Misischia v. St. John's Mercy Health Systems

457 F.3d 800, 24 I.E.R. Cas. (BNA) 1668, 2006 U.S. App. LEXIS 20176, 2006 WL 2253114
CourtCourt of Appeals for the Eighth Circuit
DecidedAugust 8, 2006
Docket05-3403
StatusPublished
Cited by60 cases

This text of 457 F.3d 800 (Misischia v. St. John's Mercy Health Systems) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Misischia v. St. John's Mercy Health Systems, 457 F.3d 800, 24 I.E.R. Cas. (BNA) 1668, 2006 U.S. App. LEXIS 20176, 2006 WL 2253114 (8th Cir. 2006).

Opinion

LOKEN, Chief Judge.

At the conclusion of largely unsuccessful litigation in other courts, Dr. Arthur Misischia commenced this action against his former employers, St. John’s Mercy Health Systems (St-John’s) and Dr. John Delfino, and three St. John’s supervisory employees. Misischia asserted claims under the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. §§ 1962(b)-(d), and a pendent state law conspiracy claim. The district court 1 dismissed the claims on res judicata and statute of limitation grounds. Misischia appeals. Reviewing the district court’s dismissal of the complaint de novo, we affirm. See Ballinger v. Culotta, 322 F.3d 546, 548 (8th Cir.2003) (standard of review).

I. Background

In 1993, Delfino was the director and Misischia was the associate director of the oral and maxillofacial surgery residency program at St. John’s hospital in St. Louis. Misischia also performed surgeries at St. John’s hospital as an independent contractor retained by Delfino’s professional corporation. Following reports of inappropriate patient contacts, St. John’s terminated Misischia as associate director and suspended his staff privileges in October 1993. Delfino also terminated his separate contract with Misischia. As required, St. John’s reported Misischia’s suspension to the Department of Health and Human Services National Practitioner Data Bank *803 [NPDB] in February 1994. At St. John’s request, Misischia underwent a psychiatric evaluation in March 1994 that revealed no disorder. St. John’s then ended the suspension and revised its adverse action report to the NPDB to read: “Based on the receipt of a positive [psychiatric] evaluation, the summary suspension of Dr. Arthur Misischia has been revoked effective April 25, 1994.” However, St. John’s also terminated Misischia’s employment contract and staff privileges.

In October 1994, Misischia filed a lawsuit in Missouri state court against St. John’s and Delfino, asserting various state law tort claims based on the allegation that Misischia’s suspension, termination, and the adverse NPDB report were retaliation for his efforts to “blow the whistle” on fraudulent activity by Delfino and St. John’s. The trial court held that St. John’s was immune from suit under the Health Care Quality Improvement Act, 42 U.S.C. §§ 11101 et seq., and dismissed some claims against Delfino. A jury then found in favor of Misischia and against Delfino and his professional corporation on a fraud claim. The decision was affirmed on appeal and final judgment entered in December 2000. See Misischia v. St. John’s Mercy Med. Ctr., 30 S.W.3d 848 (Mo.Ct.App.2000).

In March 2001, counsel for Misischia wrote St. John’s offering to release all claims if St. John’s would submit a revised NPDB report deleting the reference to a psychiatric evaluation. St. John’s responded, agreeing to submit the revised report if Misischia also agreed not to serve as a retained expert in lawsuits against St. John’s and to pay an amount in satisfaction of St. John’s pending motion for costs in the state court action. Protracted, unsuccessful negotiations ensued. In this action, Misischia alleges that defendants sought to discredit him by submitting an inaccurate NPDB report in 1994 and then refused to correct the inaccuracies in 2001 unless he acceded to their “extortionate” demands.

In March 2002, with negotiations at a standstill, Misischia filed a “subject statement” with the Department of Health and Human Services objecting to the content and accuracy of St. John’s revised NPDB report. The agency concluded that the phrase “positive evaluation” in St. John’s revised report could be misinterpreted as implying that Misischia suffers from a psychiatric disorder. Accordingly, St. John’s amended the report to read: “Based on the receipt of an evaluation that found that Dr. Arthur Misischia was not suffering from any type of psychiatric disorder, the summary suspension of Dr. Arthur Misisc-hia has been revoked effective April 25, 1994.” However, the agency rejected Mi-sischia’s demand to delete all reference to a psychiatric evaluation. Misischia sued the agency alleging a violation of the Privacy Act, 5 U.S.C. § 552a. The District of Columbia District Court dismissed the suit as time-barred, concluding that the Privacy Act’s two-year statute of limitations began to run when St. John’s revised the NPDB report in May 1994. Doe v. Thompson, 332 F.Supp.2d 124 (D.D.C.2004).

Ten days later, Misischia filed this lawsuit. His lengthy amended complaint first describes every aspect of the parties’ dispute from 1993 to 2003 and then alleges “various adverse professional incidents” involving other physicians with privileges at St. John’s hospital. The amended complaint alleges that defendants collectively constituted an “enterprise,” that their wrongful actions constituted a “pattern of racketeering activity,” and that the mailings and interstate wire communication cited in the complaint were “predicate acts” under RICO. In addition to three *804 RICO counts, Misischia asserts a state law civil conspiracy claim. The remedies sought include an order declaring that defendants “improperly and without justification” compelled Misischia to undergo a psychiatric examination, submitted an adverse report to the NPDB, terminated his employment and staff privileges, and damaged his reputation in order to taint his testimony as an adverse expert witness in lawsuits against the hospital.

II. Res Judicata

The district court held that the doctrine of res judicata or claim preclusion bars Misischia’s RICO and civil conspiracy claims because he could have raised those claims in his October 1994 state court suit. Though RICO is a federal statute, the preclusive effect of this prior state court judgment is governed by the law of Missouri, the State in which the judgment was rendered. See Marrese v. Am. Acad. of Orthopaedic Surgeons, 470 U.S. 373, 380, 105 S.Ct. 1327, 84 L.Ed.2d 274 (1985).

Under Missouri law, a prior judgment bars a subsequent claim arising out of the same group of operative facts “even though additional or different evidence or legal theories might be advanced to support” the subsequent claim. Chesterfield Village v. City of Chesterfield, 64 S.W.3d 315, 320 (Mo. banc 2002) (quotation omitted). The doctrine of claim preclusion bars not only the claims asserted in the first action but also claims “which the parties, exercising reasonable diligence, might have brought forward at the time.” Id. at 318 (quotation omitted); see McNeill v. Franke,

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457 F.3d 800, 24 I.E.R. Cas. (BNA) 1668, 2006 U.S. App. LEXIS 20176, 2006 WL 2253114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/misischia-v-st-johns-mercy-health-systems-ca8-2006.