Saer v. New Orleans Regional Physician Hospital Organization

169 So. 3d 617, 14 La.App. 5 Cir. 856, 2015 La. App. LEXIS 560, 2015 WL 1393264
CourtLouisiana Court of Appeal
DecidedMarch 25, 2015
DocketNo. 14-CA-856
StatusPublished
Cited by6 cases

This text of 169 So. 3d 617 (Saer v. New Orleans Regional Physician Hospital Organization) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saer v. New Orleans Regional Physician Hospital Organization, 169 So. 3d 617, 14 La.App. 5 Cir. 856, 2015 La. App. LEXIS 560, 2015 WL 1393264 (La. Ct. App. 2015).

Opinion

JUDE G. GRAVOIS, Judge.

1 j>Plaintiff/appellant, Dr. John Saer, appeals the trial court’s denial of his request for a preliminary injunction. For the following reasons, we affirm.

FACTS AND PROCEDURAL HISTORY

Defendant/appellee, New Orleans Regional Physician Hospital Organization, Inc. d/b/a Peoples Health Network1 (“Peo- ■ pies Health”), provides health plans to those who qualify for Medicare benefits. On January 1, 2010, Dr. John Saer, a physician specializing in retinal disease [619]*619and surgery, a subspecialty of ophthalmology, entered into a Specialty Care Physician Agreement (“the Agreement”) with Peoples Health to become an Ophthalmology-Retina provider to Peoples Health’s members. The Agreement included the following provision regarding termination of the Agreement without cause, to-wit: “This Agreement may be terminated by either Physician or [Peoples Health] at any time, without cause, by the giving to the other party of sixty (60) days prior written notice.”

|aBy letter dated June 30, 2014, Peoples Health notified Dr. Saer that it had decided to terminate the Agreement, effective on August 31, 2014. Dr. Saer appealed Peoples Health’s decision. His appeal was presented to a three-person panel of individuals who were not involved in the initial decision to. terminate the Agreement. On July 31, 2014, Peoples Health notified Dr. Saer by letter that based on the panel’s review, Peoples Health would uphold its decision to terminate the Agreement, that the decision was final, and that there would be no further appeal rights concerning termination of the Agreement. Peoples Health also began notifying Dr. Saer’s patients that he no longer would be a health care provider for Peoples Health after August 31, 2014.

On August 15, 2014, Dr. Saer filed a Petition for Declaratory Judgment and In-junctive Relief. In his petition, Dr. Saer alleged that Peoples Health did not comply with the notice and hearing provisions regarding termination of physicians by a Medicare Advantage organization as set forth in 42 C.F.R. § 422.202(d). Further, Dr. Saer alleged that as a result of these actions, his reputation was irreparably harmed and his patients were adversely impacted.

On August 18, 2014, the trial court issued a Temporary Restraining Order restraining Peoples Health from terminating the Agreement and/or excluding Dr. Saer from its plans or network. In said Order, the trial court also set a hearing for August 25, 2014 on Dr. Saer’s request for a preliminary injunction.

On August 25, 2014, the hearing on Dr. Saer’s request for the preliminary injunction was heard strictly upon affidavits (as requested by Dr. Saer) and other documents presented as evidence and argument of counsel. After the hearing, the trial court denied the request for the preliminary injunction, finding that Dr. Saer did not meet his burden of proving that he would suffer irreparable harm if the preliminary injunction was not issued, and that Dr. Saer was seeking “mandatory | ¿injunctive relief and that it is not appropriate to award such relief at this stage of the proceedings based on the affidavits introduced by the parties.” 2 This devolu-tive appeal followed.3

[620]*620On appeal, Dr. Saer asserts two assignments of error. In his first assignment, Dr. Saer argues that the trial court was manifestly erroneous in denying the preliminary injunction because Peoples Health violated his right to a hearing under 42 C.F.R. § 422.202(d) by not providing him with the reasons for its decision to terminate him, the standards and profiling data used to evaluate him, or the numbers and mix of physicians needed by Peoples Health. In his second assignment, Dr. Saer argues that the trial court erred in finding that he was requesting a mandatory injunction. Rather, he argues that he was simply requesting a prohibitory injunction preventing Peoples Health from terminating the Agreement.

LAW AND ANALYSIS

We address Dr. Saer’s second assignment of error first, as it is fully dispos-itive of the matter.

In his second assignment, Dr. Saer argues that the trial court erred in finding that he was requesting mandatory injunc-tive relief, rather than prohibitory injunc-tive relief. He argues that the only relief he requested was a prohibitory injunction, since the injunction he requested would not have resulted in the court ordering Peoples Health to take any action. He argues that he only sought to Uprevent Peoples Health from terminating the Agreement pending a trial on the merits of the case.

Appellate courts review the denial of a preliminary injunction under the manifest error standard. Mary Moe, L.L.C. v. Louisiana Bd. of Ethics, 03-2220 (La.4/14/04), 875 So.2d 22, 29. Absent a clear abuse of discretion, the trial court’s judgment shall not be disturbed. Novelaire Techs., L.L.C. v. Harrison, 08-157 (La.App. 5 Cir. 8/19/08), 994 So.2d 57, 61.

An injunction shall be issued in cases where irreparable injury, loss, or damage may otherwise result to the applicant, or in other cases specifically provided by law. La. C.C.P. art. 3601(A). During the pendency of an action for an injunction, the court may issue a temporary restraining order, a preliminary injunction, or both. La. C.C.P. art. 3601(C). A generally recognized purpose of a preliminary injunction is to preserve the status quo during the pendency of further judicial proceedings. Maynard Batture Venture v. Parish of Jefferson, 96-649 (La.App. 5 Cir. 12/30/96), 694 So.2d 391, 392.

Louisiana jurisprudence has recognized a distinction between an injunction sought to preserve the status quo, i.e., a prohibitory injunction, and an injunction sought to command specific action. A mandatory injunction is one which orders “the doing of something.” Maestri v. Destrehan Veterinary Hosp. Inc., 554 So.2d 805, 808 (La.App. 5 Cir.1989). See also Denta-Max v. Maxicare La., 95-2128 (La.App. 4 Cir.1996), 671 So.2d 995, 996; City of New Orleans v. Bd. of Dirs. of the La. State Museum, 98-1170 (La.3/02/99), 739 So.2d 748, 756.

The distinction between a prohibitory injunction and a mandatory injunction matters in terms of both procedure and evidence. Generally, a preliminary injunction, which simply preserves the status quo until a full trial on the merits, may be issued on a prima facie showing by the party seeking the injunction. Denta-Max, 671 So.2d at 997. However, jurisprudence has established that a mandatory preliminary injunction has the same basic effect as a permanent injunction, and therefore may not be issued on merely a prima facie showing that the party seeking the injunction can prove the necessary elements. Id. Instead, a [621]*621party seeking a mandatory preliminary injunction must show by a preponderance of the evidence at an evidentiary hearing that he is entitled to the preliminary injunction. Id. See also City of New Orleans, 739 So.2d at 756. This Court has previously reversed the granting of a mandatory preliminary injunction because the matter was conducted solely on affidavits and not at a hearing on its merits. Maestri, 554 So.2d at 808-809. See also Kern v. Kern, 11-0915 (La.App. 4 Cir.

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169 So. 3d 617, 14 La.App. 5 Cir. 856, 2015 La. App. LEXIS 560, 2015 WL 1393264, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saer-v-new-orleans-regional-physician-hospital-organization-lactapp-2015.