Rotwein v. Sunharbor Manor Residential Health Care Facility

181 Misc. 2d 847, 695 N.Y.S.2d 477, 1999 N.Y. Misc. LEXIS 333
CourtNew York Supreme Court
DecidedJuly 15, 1999
StatusPublished
Cited by10 cases

This text of 181 Misc. 2d 847 (Rotwein v. Sunharbor Manor Residential Health Care Facility) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rotwein v. Sunharbor Manor Residential Health Care Facility, 181 Misc. 2d 847, 695 N.Y.S.2d 477, 1999 N.Y. Misc. LEXIS 333 (N.Y. Super. Ct. 1999).

Opinion

OPINION OF THE COURT

Jerald S. Carter, J.

In an action for relief pursuant to section 740 of the Labor Law and to recover damages for alleged breach of contract and defamation, defendants move for summary judgment dismissing the complaint and for an order imposing sanctions and awarding attorney’s fees, and plaintiff moves for leave to serve an amended complaint.

Plaintiff was an attending podiatrist at defendant Sunharbor Manor Residential Health Care Facility (Sunharbor). He was never remunerated in any manner by Sunharbor but billed the residents for his services directly. Although plaintiff claims that there was a written employment agreement, he fails to produce one, and his claim that further disclosure may produce the written employment agreement is nothing more than speculation.

Plaintiff’s privileges at Sunharbor were terminated in February 1996 on the grounds that he improperly billed the families of residents for services rendered to residents covered by Medicare; that he failed to abide by the protocols of Sunharbor regarding the prevention of the spread of infection; that he improperly refused to provide treatment for nonpayment of past services or because he would be receiving only nominal payment; that he had failed to timely record his notes of treatment in the residents’ records; that he had behaved inappropriately in interacting with residents; that he had treated a resident without the prior written consent of a relative of the resident in contravention of a written release; and that he inaccurately described the mental state of residents in their records. These grounds for termination were considered on a cumulative basis by Sunharbor, having developed over the course of several years. Prior to termination, plaintiffs privileges were first suspended and his resignation was requested. Sunharbor also scheduled a meeting with plaintiff for February 14, 1996. On February 13, 1996, however, plaintiff canceled the meeting on advice of counsel. Sunharbor then advised plaintiff in writing that unless his resignation was received by the end of February, his privileges would be terminated. In March 1996, plaintiff entered Sunharbor to treat certain residents. He was advised that his privileges had been [850]*850terminated. He then orally requested a hearing and was instructed to place such request in writing. Plaintiff requested a hearing in writing on March 13, 1996. A hearing was never held.

After termination by Sunharbor, plaintiff applied for privileges at Hempstead General Hospital Medical Center (Hempstead General). Hempstead General, in considering plaintiff’s application, made a written request of Sunharbor for information pursuant to Public Health Law § 2805-k.1 Specifically, Hempstead General inquired whether plaintiff’s privileges had ever been suspended or terminated. Sunharbor responded: “ [privileges have been suspended/terminated due to several and varied reasons”. Hempstead General then requested the details of plaintiff’s suspension/termination and included “Consent for Release of Information” executed by plaintiff. On July 1, 1996, Sunharbor responded as follows:

“As per discussion, Dr. Rotwein is in the process of having his privileges at Sunharbor Manor revoked. As I explained, we are not challenging his podiatric medicine. We had a few cases where residents and their families were not pleased with his bedside manner. We requested his resignation which he did not wish to do.
“Again, the reason for his dismissal is due to his relationship with staff, families and residents and in no way is meant as a reflection upon his podiatric medicine.”

Thereafter, plaintiff commenced this action. In his complaint, he asserts 12 causes of action falling within three groups: (1) unlawful retaliatory discharge under Labor Law § 740; (2) breach of contract (second and third causes of action); and (3) defamation (fourth through twelfth causes of action, inclusive). Defendants now move for summary judgment dismissing all causes of action, and plaintiff moves for leave to serve an amended complaint withdrawing the first cause of action, withdrawing all allegations of specific communications except with respect to residents’ complaints regarding plaintiff’s bedside manner, and adding all individual partners of Sunharbor as defendants.

The first cause of action is based on an alleged violation of section 740 of the Labor Law, commonly referred to as the Whistleblower Law (Remba v Federation Empl. & Guidance Serv., 76 NY2d 801). Insofar as may be relevant to this matter, Labor Law § 740 (2) (a) and (c) provides:

[851]*851“An employer shall not take any retaliatory personnel action against an employee because such employee does any of the following:
“(a) discloses or threatens to disclose to a supervisor or to a public body an activity, policy or practice of the employer that is in violation of law, rule or regulation which violation creates and presents a substantial and specific danger to the public health or safety * * *
“(c) objects to, or refuses to participate in any such activity, policy or practice in violation of a law, rule or regulation.” Plaintiff alleges that Sunharbor directed him to refrain from billing or attempting to collect from residents’ families, Medicare deductibles and co-payments or co-insurance, that he advised Sunharbor that such practice would be illegal, and that Sunharbor then terminated his privileges on the pretext that he had not been complying with the infection control program and that he had acted inappropriately toward residents.

At the core of any viable claim based on Labor Law § 740 is that there must have been an employer-employee relationship. In Labor Law § 740 (2), the proscription is against retaliatory action by an employer against an employee. Section 740 (1) (a) defines an employee as “an individual who performs services for and under the control and direction of an employer for wages or other remuneration.” Here, there is no evidence that Sunharbor controlled and directed the care and treatment provided by plaintiff to residents. Protocols and policy regarding appropriate behavior, infection control and billing practices do not represent control of care and treatment of residents. Further, it is undisputed that plaintiff never received any remuneration or other benefit from Sunharbor. Plaintiff billed the residents for his services directly. There is also no evidence of a written employment contract as plaintiff urges, and his contention that disclosure may yield such document is nothing more than speculation. Under these circumstances, plaintiff may not avail himself of the remedies provided by Labor Law §740.

A claim under Labor Law § 740 also must be premised on an actual violation of law, rule or regulation; a reasonable belief of a violation is not enough (see, Bordell v General Elec. Co., 88 NY2d 869). Therefore, assuming plaintiff’s allegations regarding Sunharbor’s direction regarding billing are true, i.e., that plaintiff refrain from seeking payment of deductibles or co-payments/co-insurance, such direction must constitute an [852]*852actual violation of law, rule or regulation. Plaintiff alleges that such direction violated 18 USC §§ 287 and 1001, 31 USC § 3729, 42 USC §§ 1320a-7a, 1320a-7b (b) and § 1320a-7 (b) (7).

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Bluebook (online)
181 Misc. 2d 847, 695 N.Y.S.2d 477, 1999 N.Y. Misc. LEXIS 333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rotwein-v-sunharbor-manor-residential-health-care-facility-nysupct-1999.