Morgan v. Galilean Health Enterprises, Inc.

1998 OK 130, 977 P.2d 357, 70 O.B.A.J. 59, 1998 Okla. LEXIS 140, 1998 WL 917313
CourtSupreme Court of Oklahoma
DecidedDecember 22, 1998
Docket88,957
StatusPublished
Cited by62 cases

This text of 1998 OK 130 (Morgan v. Galilean Health Enterprises, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morgan v. Galilean Health Enterprises, Inc., 1998 OK 130, 977 P.2d 357, 70 O.B.A.J. 59, 1998 Okla. LEXIS 140, 1998 WL 917313 (Okla. 1998).

Opinions

OPALA, J.

¶ 1 The issues presented on appeal are: (1) Is the plaintiff entitled to a prevailing-party counsel-fee award authorized by the provisions of the Nursing Home Care Act (the “Act”)1? and (2) if so, was there error in basing the amount of that award upon the terms of a contingent-fee contract between the plaintiff and her counsel? We answer both questions in the affirmative.

I

THE ANATOMY OF LITIGATION

¶2 Marilyn Morgan (“Morgan”), guardian of Donald Wayne Quinton (“Quinton”), brought this action against Galilean Health Enterprises, Inc., d/b/a Beggs Living Center, and John Doe, (“Galilean”), alleging that Galilean had been negligent in caring for Quinton, a mentally impaired individual, who was a resident of the Beggs Living Center. In August of 1993, Quinton suffered serious personal injuries as a result of an apparent beating. Morgan claimed that Galilean failed to prevent the abuse and neglected to secure prompt medical attention for Quinton’s injuries.

¶ 3 The court instructed the jury that, with respect to Quinton’s care, Galilean was subject to certain statutory duties imposed by the Act.2 The jury returned a general verdict for Morgan, awarding her $500,000 in compensatory and $250,000 in punitive damages. Galilean timely appealed from the judgment on jury verdict.

¶4 Morgan moved for a postjudgment award of an attorney’s fee. The trial court ruled that because “violations of the Act” were in issue at trial, Morgan was entitled to a prevailing-party counsel-fee award.3 The award was set at $437,370.50 with interest. The record as well as the text of the entered memorial of the postjudgment proceedings (on Morgan’s application for an attorney’s fee) irrefutably demonstrate that the court used the contingent-fee contract between Morgan and her attorney as the basis for computing the amount of the counsel-fee [360]*360award.4 Galilean argues that a counsel-fee award was not authorized by law; alternatively Galilean urges that, if a fee allowance was proper, the method used to calculate the amount awarded was erroneous.

¶ 5 Before this court reached Galilean’s appeal for decision, the parties settled the obligation imposed by the underlying judgment. By their stipulation, appellate review is now confined to whether plaintiff is entitled to a counsel-fee award, and if so, whether its quantum is legally correct.5 Galilean urges that the award must be reversed for the following four reasons: (1) this was a common-law negligence action in which a counsel-fee award is not authorized, (2) the trial court’s jury instruction — incorporating provisions of the Act — was given in error and cannot hence serve as a predicate for a counsel-fee award, (3) the trial court incorrectly read the Act as authorizing a counsel-fee award, and (4) if a counsel-fee award was indeed the plaintiffs due, the trial court erred in computing the award solely upon the terms of the contingent-fee contract between Morgan and her attorney.

¶ 6 We hold that (a) this action was submitted to the triers not solely as a common-law tort, but also as a breach of duties imposed by the Act, and (b) the trial court, in granting a prevailing-party counsel-fee award, erred in allowing the contingent-fee contract (between the plaintiff and her counsel) to serve as the sole basis for calculating the amount of the attorney’s fee.

II

MORGAN’S LAWSUIT WENT TO THE JURY NOT SOLELY AS A COMMON-LAW TORT, BUT ALSO AS A BREACH OF DUTIES IMPOSED BY THE ACT

¶ 7 Galilean argues that Morgan’s suit was tried as a common-law negligence action, not as a claim for breached duties imposed by the Act. It contends that the Act’s provisions that relate to an attorney’s fee award are hence unavailable to Morgan. We must disagree. In its Instruction No. 11, the court clearly charged the jury that it could consider whether Galilean had breached duties owed to Quinton under the Act.6 Whatever the theory of Morgan’s lawsuit may have been at its inception or at trial, the jury’s verdict rests upon an instruction which incorporated provisions of the Act.7 The verdict is hence to be viewed as the triers’ response to the theory submitted in that [361]*361instruction.8 By the parties’ settlement of the underlying judgment,9 we now stand barred from probing into whether the evidence adduced on behalf of the plaintiff’s cause warranted the giving of that instruction.10 In short, Morgan’s lawsuit must now be regarded as having been submitted as a claim within the purview of the Act.

Ill

THE ACT EXPLICITLY CREATES A STATUTORY TORT WITH A PRIVATE RIGHT OF ACTION

¶ 8 We turn now to whether the inclusion of Instruction No. 11 may in this case serve as authority for an attorney’s-fee award. In that instruction, the court charged that, apart from the common-law duties owed to Quinton, Galilean was also bound by certain statutory obligations. The instruction then quoted portions of three of the eighteen “rights” conferred by the Act on nursing home residents (the “Nursing Home Patients’ Bill of Rights”).11 Although it is conceded that violation of any of these rights can bring about the imposition of criminal penalties or trigger the process for administrative remedies, Galilean urges that the Act recognizes only those 'private actions that are prosecuted for injunctive or preventative relief. We disagree. The terms of 68 O.S.Supp.1992, § 1-1918(F) create what we have previously referred to as a “statutory tort,” i.e. a legislatively-crafted, non-contrae-tual duty, unknown to the common law, for the breach of which an action ex delicto will lie.12 While the language of the Act is not a model of clarity and precision, its terms are clear enough to divine a legislative intent to fashion a private right of action13 for nursing home residents (or their guardians) to redress a violation of rights conferred by the Act.14 Liability for a statutory tort is incurred when it can be shown that the plaintiffs injury resulted from a statutory viola[362]*362tion and that the plaintiff falls into a class of persons whom the legislature intended to protect.15 By giving Instruction No. 11, the trial court recognized that Quinton’s proof was sufficient to invoke his statutory right.16

¶ 9 WRG Construction v. Hoebel17 provides some guidance for gauging legislative language that creates a statutory tort. An intent to create a cause of action is shown where there are explicit references in the enactment’s text to one’s right to vindicate a breached duty.18 Subsection F of § 1-1918 of the Act is replete with references to remedies for a “violation.”19 In the context of the statute the word “violation” is unmistakably used as a synonym for the concept of “breached duty.” The so-called rights enumerated in the Act shape the standard of care to govern in the nursing home setting. An operator’s breach of any enumerated duty gives rise to a private right of action under the Act.

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Cite This Page — Counsel Stack

Bluebook (online)
1998 OK 130, 977 P.2d 357, 70 O.B.A.J. 59, 1998 Okla. LEXIS 140, 1998 WL 917313, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morgan-v-galilean-health-enterprises-inc-okla-1998.