the position. Both

appellees executed a document with the appellant entitled Professional Services

Agreement (hereinafter “Agreement.”) The appellees entered into the Agreement with

the appellant on October 17, 2022, to provide disability examinations for the appellant’s Stark County, Case No. 2023CA00122 3

clients pursuant to its contract with the OOD DDD. The Agreement was to commence on

November 1, 2022. The Agreement stated that the appellees agreed to schedule, at a

minimum, four weekday exams per month within a 12-month period. In addition, the

Agreement specified at Exhibit A that “a minimum of 4 weekdays per month are required

to be compliant with this contracted agreement.” The appellant agreed to pay the

appellees $100.00 per completed exam. The appellees were scheduled to begin working

on December 6, 2022.

{¶4} The appellant scheduled appointments for the appellees with claimants

seeking an examination to determine their eligibility for social security benefits, and

scheduled twenty individuals for appellee Steven Croston to examine on December 6,

2022. He arrived at the appellant’s office early and began the first exam. There is nothing

in the record establishing that the appellees were provided with any supervision from a

licensed physician in the exercise of their consultative examination duties, only that the

appellant had arranged for the appellees to shadow its resident physician. See, Robinette

affidavit, attached to appellant’s motion for summary judgment, at paragraph 12.

{¶5} Appellee Steven Croston became concerned during the first exam about

issues regarding his ability to perform the examinations within the time-frame scheduled

by the appellant, and about licensing and supervision requirements. He met with the

appellant in her office after the first exam to express these concerns, and when it was

clear that the conditions would remain the same he quit, performing no further work for

the appellant. Appellee Heidi Croston learned of the issues her husband had experienced

on December 6, 2022, and resigned before attending her first day of work. She performed

no examinations on the behalf of the appellant, and performed no other work for the Stark County, Case No. 2023CA00122 4

appellant. Neither appellee received any consideration or payment from the appellant in

connection with the Agreement.

{¶6} The appellant filed a pro se complaint against the appellees for breach of

contract,1 averring that the appellees were in breach of the Agreement and that it had

suffered damages in the amount of $9,690.00 as a result. The appellant thereafter

claimed damages in the amount of $10,000.00, and $14,999.00. The appellant’s basis for

calculating its alleged damages varied as the case proceeded.

{¶7} The appellees filed their answer pro se, and argued that the Agreement was

in violation of Ohio law because it required them to perform the consultative examinations

without the direct supervision of a physician. They later obtained counsel, and argued

that, while the Agreement referred to them as independent contractors, they were in fact

employees who were free to terminate their employment with the appellant.

{¶8} The appellant filed a motion for summary judgment arguing that the

appellees were in breach of contract, and that it had suffered damages as a result,

attaching the affidavit of Brenda Robinette purporting to support its arguments. The

Robinette affidavit reiterated the allegations contained in the complaint and referenced

several unauthenticated documents that were attached to the affidavit as exhibits.

{¶9} The appellees filed a brief in opposition to the appellant’s motion for

summary judgment, as well as their own motion for summary judgment, arguing that the

contract was not in compliance with Ohio law since it required them to work without the

direct supervision of a physician; and, that they were employees who could terminate

1 Brenda Robinette, who filed the complaint pro se on behalf of her business Independent Phlebotomy &

Health Services, LLC, was advised by the trial court that representing her business constituted unauthorized practice of law. Attorney Edward Gilbert thereafter entered an appearance on the appellant’s behalf. Stark County, Case No. 2023CA00122 5

their employment with the appellant at will. The appellees’ brief in opposition/motion for

summary judgment relied upon the pleadings as the Civ.R. 56(C) evidentiary quality

materials that supported of their arguments. The Robinette affidavit stated only that she

had arranged for the appellees to shadow a physician; it contained no reference to a

supervision agreement with the physician.

{¶10} The trial court issued a Judgment Entry on August 21, 2023, in which it

found that the Agreement was an executory contract in which no party had performed,

the appropriate remedy for which was rescission. The trial court denied the appellant’s

motion for summary judgment and granted the appellees’ motion for summary judgment.

{¶11} The appellant filed a timely appeal in which she sets forth the following three

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Bluebook (online)
2024 Ohio 2349, 246 N.E.3d 1021, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indep-phlebotomy-health-servs-llc-v-croston-ohioctapp-2024.