Owen & Galloway, LLC v. Smart Corp.

913 So. 2d 174, 2005 WL 674809
CourtMississippi Supreme Court
DecidedMarch 24, 2005
Docket2004-CA-00277-SCT
StatusPublished
Cited by2 cases

This text of 913 So. 2d 174 (Owen & Galloway, LLC v. Smart Corp.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Owen & Galloway, LLC v. Smart Corp., 913 So. 2d 174, 2005 WL 674809 (Mich. 2005).

Opinion

913 So.2d 174 (2005)

OWEN & GALLOWAY, L.L.C.
v.
SMART CORPORATION, Gulf Coast Community Hospital, Inc. and Hancock Medical Center.

No. 2004-CA-00277-SCT.

Supreme Court of Mississippi.

March 24, 2005.

Charles Otis Lee, Joe Sam Owen, Gulfport, attorneys for appellant.

Michael B. Wallace, Jackson, Richard B. Tubertini, Gulfport, Holly Trudell, Henry John Gutierrez, Beth Levine Orlansky, William H. Leech, Jackson, Ronald J. Artigues, Jr., Gulfport, Jeanne Williams Baxter, attorneys for appellees.

Before SMITH, C.J., EASLEY and GRAVES, JJ.

EASLEY, Justice, for the Court.

¶ 1. The issue of standing is dispositive in the case before the Court today. Pursuant *175 to M.R.C.P. 17(a) and other rationale expressed in this opinion, the plaintiff, Owen & Galloway, L.L.C., lacked standing to file this lawsuit. Accordingly, the trial court's grant of summary judgment in favor of the three defendants, Smart Corporation (Smart), Gulf Coast Community Hospital, Inc. (GCCH), and Hancock Medical Center (HMC), collectively known as the "Defendants," on the issue of standing is affirmed.

PROCEDURAL HISTORY

¶ 2. Owen & Galloway, LLC, filed a lawsuit against defendants Smart Corporation, Gulf Coast Community Hospital, Inc., and Hancock Medical Center[1] alleging that they violated Mississippi anti-trust statutes, Miss.Code Ann. §§ 75-21-1 and 75-21-3, that excessive and inconsistent fees were charged by Smart with knowledge of the other two defendants which constitutes fraud, and that the contract between Smart Corporation and Hancock Medical Center violated public policy.

¶ 3. Owen & Galloway sought a declaratory judgment, injunctive relief, attorney's fees, costs, actual damages in the amount of $10 million, and punitive damages in the amount of $15 million. All the Defendants answered the complaint and filed various motions to dismiss, motions for summary judgment, supplemental motions for summary judgment, and alternative motions for summary judgment. Owen & Galloway responded by filing a cross-motion for summary judgment.

¶ 4. The trial court entered an order and judgment granting the motions for summary judgment for all three defendants and denying the Owen & Galloway's cross-motion for summary judgment. The trial court found that since "as a matter of law, [Owen & Galloway] had no independent right to purchase medical records of its clients[.]" Owen & Galloway was not the real party in interest and thus lacked standing to bring this suit. While the trial court stated that the lack of standing was enough to dismiss the action altogether, the trial court nevertheless analyzed the Owen & Galloway's three claims and found that Owen & Galloway failed to present sufficient evidence to proceed on any of the three claims.

¶ 5. Following the trial court ruling, Owen & Galloway filed its notice of appeal.

FACTS

¶ 6. The plaintiff, Owen & Galloway, is a law firm engaged in the practice of law in Gulfport, Mississippi. Two defendants, Gulf Coast Community Hospital, Inc. and Hancock Medical Center, are hospitals from whom Owen & Galloway requested medical records on behalf of its clients, both actual and potential. The third defendant, Smart Corporation, is the corporation that contracted with the hospitals to provide medical record copying services.

¶ 7. Each hospital contracted, independent of one another, with Smart Corporation to handle all requests for copies of patient medical records. Smart Corporation was responsible for the billing of its medical record copying services. Smart Corporation's charges to Owen & Galloway for copying patient medical records ranged from $0-20 dollars for a basic service fee, $0-1.50 for per page copy charges, $0-10 dollars for a retrieval fee, and shipping and handling charges that do not reflect actual postage associated with delivery. Because of these variations in charges, Owen & Galloway filed this lawsuit alleging:

*176 1) that all three Defendants violated Mississippi anti-trust statutes (Miss. Code Ann. § 75-21-1 and 75-21-3),
2) that excessive and inconsistent fees were charged by Smart with knowledge of the other two defendants which constitutes fraud, and
3) that the contract between Smart Corporation and Hancock Medical Center violates public policy.

¶ 8. The trial court granted each Defendants motion for summary judgment to dismiss. Following the trial court ruling, Owen & Galloway appealed to this Court raising the following issues:

I. Whether the trial court erred in finding that Owen & Galloway did not have standing to assert the claims presented in the complaint.
II. Whether the trial court's decision to grant summary judgment in favor of the Defendants was improper.

DISCUSSION

¶ 9. This Court reviews motions for summary judgment de novo. Brooks v. Roberts, 882 So.2d 229, 231-32 (Miss.2004) (citing Bowie v. Montfort Jones Mem'l Hosp., 861 So.2d 1037, 1040 (Miss.2003)). All evidence is to be viewed in the light most favorable to the nonmoving party. Id. at 232. The decision of the trial court will only be reversed if "there are indeed triable issues of fact." Id.

Standing.

¶ 10. We find that the issue of standing is dispositive of the case. Therefore, the other issues briefed by the parties will not be addressed by this Court.

¶ 11. The trial court granted the motion for summary judgment for the three Defendants and denied Owen & Galloway's cross-motion for summary judgment. The trial court acknowledged all the arguments by the parties and discussed each issue in his opinion. However, the trial court determined that the issue of standing alone was enough to grant dismissal in favor of the Defendants. The trial court ruled:

The Court finds persuasive the Defendants' argument that [Owen & Galloway] lacks standing to assert the claims presented. As a matter of law, O & G had no independent right to purchase medical records of this clients; its only right to purchase such records was in its capacity as agent for those clients. See, Restatement (Second) of Agency §§ 320 and 292, see also Pratt v. Smart Corp., 968 S.W.2d 868, 873 (Tenn.App.1998)(finding that an attorney obtaining records from Smart acted on behalf of the client as disclosed principal and was not a party to the transaction). Thus, the real party (or parties) in interest in this case are the patient/clients, not [Owen & Galloway]. See, Miss. R. Civ. P. 17(a); Jeffery Jackson, 1 Mississippi Civil Procedure, § 6.2 (West 2001). The Court is of the opinion that [Owen & Galloway's] lack of standing, alone, is sufficient to warrant dismissal of this action, but there is additional support for alternatively granting summary judgment.

(emphasis added).

¶ 12. By statute, hospitals are required to provide reasonable access to hospital records "upon payment of any reasonable charge for such service." Miss.Code Ann. § 41-9-65. Violation of this statute results in no civil liability to "hospital, its officers, employees ...

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Bluebook (online)
913 So. 2d 174, 2005 WL 674809, Counsel Stack Legal Research, https://law.counselstack.com/opinion/owen-galloway-llc-v-smart-corp-miss-2005.