Memorial Hospital of Converse County - Advanced Medicine, Hometown Care and Jonathan L. Grosdidier, M.D. F.A.C.S. v. Laney Gates

CourtWyoming Supreme Court
DecidedApril 22, 2026
DocketS-25-0159
StatusPublished

This text of Memorial Hospital of Converse County - Advanced Medicine, Hometown Care and Jonathan L. Grosdidier, M.D. F.A.C.S. v. Laney Gates (Memorial Hospital of Converse County - Advanced Medicine, Hometown Care and Jonathan L. Grosdidier, M.D. F.A.C.S. v. Laney Gates) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Memorial Hospital of Converse County - Advanced Medicine, Hometown Care and Jonathan L. Grosdidier, M.D. F.A.C.S. v. Laney Gates, (Wyo. 2026).

Opinion

THE SUPREME COURT, STATE OF WYOMING

2026 WY 45

APRIL TERM, A.D. 2026

April 22, 2026

MEMORIAL HOSPITAL OF CONVERSE COUNTY - ADVANCED MEDICINE, HOMETOWN CARE and JONATHAN L. GROSDIDIER, M.D. F.A.C.S.,

Appellants (Defendants), S-25-0159

v.

LANEY GATES,

Appellee (Plaintiff).

Appellant (Plaintiff),

MEMORIAL HOSPITAL OF S-25-0160 CONVERSE COUNTY - ADVANCED MEDICINE, HOMETOWN CARE and JONATHAN L. GROSDIDIER, M.D. F.A.C.S.,

Appellees (Defendants). Appeal from the District Court of Converse County The Honorable F. Scott Peasley, Judge

Representing Memorial Hospital of Converse County-Advance Medicine, Hometown Care: Billie L. Addleman and Christine L. Jordan of Hirst Applegate, LLP, Cheyenne, Wyoming. Argument by Ms. Jordan.

Representing Johnathan Grosdidier, M.D., F.A.C.S.: Scott E. Ortiz and Zara S. Mason of Williams, Porter, Day & Neville, P.C., Casper, Wyoming. Argument by Ms. Mason.

Representing Laney Gates: C. John Cotton of Cotton Law Office, PC, Gillette, Wyoming. Argument by Mr. Cotton.

Before BOOMGAARDEN, C.J., and GRAY, FENN, and HILL, JJ., and COOLEY, DJ.

NOTICE: This opinion is subject to formal revision before publication in Pacific Reporter Third. Readers are requested to notify the Clerk of the Supreme Court, Supreme Court Building, Cheyenne, Wyoming 82002, of any typographical or other formal errors so that correction may be made before final publication in the permanent volume. FENN, Justice.

[¶1] Laney Gates suffered complications following a routine appendectomy at Memorial Hospital of Converse County (Hospital), which left her suffering from short bowel syndrome. She filed a complaint pursuant to the Wyoming Governmental Claims Act, Wyoming Statutes §§ 1-39-101 through 1-39-120 (2021) (the Act), alleging medical malpractice against the Hospital and two physicians employed by the Hospital. After a trial, the jury returned a $3.2 million verdict against one of the physicians. Under the Act, the Hospital is vicariously liable for the physician’s conduct and damages, however, the Act’s waiver of governmental immunity limited the Hospital’s liability to $1 million. Despite this statutory limitation, the district court entered judgment against the Hospital and physician for the full amount of the verdict. The Hospital and physician appealed, arguing the district court erred by failing to limit the judgment to the amount permitted under the Act. Ms. Gates filed a cross-appeal, contending the Act’s limitation does not apply because the Hospital operates a statewide commercial healthcare enterprise. We reverse the district court’s judgment and find the Hospital’s liability is limited to $1 million.

ISSUES

[¶2] There are two issues on appeal which we restate as follows:

I. Did Memorial Hospital of Converse County waive its governmental immunity beyond the statutory limitation by operating a statewide commercial healthcare enterprise?

II. Did the district court err by entering judgment in an amount greater than the $1 million limitation on the waiver of governmental immunity under the Act?

