Jeanne Hawkins And Julie Wilson v. Empres Healthcare Mgmt, Llc.

371 P.3d 84, 193 Wash. App. 84
CourtCourt of Appeals of Washington
DecidedMarch 28, 2016
Docket72949-7-I
StatusPublished
Cited by10 cases

This text of 371 P.3d 84 (Jeanne Hawkins And Julie Wilson v. Empres Healthcare Mgmt, Llc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jeanne Hawkins And Julie Wilson v. Empres Healthcare Mgmt, Llc., 371 P.3d 84, 193 Wash. App. 84 (Wash. Ct. App. 2016).

Opinion

*88 [As amended by order of the Court of Appeals June 8, 2016.]

Leach, J.

¶1 — Jeanne Hawkins and Julie Wilson appeal the trial court’s dismissal of their claims for fraud and misrepresentation based on the defendants’ alleged alteration of Hawkins’s medical records. The trial court ruled that an earlier settlement agreement Hawkins signed (the Release) barred her claims. The trial court also found that res judicata barred Hawkins’s claim for declaratory relief. Because the Release does not address claims for fraudulent inducement, it does not bar those claims. We therefore reverse the trial court and remand for further proceedings. And because Hawkins has not argued that other relief is inadequate, we affirm the trial court’s dismissal of her claim for declaratory relief.

FACTS

Substantive Facts 1

¶2 In mid-June 2007, Hawkins had surgery at Valley Medical Center. On July 9, 2007, Valley diagnosed her with a bacterial infection and discharged her directly to the Talbot Center for Rehabilitation and Healthcare. Her physician at Valley, Dr. Hori, prescribed two antibiotics, gentamicin and vancomycin, to treat her infection. On July 13, 2007, Hawkins’s lab work at Talbot read, ‘Vancomycin trough critically high at 18.7. Called MD.” On July 14, her lab work again showed abnormal results. These lab reports indicated that Hawkins was receiving an overdose of antibiotics. Talbot nonetheless continued to administer gen- *89 tamicin and vancomycin. After experiencing a burning sensation in her throat, a dry cough, and an inability to breathe, Hawkins asked to be taken to the hospital. Hawkins’s attending physician at Talbot, Dr. Chen, approved her transfer back to Valley.

¶3 Talbot provided Hawkins’s daughter, Julie Wilson, with a copy of Hawkins’s records. Talbot staff maintained all medical charts and patient care records for Dr. Chen’s patients, and Dr. Chen did not maintain any separate charts or notes.

¶4 At Valley, emergency room physicians diagnosed Hawkins “with acute renal failure due to gentamicin and/or vancomycin nephrotoxicity and acute tubulonecrosis”—in short, kidney failure from an antibiotics overdose. For the next year and a half, Hawkins needed treatment for symptoms this overdose caused. She is permanently impaired.

Procedural Facts

¶5 Jeanne Hawkins and Julie Wilson (collectively Hawkins) first sued Talbot in 2008. In that lawsuit (underlying suit), Hawkins alleged that Talbot administered the antibiotics for longer than Dr. Hori prescribed or recommended. She stated Dr. Chen did not respond to the alarming July 14 lab report. She further alleged that Dr. Chen again received alarming lab results on July 23, 2007, and simply responded in writing, “O.K.” She claimed that Talbot’s negligent conduct caused her injuries. She made claims of general negligence and violations of federal and state statutory standards of care. She also alleged that Talbot breached its duty of informed consent, was liable under the doctrines of corporate negligence and respondeat superior, and violated the Consumer Protection Act, chapter 19.86 RCW. Hawkins did not allege any failure to keep accurate records, falsification of medical records, dishonesty, fraud, or misrepresentation.

¶6 During discovery, Hawkins requested a complete copy of Hawkins’s medical records and charts. Talbot did not *90 provide records. Instead, it responded that it had provided Hawkins with all her medical records when it provided her daughter with a copy. Throughout the underlying suit, Hawkins relied on Talbot’s representation that those medical records were complete and accurate.

¶7 Hawkins and Talbot settled on July 29, 2010. The Release states that Hawkins releases future claims against Talbot. 2 The Release contains a no-reliance clause warranting that Hawkins did not rely on any representation by Talbot “concerning the nature and extent of the injuries, and/or damages, and/or legal liability therefor.” In negotiating and accepting the settlement, Hawkins considered the comparative negligence of Talbot and that of Dr. Chen as described in the records Talbot gave Wilson. Those records showed that Dr. Chen failed to monitor her test results properly and discontinue her antibiotics. Before settlement, Talbot asserted as a defense that its staff simply followed Dr. Chen’s orders.

¶8 After settling with Talbot, Hawkins sued Dr. Chen. During discovery in that suit, Dr. Chen requested and received copies of Hawkins’s medical records from Talbot. During mediation in November 2011, the parties discovered that the medical records Talbot gave Dr. Chen differed from the records it gave Wilson in August 2007. The authentic records included a lab report dated July 23, 2007, reporting “HIGH” creatinine. This report was identical to the one Wilson had, except for a handwritten note and a facsimile *91 machine date stamp. The report given to Dr. Chen had a handwritten note directing Talbot to stop administering the antibiotics, to “push fluids,” and to recheck Hawkins’s blood levels after three days. Dr. Chen denied making the “O.K. John Chen” note contained on the report Talbot supplied to Hawkins. He stated he did not know how or why it was made. A forensic document examiner examined the reports and concluded that the “O.K. John Chen” notes “were mechanically or electronically cut from a [common] source document and pasted onto the intended documents.”

¶9 Hawkins asked Talbot for a new mediation. Talbot refused this request, calling the discrepancies in the records “ ‘innocent and immaterial.’ ” Hawkins then filed this lawsuit, claiming fraud and misrepresentation based on falsified medical records. She asked the court to rescind the Release and vacate the order of dismissal. Alternatively, she asked for a declaratory judgment saying the Release did not apply to independent causes of action based on the falsified records, including breach of some of the same federal and state laws cited in the underlying suit.

¶10 Talbot asked the trial court to dismiss Hawkins’s complaint under CR 12(b)(6). It claimed that the Release barred all the claims made by Hawkins. Alternatively, Talbot claimed that Hawkins had failed to plead the fraud and misrepresentation claims sufficiently. Talbot also contended that Hawkins could not seek rescission because she had not returned the settlement money paid to her. Talbot asserted that res judicata barred Hawkins’s declaratory judgment claim.

¶11 The trial court dismissed the lawsuit. It decided that the Release barred Hawkins’s claims and that res judicata barred Hawkins’s declaratory judgment action. The court also called it “questionable whether, as a matter of law, [Hawkins] had the right to rely on the alleged falsifications and misrepresentations.” The trial court did not address Talbot’s argument based on Hawkins’s retention of the settlement money. Hawkins appeals.

*92 STANDARD OF REVIEW

¶12 This court reviews a CR 12(b)(6) dismissal de novo.

Related

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Bluebook (online)
371 P.3d 84, 193 Wash. App. 84, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jeanne-hawkins-and-julie-wilson-v-empres-healthcare-mgmt-llc-washctapp-2016.