Ruiz v. Oniate

713 So. 2d 442
Supreme Court of Louisiana·Decided May 19, 1998·No. 97-C-2412·Published·Cited by 41 cases

Opinion

713 So.2d 442 (1998)

Ronald S. RUIZ
v.
Frank J. ONIATE, Jr.
Frank J. ONIATE, Jr.
v.
Lanzio MAGEE and Boh Brothers Construction Company, Inc.
Frank J. ONIATE, Jr.
v.
ST. JUDE MEDICAL CENTER, INC.
Frank J. ONIATE, Jr.
v.
MAHORNER CLINIC, et al.

No. 97-C-2412.

Supreme Court of Louisiana.

May 19, 1998.

Miles Gregory Trapolin, New Orleans, Richard Phillip Ieyoub, Attorney General, for Applicant.

*443 Evan Farrell Trestman, Robert Alan Caplan, Vincent J. Glorioso, Jr., Terry E. Albritton, Dan Brian Zimmerman, M. David Gelfand, New Orleans, for Respondent.

KIMBALL, Justice.[*]

We granted this writ specifically to address the legal question of whether employees of the defendants, Charity Hospital of Louisiana at New Orleans and the State of Louisiana through the Department of Health and Hospitals (hereinafter "Charity"), are "persons" covered under the Malpractice Liability for State Services Act such that the $500,000 cap provided in La. R.S. 40:1299.39, as that statute existed in 1988,[1] applies to damages caused by their malpractice. After considering the statute's definition of a "Person," the legislature's purpose in enacting such an Act, and the history of La. R.S. 40:1299.39, we conclude defendants' employees are covered "persons" and, because Charity's liability to plaintiff is solely vicarious, Charity is entitled to the statutory cap on damages, exclusive of future medical care and related benefits, arising from the malpractice of its employees.

FACTS AND PROCEDURAL HISTORY

In this medical malpractice case, plaintiff, Frank Oniate, Jr., sued various physicians and hospitals for malpractice for the failure to diagnose his osteomyelitis (septic hip) caused by a flare-up of a latent surgical staph infection. Plaintiff sued, among others, Dr. David R. Silvers and Dr. John J. Walsh, Jr., for their failure to properly treat the "original" staph infection, and Dr. Bernard Manale and Charity for their failure to diagnose plaintiff's condition. All defendants, except Charity, settled prior to trial. At trial, a stipulation signed by the attorneys was entered into evidence which stated, "[T]he examining physicians performing examinations of the plaintiff at Medical Center of Louisiana, at New Orleans (hereinafter referred to as "Charity Hospital") were each employees at Charity Hospital at the time of such examinations and treatment, acting within the course and scope of their duties in providing health care on the dates relevant hereto, including January 11, 1988 and January 12, 1988." Subsequent to a bench trial, during which Charity sought to prove liability on the part of the other defendants, the trial court held Charity's employees' failure to diagnose Oniate's osteomyelitis on January 12, 1988 was the sole cause of his injuries. The court also found Charity was not protected by the statutory cap for medical malpractice damages because the cap did not apply to the state and its agencies at the time the practice occurred. The trial court awarded damages to Oniate in the following amounts: for physical pain and suffering, $2,000,000; for mental and emotional pain and suffering, risks and fears, $2,000,000; for future health care costs, $2,702,066; for past medical expenses, $54,432; and for earning capacity losses, $449,821.

On appeal, the fourth circuit reduced the award for past medical expenses to $45,724.39 and affirmed in all other respects. Ruiz v. Oniate, 96-2211 (La.App. 4 Cir. 8/6/97), 697 So.2d 1373. The court held that although Charity itself was not protected by the statutory cap, where it was vicariously liable, as it was here, it could take advantage of the cap if its employees were entitled to the cap under La. R.S. 40:1299.39. However, the court of appeal found that at the time Oniate was injured, the Malpractice Liability for State Services Act (MLSSA) applied only to individuals acting in a professional capacity in providing health care services when acting in the course and scope of their employment and pursuant to a written contract *444 with the state or any political subdivision thereof. Therefore, because Charity did not introduce any contracts with its employees, it was not error for the trial court to deny Charity the benefit of the cap. Addressing defendant's other concerns, the court of appeal also found that the admission of liability occurring when Drs. Silvers and Walsh settled runs only in favor of the plaintiff and was never intended to confer an evidentiary benefit adverse to the plaintiff upon third parties, that the trial court was not manifestly erroneous in its conclusion that Charity's employees were solely at fault in causing Oniate's injuries, and that the trial court was not manifestly erroneous in its assessments of Oniate's general damages, loss of earning capacity, and future health care costs.

This court granted Charity's writ to address the issue of whether the statutory cap on certain damages caused by the malpractice of Charity's employees applies where those employees were not employed pursuant to a written contract. Ruiz v. Oniate, 97-2412 (La.1/16/98), 707 So.2d 45. With respect to this issue, Charity argues that requiring a written employment contract to be introduced at trial in order to trigger the statute's protection afforded an individual physician acting on behalf of the state violates the broad, inclusive intent of the legislature to cover any individual acting in a professional capacity in providing health care services, by or on behalf of the state under the public medical malpractice act. In response, plaintiff asserts the language in subsection (A)(1) shows that coverage is provided only to: (1) a physician, psychologist, dentist, registered nurse, etc., (2) acting in the course and scope of his employment, and (3) pursuant to a written contract with the state or any political subdivision which specially names the health care provider or his employer. Plaintiff urges this court to adopt this reading since the MLSSA establishes provisions in derogation of common or natural rights and therefore must be strictly interpreted and not extended beyond its obvious meaning. Given our review of the legislative history of La. R.S. 40:1299.39 and the applicable rules of statutory construction, we find Charity's employees were "persons" to whom the statutory cap applied even though they were not employed pursuant to a written contract.

LAW

This court has noted that because the MLSSA limits the liability of certain health care providers in derogation of the general rights of tort victims, any ambiguities in the Act should be strictly construed against coverage. Kelty v. Brumfield, 93-1142, p. 9 (La.2/25/94), 633 So.2d 1210, 1216; Hutchinson v. Patel, 93-2156, p. 5 (La.5/23/94), 637 So.2d 415, 420 (holding similarly with respect to the Medical Malpractice Act). See also Branch v. Willis-Knighton Med. Ctr., 92-3086, p. 14 (La.4/28/94), 636 So.2d 211, 217; Rodriguez v. Louisiana Med. Mut. Ins. Co., 618 So.2d 390, 394 (La.1993); Galloway v. Baton Rouge Gen. Hosp., 602 So.2d 1003, 1005 (La.1992); Sewell v. Doctors Hosp., 600 So.2d 577, 578 (La.1992). On the other hand, legislation is a solemn expression of legislative will, and therefore, interpretation of a law involves primarily the search for the legislature's intent. La. C.C. art. 1; Hutchinson, 93-2156 at p. 5, 637 So.2d at 420; Touchard v. Williams, 617 So.2d 885, 888 (La.1993); Backhus v. Transit Cas. Co., 549 So.2d 283, 289 (La.1989); Keelen v. State Dept. of Culture and Recreation, 463 So.2

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