Jewish Hospital Healthcare Services, Inc. v. Louisville/Jefferson County Metro Government

270 S.W.3d 904, 2008 Ky. App. LEXIS 362, 2008 WL 4889526
CourtCourt of Appeals of Kentucky
DecidedNovember 14, 2008
Docket2008-CA-000095-MR
StatusPublished
Cited by22 cases

This text of 270 S.W.3d 904 (Jewish Hospital Healthcare Services, Inc. v. Louisville/Jefferson County Metro Government) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jewish Hospital Healthcare Services, Inc. v. Louisville/Jefferson County Metro Government, 270 S.W.3d 904, 2008 Ky. App. LEXIS 362, 2008 WL 4889526 (Ky. Ct. App. 2008).

Opinion

OPINION

LAMBERT, Judge.

Jewish Hospital appeals from the dismissal of its claims against Louisville/Jefferson County Metro Government, wherein the Jefferson Circuit Court found Louisville/Jefferson County Metro Government was entitled to sovereign immunity. After careful review, we affirm in part and vacate and remand in part.

Louisville/Jefferson County Metro Government (hereinafter “Metro Government”), as well as the Commonwealth, have entered into a contract known as the Quality and Charity Care Trust (hereinafter “QCCT”), under the provisions of which indigent residents of Jefferson County, including inmates of Metro Corrections, receive medical care at the University of Louisville Hospital (hereinafter “University Hospital”). Additionally, a diversion plan has been put into operation by the Louisville area hospitals, without consultation with Metro Government, which permits any hospital to deem itself to have insufficient facilities available and subsequently to divert incoming patients to other hospitals in the area. This case involves the interaction of this diversion plan with the QCCT.

From time to time when Metro Government sent inmates to University Hospital, which had been paid by the QCCT, University Hospital diverted the inmates to Jewish Hospital without Metro Government’s consent. Metro Government has refused to pay Jewish Hospital for services rendered; arguing that to do so would be the equivalent to paying double since it already paid for services via the QCCT. Jewish Hospital filed suit against Metro Government seeking a declaration that Metro Government may not refuse to reimburse Jewish Hospital for medical care it provides to indigent inmates and to recover the costs, approximately $300,000.00, associated with providing medical care to indigent inmates in Metro Government’s custody.

Following limited discovery and extensive briefing on the issues, the Jefferson Circuit Court granted summary judgment to Jewish Hospital, ruling that Metro Government was liable for the costs of medical care provided to indigent prisoners. Metro Government, pursuant to Kentucky Rules of Civil Procedure (CR) 59, moved the Jefferson Circuit Court to vacate, alter, or amend its order granting summary judgment. Metro Government simultaneously moved the court to dismiss all claims being made against it by Jewish Hospital on the grounds that they were entitled to sovereign immunity. The court granted both of Metro Government’s mo *907 tions and dismissed Jewish Hospital’s claims. This appeal followed.

Jewish Hospital first argues that Metro Government is not entitled to sovereign immunity because the General Assembly allegedly waived the immunity by requiring county jails to pay for necessary medical care of indigent prisoners under KRS 441.045(3). We find this argument without merit.

“Immunity from suit is a sovereign right of the state.” Foley Construction Company v. Ward, 375 S.W.2d 392, 393 (Ky.1963). “The General Assembly may, by law, direct in what manner and in what courts suits may be brought against the Commonwealth.” Kentucky Constitution, Section 231. A county “is a political subdivision of the Commonwealth as well, and as such is an arm of the state government. It, too, is clothed with the same sovereign immunity.” Cullinan v. Jefferson County, 418 S.W.2d 407, 408 (Ky.1967), overruled on other grounds by Yanero v. Davis, 65 S.W.3d 510, 527 (Ky.2001). Therefore, absent an explicit statutory waiver, Metro Government is entitled to sovereign immunity. The only question remaining is whether there was an explicit waiver of its sovereign immunity by the General Assembly’s enactment of KRS 441.045(3).

In Withers v. University of Kentucky, 939 S.W.2d 340 (Ky.1997), a patient argued that legislative authority to purchase medical insurance constituted a waiver of a state hospital’s sovereign immunity. The Kentucky Supreme Court, however, held that the General Assembly made clear its intention to only narrowly and explicitly waive governmental sovereign immunity. We must agree with the logic in Withers and now reiterate its holding that “[w]e will find waiver only where stated ‘by the most express language or by such overwhelming implications from the text as [will] leave no room for any other reasonable construction.’” Seeid.,quoting Murray v. Wilson Distilling Co., 213 U.S. 151, 171, 29 S.Ct. 458, 464-65, 53 L.Ed. 742 (1909)(emphasis added). The only condition expressly created by KRS 441.045 is Metro Government’s responsibility to pay for necessary medical care of indigent inmates, which it has provided for by its in-house care facilities and the QCCT. As there is no such express language in KRS 441.045 creating a waiver of immunity on all financial claims against the Metro Government for medical care of inmates, we do not find that sovereign immunity was waived in this case, and thus the trial court did not err in its dismissal on those grounds. In light of Metro Government’s sovereign immunity, we additionally find that Jewish Hospital’s claims of unjust enrichment must faü as a matter of law.

Jewish Hospital next argues that Metro Government’s refusal to reimburse them is a violation of the takings clause of the Fifth Amendment. Although Jewish Hospital is correct in asserting that intent is not necessary to find a taking, it is a factor to consider. The United States Supreme Court stated clearly that:

this Court has generally “been unable to develop any ‘set formula’ for determining when ‘justice and fairness’ require that economic injuries caused by public action be compensated by the government, rather than remain disproportionately concentrated on a few persons.” Rather, it has examined the “taking” question by engaging in essentially ad hoc, factual inquiries that have identified several factors-such as the economic impact of the regulation, its interference with reasonable investment backed expectations, and the character of the governmental action-th&t have particular significance.

*908 See Kaiser Aetna v. US, 444 U.S. 164, 175, 100 S.Ct. 383, 390, 62 L.Ed.2d 332 (1979), quoting Penn Central Transportation Co. v. City of New York, 438 U.S. 104, 124, 98 S.Ct. 2646, 2659, 57 L.Ed.2d 631 (1978)(emphasis added).

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Bluebook (online)
270 S.W.3d 904, 2008 Ky. App. LEXIS 362, 2008 WL 4889526, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jewish-hospital-healthcare-services-inc-v-louisvillejefferson-county-kyctapp-2008.