Mosby v. American Medical International, Inc.

656 F. Supp. 601, 55 U.S.L.W. 2565
CourtDistrict Court, S.D. Texas
DecidedMarch 24, 1987
DocketCiv. A. H-82-1569
StatusPublished
Cited by5 cases

This text of 656 F. Supp. 601 (Mosby v. American Medical International, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mosby v. American Medical International, Inc., 656 F. Supp. 601, 55 U.S.L.W. 2565 (S.D. Tex. 1987).

Opinion

*604 MEMORANDUM OPINION AND ORDER

HITTNER, District Judge.

Pending before the Court is Defendants' Motion for Summary Judgment. Having considered the pleadings, motions and materials attached thereto, oral arguments and representations, and the law applicable thereto, the Court is of the opinion that Defendants’ Motion for Summary Judgment on Plaintiff’s antitrust cause of action should be and hereby is GRANTED.

FACTS

In November, 1981, Defendant Citizens General Hospital (“CGH”) entered into a “Radiology Agreement” (“Agreement”) with Defendant Radiologist Vutpakdi, in which Vutpakdi agreed to provide prompt and continuous radiology service to attending physicians at CGH. Until January, 1982, Vutpakdi used an on-call schedule of available radiologists to meet his obligation to assure full-time coverage. The Plaintiff, Dr. Mosby, was included on the on-call roster of staff radiologists to whom weekend and evening radiology service requests were referred. In January, 1982, Dr. Vutpakdi decided to hire a full-time assistant and ceased using the on-call roster. Dr. Mosby applied for, but was not offered, the position of radiology assistant under Dr. Vutpakdi. Dr. Mosby, who retained his full staff privileges at CGH and five other Houston area hospitals, continued to receive referrals and to practice with full staff privileges at CGH.

CGH has alleged, and Dr. Mosby has not denied, that it maintained an “open staff” policy at all times. According to CGH’s definition, “open staff” means that attending physicians may request the services of any staff radiologist, including Dr. Mosby, and are not required to use Dr. Vutpakdi or his assistant to interpret x-rays taken at the hospital. Under this open staff policy, Dr. Vutpakdi does not have an exclusive contract with CGH. He takes only those referrals which designate “no preference” or Dr. Vutpakdi specifically.

SUMMARY JUDGMENT MOTION

Dr. Mosby’s second amended complaint alleges that Defendants violated section 1 of the Sherman Antitrust Act, 15 U.S.C. § 1 (1982), which prohibits contracts and conspiracies in restraint of trade. Dr. Mos-by asserts that his removal from the on-call roster deprived him of referrals from the hospital emergency room, resulted in an unreasonable restraint of trade, and had a significant effect on competition. Defendants seek summary judgment on Plaintiff’s claim, and argue that no material issues of fact exist which tend to show that Defendants conspired to restrain trade, to harm the Plaintiff, or to harm competition in the relevant market.

In response to the Defendants’ Motion for Summary Judgment, Dr. Mosby insists that he has raised issues of material fact which support his allegations of antitrust violation. He asserts that the Defendants conspired to discourage competing radiologists, fix prices of radiological services, and deprive consumers of a choice of radiological services.

A Court may grant summary judgment only if “there is no genuine issue as to any material facts and ... the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). The Court need not examine the substantive issues except to determine whether a disputed fact or inference is material to an essential legal element of the case. Anderson v. Liberty Lobby, Inc., — U.S.-, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986); Matsushita Elec. Indus. Co. v. Zenith Radio Corp., — U.S. -, 106 S.Ct. 1348, 1357, 89 L.Ed.2d 538 (1986). The party seeking summary judgment bears the burden of demonstrating that there is no actual dispute as to any material fact in the case. 1 *605 Once this burden has been met, the nonmovant must set forth specific facts showing that there is a genuine issue for trial. Fed.R.Civ.P. 56(e). See Pan-Islamic Trade Corp. v. Exxon Corp., 632 F.2d 539, 565 (5th Cir.1980). If the nonmovant does not set forth specific facts in support of allegations “essential to that party’s case and on which that party will bear the burden of proof,” then the Court’s granting of the summary judgment motion is not only appropriate but also mandatory. Celotex, 106 S.Ct. at 2552-53; Fontenot v. Upjohn Co., 780 F.2d 1190, 1195-96 (5th Cir.1986).

In the past, the United States Supreme Court has found that “summary procedures should be used sparingly in complex antitrust litigation where motive and intent play leading roles.” Poller v. Columbia Broadcasting Sys., 368 U.S. 464, 483, 82 S.Ct. 486, 496, 7 L.Ed.2d 458 (1962). See also Hospital Building Co. v. Trustees of Rex Hosp., 425 U.S. 738, 746-47, 96 S.Ct. 1848, 1853, 48 L.Ed.2d 338 (1976). However, recent cases have made it clear that summary judgment for the defendant is appropriate, even in complex antitrust cases, where the plaintiff fails to establish genuine issues of material fact bearing on the legal elements of the case. Matsushita, 106 S.Ct. at 1355-62; First Nat’l Bank v. Cities Service Co., 391 U.S. 253, 290, 88 S.Ct. 1575, 1593, 20 L.Ed.2d 569 (1968). 2 See Ingram Corp. v. J. Ray McDermott & Co., 698 F.2d 1295, 1322-23 (5th Cir.1983) and authorities cited; Pan-Islamic Trade Corp. v. Exxon Corp., 632 F.2d 539, 553-554 (5th Cir.1980). For the reasons set forth below, this Court finds that movant has met its burden of proof by demonstrating that there is no dispute as to any material fact in the case. Furthermore, this Court finds that Dr. Mosby has failed to offer evidence which establishes genuine issues of fact concerning the two legal elements of his antitrust cause of action— conspiracy and restraint of trade. This Court is therefore of the opinion that Defendants’ Motion for Summary Judgment should be granted.

CLAIMS UNDER SECTION 1 OF THE SHERMAN ACT

Plaintiff asserts a cause of action under section 1 of the Sherman Act, 15 U.S.C. § 1 (1984). Plaintiff specifically contends that Defendants’ actions constitute a combination and conspiracy in restraint of trade and that Defendants conspired to discourage competing radiologists, fix prices of radiological services, and deprive consumers of a choice of radiological services.

A. Conspiracy

Under section 1 of the Sherman Act all combinations or conspiracies in restraint of trade are illegal. 15 U.S.C. § 1 (1982).

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Bluebook (online)
656 F. Supp. 601, 55 U.S.L.W. 2565, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mosby-v-american-medical-international-inc-txsd-1987.