Knatt v. Hospital Service District No. 1 of East Baton Rouge Parish

289 F. App'x 22
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 24, 2008
Docket06-31180
StatusUnpublished
Cited by6 cases

This text of 289 F. App'x 22 (Knatt v. Hospital Service District No. 1 of East Baton Rouge Parish) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knatt v. Hospital Service District No. 1 of East Baton Rouge Parish, 289 F. App'x 22 (5th Cir. 2008).

Opinion

PER CURIAM: *

Plaintiff-appellant Dr. Theodore Knatt appeals the judgment dismissing his claims against all defendants-appellants arising from an alleged breach of lease and wrongful eviction by defendant-appellant Hospital Service District No. 1 of East Baton Rouge Parish, d/b/a Lane Memorial Hospital. For the reasons stated below, we affirm the district court’s judgment.

I. BACKGROUND

This is the second of two lawsuits involving the plaintiff and most of the defendants. The first lawsuit centers around the summary suspension of Dr. Theodore Knatt’s medical privileges, whereas this second suit is primarily based upon the alleged breach of Knatt’s lease and wrongful eviction. We shall discuss the facts and circumstances of the first lawsuit, which was consolidated with this ease be *24 low but resolved by the district court after this case, only inasmuch as it is necessary to provide context to this case.

In or around 1995, Knatt became the first full-time African-American physician and orthopedic surgeon in the community of Zachary, Louisiana, when he contracted to provide services to patients of Hospital Service District No. 1 of East Baton Rouge Parish, State of Louisiana, a political subdivision of the Parish of East Baton Rouge, d/b/a Lane Memorial Hospital (“Lane”). In January 1998, Knatt leased office space from Lane pursuant to a written lease agreement (the “1998 lease”). The 1998 lease had a term of twelve months beginning on February 1,1998. It also contained an automatic renewal clause for an additional three years, with the last term set to expire on January 31, 2002. Either party had an option to terminate the 1998 lease by providing written notice at least sixty days before expiration of the final lease term. The rent for the last term, February 1, 2001 through January 31, 2002, was $1,954 per month.

In March 2001, Knatt informed Lane’s CEO, Terry Whittington, that he was a primary owner spearheading the development of the Howell Place Project, a physician-owned surgical facility. The 48,000 square foot facility would be located approximately ten miles south of Lane. Knatt later described the Howell Place Project as a competitor of Lane’s for “patient dollars,” but initially invited Lane to invest in the venture. Lane’s Board of Commissioners voted against investing in the Howell Place Project, although it did offer to manage the proposed hospital. The Howell Place Project declined Lane’s offer of management services.

On November 29, 2001, Whittington sent Knatt a proposed new lease (the “2002 lease”), which Whittington had already signed, because the final term of the 1998 lease was set to expire on January 31, 2002. The 2002 lease was to begin on February 1, 2002, and expire on January 31, 2003. The 2002 lease provided for five optional renewal terms of one year each, requiring 180 days’ prior written notice for renewal. The base rent under the proposed 2002 lease was $1,875 per month, slightly less than the rate in the 1998 lease. But, under the terms of the 2002 lease, housekeeping, janitorial, and laundry services, which were included in the rent under the 1998 lease, were only available at an additional cost. Overall, if Knatt continued to use these services, the 2002 lease rate was higher than the 1998 lease rate. It is disputed whether Knatt signed and returned the 2002 lease to Whittington or otherwise agreed to its terms. Regardless, Lane continued to occupy the office space and continued to pay $1,954 a month in rent.

Knatt alleged that Lane retaliated against him for his participation in the Howell Place Project by conspiring against him and attempting to harm his professional reputation. He also claimed that a pattern of racial discrimination against him, which had always existed, escalated. Amongst other things, Knatt contended that complaints from nurses — that Knatt was abusive to staff and at other times seemed impaired while performing surgical procedures — were part of a coordinated campaign to defame his reputation and undermine the Howell Place Project. Ultimately, as a result of the complaints, at a May 8, 2002, meeting of Lane’s Executive Bylaws Committee, Knatt was summarily suspended from medical staff privileges for twenty-one days. Knatt’s privileges were later reinstated, and the summary suspension was removed from his record. However, on May 5, 2003, Knatt filed the first of two lawsuits against Lane and several of its agents and employees in Louisiana *25 state court. Knatt asserted eleven claims that arose out of the events leading up to his suspension, including claims under the Louisiana Unfair Trade Practices and Consumer Protection Act (“LUTPA”), LaRev. Stat. Ann. § 51:1401, et. seq., and 42 U.S.C. §§ 1988 and 1985. The defendants removed the case to federal court on June 4, 2003.

In September of 2003, Knatt resigned his medical privileges to practice at Lane. Shortly thereafter, Lane recruited Dr. Brian Kozar, a Caucasian male, to replace Knatt. And, at the end of 2003, Lane decided it would no longer lease the office space to Knatt. By certified letter dated November 19, 2003, Randall Olson, Lane’s new CEO, notified Knatt that Lane would no longer continue to lease the office space to him. Olson claimed that Knatt was continuing to lease the space on a month-to-month basis pursuant to the terms of the 1998 lease, writing that “[i]n accordance with your [1998] lease, ... this notice will serve as our sixty (60) day written notice to exercise our option to terminate this lease on January 31, 2004.” The letter was returned to Olson as undeliverable and resent on December 9, 2003.

On January 23, 2004, Knatt’s attorney responded by letter, asserting that Lane and Knatt had entered into a new lease, the 2002 lease. A copy of the 2002 lease was attached that bore both Whittington’s and Knatt’s signature; however, Knatt’s signature was undated. Knatt’s attorney also claimed in his response that the 2002 lease was still effective because Knatt hand delivered written notice to Whittington, on April 17, 2003, indicating that he was exercising an option to renew. A copy of this letter was also attached. Finally, Knatt’s attorney concluded by stating, “I would appreciate your written acknowledgment that Dr. Knatt will not be evicted, nor will any attempt be made to evict Dr. Knatt on or after February 1, [2005]----”

On February 4, 2004, Olson replied to Knatt’s request by assuring him that “Lane ... has not taken any action to evict Dr. Knatt from the medical office space he leases from [Lane].” On the other hand, Olson disputed Knatt’s claim that the 2002 lease was effective. He stated: “[e]ven though Dr. Knatt may have signed this lease ..., copies were never received in the Administrative Office. We also have no record of Dr. Knatt’s letter of April 17, 2003, exercising an option to extend the lease.” Olson further stated that the amount that would have been due under the 2002 lease was more than Knatt had paid. Specifically, if Knatt had been paying the base amount owed under the 2002 lease plus the additional cost of the separate services, Knatt would have owed an additional $6,774.15. Olson suggested that “[i]f there is any desire to work toward a solution on this issue, Dr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
289 F. App'x 22, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knatt-v-hospital-service-district-no-1-of-east-baton-rouge-parish-ca5-2008.