Mir v. Charter Suburban Hospital

27 Cal. App. 4th 1471, 33 Cal. Rptr. 2d 243, 94 Cal. Daily Op. Serv. 6767, 94 Daily Journal DAR 12481, 1994 Cal. App. LEXIS 890
CourtCalifornia Court of Appeal
DecidedAugust 31, 1994
DocketB066660
StatusPublished
Cited by22 cases

This text of 27 Cal. App. 4th 1471 (Mir v. Charter Suburban Hospital) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mir v. Charter Suburban Hospital, 27 Cal. App. 4th 1471, 33 Cal. Rptr. 2d 243, 94 Cal. Daily Op. Serv. 6767, 94 Daily Journal DAR 12481, 1994 Cal. App. LEXIS 890 (Cal. Ct. App. 1994).

Opinions

[1475]*1475Opinion

KLEIN, P. J.

Defendant and appellant Charter Suburban Hospital (Hospital) appeals a postjudgment order awarding plaintiff and respondent Jehan Zeb Mir, M.D. (Mir) $45,205 in attorney fees under Business and Professions Code section 809.9.1

The essential issue presented in this case of first impression is whether a physician who succeeds on mandamus (Code Civ. Proc. § 1094.5) in overturning a disciplinary action by a hospital on the grounds of insufficient evidence is necessarily entitled to recover costs, including attorney fees, under section 809.9.2- 3

Merely because the trial court on mandamus found no substantial evidence to support the Hospital’s disciplinary decision and the appellate court affirmed does not establish the Hospital’s defense to the petition for writ of mandate or its appeal thereafter was frivolous, unreasonable, without foundation, or in bad faith, which conduct is a prerequisite to recovery under section 809.9. The order therefore is reversed with directions.

[1476]*1476Factual and Procedural Background

1. The peer review proceedings.

Mir is a physician licensed to practice medicine in California and is a Board-certified cardiovascular and thoracic surgeon. He became a member of the medical staff of the Hospital, and in 1986 was given full privileges in cardiovascular and thoracic surgery and in general surgery.

On June 10, 1988, the hospital’s medical executive committee filed a statement of charges against Mir and recommended his hospital privileges be terminated. Thereafter, three physician committee members of the Hospital’s judicial review committee heard evidence, including the testimony of an independent expert, concerning the charges against Mir. In December 1988, the judicial review committee rendered its findings and decision, found against Mir only on one of the charges involving a particular patient, and recommended Mir be placed on probation for his next ten major abdominal or thoracic surgeries and his next six endoscopies performed at the Hospital.

Mir petitioned the Hospital’s board of directors (Board) for review of the findings and decision of the judicial review committee.

On April 6, 1989, Mir was served with notice the Board had reviewed his case and upheld the recommendations of the judicial review committee. The Board found the Hospital’s bylaws had been complied with regarding the bringing and hearing of charges against Mir so that fair procedure was had. The Board further found the judicial review committee’s recommendations were not arbitrary, capricious, or unreasonable because they were supported by substantial evidence in light of the whole record. The decision of the Board was final and effective immediately. The discipline recommended by the judicial review committee was imposed on Mir and an “805 report” was filed with the appropriate state agency.

2. Mir’s petition for writ of administrative mandate.

Thereafter, Mir filed a petition for administrative mandamus relief. (Code Civ. Proc., § 1094.5.) Mir contended the Hospital had not applied its own standards for corrective action. He further averred there was no substantial evidence to support the corrective action taken against him and the findings made by the judicial review committee. Mir prayed for a writ ordering the Hospital to vacate its disciplinary decision against him and to restore his full staff privileges.

After a hearing on the petition, the trial court took the matter under submission and on January 10,1990, issued its ruling. The trial court granted [1477]*1477the writ, finding “there [was] no substantial evidence that anyone could have done any better . . . than [Mir],” and the determination of poor medical judgment could not stand.

3. The Hospital’s appeal.

The Hospital appealed. Using the “substantial evidence in the light of the whole record” test required by Code of Civil Procedure section 1094.5, subdivision (d), the same standard required of the trial court, Division Two of this court affirmed in an unpublished decision. (Mir v. Charter Suburban Hospital (Oct. 22, 1991) B049830 [nonpub. opn.].)

The Supreme Court denied review.

4. Mir’s subsequent motion under section 809.9.

Following the resolution of the appeal, Mir filed a motion in the trial court for an order awarding attorney fees under section 809.9. Relying on the trial court’s finding of a lack of substantial evidence and the appellate court’s affirmance, Mir contended the Hospital’s conduct in disciplining him and later in defending that discipline was unreasonable and without foundation.

The trial court granted the motion, ruling the Hospital opposed mandamus “unreasonabl[y] and without foundation,” and ordered the Hospital to pay Mir’s attorney fees in the amount of $45,205.

The Hospital appeals that order.

Contentions

The Hospital contends: (1) section 809.9 did not take effect until after the Hospital’s decision became final and the trial court erred in applying it retroactively; (2) section 809.9 does not apply because Mir cannot properly be considered a “substantially prevailing party” in that he did not seek, nor did he obtain, damages, permanent injunctive relief or declaratory relief; (3) merely because the adverse disciplinary action was overturned does not establish the Hospital’s decision to defend the section 1094.5 proceeding was frivolous, unreasonable, without foundation or in bad faith; and (4) affirmance of the trial court’s order awarding Mir attorney fees would impair the ability of hospital medical staffs to protect patients through the peer review process.

[1478]*1478Discussion

1. The retroactivity issue.

a. General principles.

Several rules regarding the application of newly enacted legislation are at issue here. First, a new statute is not to be given retroactive application unless it clearly appears the Legislature so intended. (Aetna Cas. & Surety Co. v. Ind. Acc. Com. (1947) 30 Cal.2d 388, 393 [182 P.2d 159].) Second, whether a particular cost, including attorney fees, is allowed to a litigant depends on the terms of the statute which is in force at the time the judgment is rendered, not on law which existed when the suit was commenced. (Hogan v. Ingold (1952) 38 Cal.2d 802, 814-815 [243 P.2d 1, 32 A.L.R.2d 834]; Stockton Theatres, Inc. v. Palermo (1956) 47 Cal.2d 469, 477 [304 P.2d 7].) However, this second rule does not govern if a provision in the new legislation clearly indicates the Legislature’s intent such costs will not be recoverable in actions pending when the new statute becomes operative. (Hogan v. Ingold, supra, 38 Cal.2d at p.

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Bluebook (online)
27 Cal. App. 4th 1471, 33 Cal. Rptr. 2d 243, 94 Cal. Daily Op. Serv. 6767, 94 Daily Journal DAR 12481, 1994 Cal. App. LEXIS 890, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mir-v-charter-suburban-hospital-calctapp-1994.