FACTS

[¶3] Laney Gates was admitted to Memorial Hospital of Converse County (Hospital) on October 6, 2019, for a routine appendectomy that “devolved into an untreated intestinal volvulus and mesenteric/intestinal ischemia.” Jonathan Grosdidier, M.D., F.A.C.S., an employee of the Hospital, performed the routine appendectomy at approximately noon on the day of admission. The following day, Ms. Gates experienced an onset of severe abdominal pain and was transferred to the Children’s Hospital of Colorado via an air ambulance. Ms. Gates underwent emergency surgery, where doctors removed approximately 120 cm of her small intestine, including her ileocecal valve, which left her suffering from short bowel syndrome.

1 [¶4] On September 3, 2021, Ms. Gates filed a complaint1 alleging medical malpractice against the Hospital and two of its physicians. The two hospital-employed physicians were Dr. Grosdidier, who performed the appendectomy, and Dennis Yutani, M.D., who read a computer tomography scan. In its answer, the Hospital admitted Dr. Grosdidier and Dr. Yutani were its employees, and the Hospital was vicariously liable for their negligence while acting within the scope of their duties. As an affirmative defense, the Hospital asserted Ms. Gates’s damages may be subject to the limitation on the waiver of governmental immunity under the Act. Ms. Gates moved for partial summary judgment, arguing the limitation under Wyoming Statute § 1-39-110(b) was unconstitutional because Article 10, § 4(a) of the Wyoming Constitution expressly precludes any law “limiting the amount of damages to be recovered for causing the injury or death of any person.” Ms. Gates further argued that, although the Hospital had represented its insurance coverage was limited to $1 million, its chief executive officer (CEO) publicly reported in the media the Hospital earned $20 million in gross revenues and $3 million in net revenues. She contended, given this revenue, the limitation under the Act was “absurd.”

[¶5] Following a pre-trial hearing on November 19, 2024, the district court found the liability limitation under Wyoming Statute § 1-39-110(b) was a “limitation[] on the waiver of governmental immunity” and not a limitation on the recoverable damages, and therefore, the Act was not unconstitutional.2 The district court acknowledged the Act applied to the underlying complaint and denied Ms. Gates’s motion for partial summary judgment.

[¶6] A jury trial commenced on March 31, 2025, and the jury returned its verdict on April 10, 2025. The jury awarded $8 million in total damages and apportioned fault as follows: 40% to Dr. Grosdidier, 0% to Dr. Yutani, and 30% each to two physicians from Children’s Hospital of Colorado, who were not parties to the lawsuit. Before judgment was entered, Ms. Gates filed what she labeled as a renewed motion for partial summary judgment, again arguing the limitation under the Act violated the Wyoming Constitution. In that motion, Ms. Gates also raised new arguments, including asserting the Hospital had relinquished any claim to immunity under the Act by operating a statewide commercial healthcare enterprise. On the same day she filed her renewed motion, Ms. Gates also filed a motion requesting the district court delay formal entry of judgment pending resolution of the issues raised in her renewed motion.

1 Ms. Gates’s parents commenced the underlying lawsuit on her behalf as her parents, conservators, guardians, and next friends because she was a minor at the time. During the pendency of the action, however, Ms. Gates reached the age of majority, and the district court substituted her as the plaintiff. 2 In Bain v. City of Cheyenne, we considered whether the limitation under Wyoming Statute § 1-39-118(a)(i) violates Article 10, § 4(a) of the Wyoming Constitution. 2025 WY 67, ¶ 2, 570 P.3d 725, 727 (Wyo. 2025). We found the statute does not violate Article 10, § 4(a) because the statute is not a limitation on recoverable damages, but instead it limits the scope of the waiver of governmental immunity under the Act. Id. at ¶¶ 23– 24, 570 P.3d at 731.

2 [¶7] The Hospital and Dr. Grosdidier (collectively referred to as MHCC throughout the rest of the opinion)3 jointly objected and requested the district court enter judgment for $1 million, which they asserted was the limit of the waiver of immunity under the Act. Ms. Gates replied, asking the district court to enter judgment for the full $3.2 million jury award against MHCC, and to determine whether MHCC was barred from claiming immunity under the Act because the Hospital operates a statewide commercial healthcare enterprise. On May 9, 2025, the district court entered judgment against MHCC in the amount of $3.2 million.

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Memorial Hospital of Converse County - Advanced Medicine, Hometown Care and Jonathan L. Grosdidier, M.D. F.A.C.S. v. Laney Gates, Counsel Stack Legal Research, https://law.counselstack.com/opinion/memorial-hospital-of-converse-county-advanced-medicine-hometown-care-and-wyo-2026.