Marion Hospital Corp. v. Sterling Emergency Services of Illinois, Inc.

913 N.E.2d 140, 392 Ill. App. 3d 1113, 332 Ill. Dec. 545, 2009 Ill. App. LEXIS 704
CourtAppellate Court of Illinois
DecidedJuly 23, 2009
Docket5-07-0703
StatusPublished
Cited by2 cases

This text of 913 N.E.2d 140 (Marion Hospital Corp. v. Sterling Emergency Services of Illinois, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marion Hospital Corp. v. Sterling Emergency Services of Illinois, Inc., 913 N.E.2d 140, 392 Ill. App. 3d 1113, 332 Ill. Dec. 545, 2009 Ill. App. LEXIS 704 (Ill. Ct. App. 2009).

Opinion

JUSTICE GOLDENHERSH

delivered the opinion of the court:

The plaintiff filed a complaint against the defendant in the circuit court of Madison County requesting reimbursement for sums paid in the settlement of a separate suit filed in the circuit court of Williamson County. On the motion of the defendant, the circuit court dismissed the complaint. On appeal, the issue is whether the plaintiffs claim is barred by the Joint Tortfeasor Contribution Act (Contribution Act) (740 ILCS 100/0.01 et seq. (West 2006)). We reverse and remand.

FACTS

On March 1, 1999, Marion Memorial Hospital and ECS of Illinois, Inc. (ECS), entered into an “Emergency Services Agreement” (Agreement). Under the Agreement, ECS became the sole and exclusive provider of emergency medical services through independent contractor physicians at Marion Memorial Hospital. The Agreement contained the following relevant provisions:

“SECTION 9. INDEPENDENT CONTRACTOR Contractor and its Physician Associates, contractors, or agents perform the services and duties required hereunder as independent contractors and not as employees, agents, [or] partners of or joint venturers with Hospital. ECS shall provide each of its Physician Associates with a name badge identifying their affiliation with ECS.
SECTION 10. INSURANCE AND INDEMNIFICATION
Contractor and Physician Associates will maintain medical malpractice insurance in the minimum amount of $1,000,000 for each medical claim and $3,000,000 annually for the aggregate of all claims. Upon request, Contractor will provide the Hospital with a Certificate(s) of Insurance as evidence that this coverage has been obtained. In addition, such policy will provide for at least fifteen (15) days’ written notice to Hospital before any material alteration, cancellation!,] or nonrenewal is to take effect.
In the event Contractor fails to obtain or maintain the insurance required hereunder, Hospital!,] at its option, may immediately terminate this Agreement. The ninety (90) day written notice will be waived in such an event.
Contractor hereby indemnifies and hold [sic] Hospital harmless from and against any and all liability, losses, damages, claims!,] or causes or [sic] action and expenses connected therewith (including reasonable attorneys’ fees) caused, or asserted to have been caused, directly or indirectly, by or as a result of negligent acts during the performance of Contractor’s duties hereunder or those of its agents, employees, servants, officers!,] or assigns.
Nothing in this Section shall relieve the Hospital from liability proximately caused by the employees of the Hospital in the normal course of their duties. Upon termination of this Agreement for any reason whatsoever, Contractor agrees that it will purchase an extended reporting endorsement (‘tail’) coverage for a period of not less than three (3) years from the final dates of service hereunder.”

On July 26, 2002, the parties amended the contractual terms for termination with cause.

Marion Memorial Hospital later became known as Marion Hospital Corp., doing business as Heartland Regional Medical Center. Marion Hospital Corp. alleges that Sterling Emergency Services of Illinois, Inc., doing business as Sterling Healthcare (Sterling), purchased the assets of ECS pursuant to bankruptcy proceedings in February 2004.

In June 2003, Tony Maze filed suit in the circuit court of Williamson County. Maze named as defendants Jenice Clark, a licensed physician assistant, and Heartland Regional Medical Center, a subsidiary of Marion Hospital Corp. of Brentwood, Tennessee (Marion Hospital).

Counts IV and V were directed against Marion Hospital. In count I\( Maze alleged that on February 13, 2003, the decedent went to Marion Hospital’s emergency room complaining of shortness of breath. In the emergency room, the decedent was treated by Clark. After his discharge, the decedent collapsed at home and died. Maze alleged that Clark negligently failed to properly test or diagnose the decedent or consult with the attending emergency room physician. Count IV alleged that Clark was an apparent employee or agent of Marion Hospital and that the decedent acted in a manner of trust and reliance on Clark’s apparent status as an agent of Marion Hospital.

Count V alleged direct negligence on the part of Marion Hospital, stating that Marion Hospital failed to note vital signs, failed to communicate accurate discharge vital signs, and failed to orient Clark to proper protocol.

On April 18, 2006, Maze and Marion Hospital submitted a “Full and Final Release of Marion Hospital Corporation d/b/a Heartland Regional Medical Center.” The release addressed Marion Hospital’s “liability as a result of its own direct negligence and as a result of vicarious liability as principal of the apparent agent, Jenice Clark, PA-C.” The release stated that $180,000 had been offered to Maze in full and final settlement of any and all claims against Marion Hospital for alleged direct negligence and alleged vicarious liability, but it specifically acknowledged that the release did not operate as a settlement of Maze’s direct negligence claim against Clark. The release stated as follows:

“The undersigned and Releasees specifically agree and acknowledge that one-half ½) of the above-referenced settlement amount or Ninety Thousand Dollars ($90,000.00) is attributable to and paid in settlement of [Maze’s] direct negligence claim against [Marion Hospital] and one-half (½) of the above-referenced settlement amount or Ninety Thousand Dollars ($90,000.00) is attributable to and paid in settlement of [Maze’s] vicarious liability/agency claim against [Marion Hospital]. The undersigned and [Marion Hospital] further agree and acknowledge that [Marion Hospital’s] payment of the Ninety Thousand Dollars ($90,000.00) attributable to the vicarious liability/agency claim arose as a result of the alleged negligent acts or omissions of Jenice Clark, PA-C[,] as agent and employee of ECS of Illinois, Inc.
The undersigned and Releasees do hereby declare that the terms of this settlement are a result of bargaining at arms length in good faith and that this settlement was entered into pursuant to and in satisfaction of Illinois’ [sic] ‘Contribution Among Joint Tortfeasors Act [sic].’ ”

On May 8, 2006, the circuit court held a hearing on the joint motion for a finding of a good-faith settlement, and it approved the settlement as being in good faith pursuant to the Contribution Act.

On July 6, 2006, Maze entered into an agreement to release and discharge Clark, Emergency Care Specialists, PhyAmerica Physicians Groups, Inc., and Western Litigation Specialists, Inc., for the sum of $120,000.

On January 31, 2007, Marion Hospital filed suit against Sterling in the circuit court of Madison County.

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913 N.E.2d 140, 392 Ill. App. 3d 1113, 332 Ill. Dec. 545, 2009 Ill. App. LEXIS 704, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marion-hospital-corp-v-sterling-emergency-services-of-illinois-inc-illappct-2009.