Sandone v. Dallas Osteopathic Hospital

331 S.W.2d 476, 1959 Tex. App. LEXIS 1781
CourtCourt of Appeals of Texas
DecidedNovember 16, 1959
Docket6938
StatusPublished
Cited by18 cases

This text of 331 S.W.2d 476 (Sandone v. Dallas Osteopathic Hospital) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sandone v. Dallas Osteopathic Hospital, 331 S.W.2d 476, 1959 Tex. App. LEXIS 1781 (Tex. Ct. App. 1959).

Opinions

CHAPMAN, Justice.

This is a summary judgment case for malpractice and negligence filed on April 12, 1958. Damages were sought by appellant, Mrs. J. M. Sandone, joined pro forma by her husband, J. M. Sandone, against Dallas Osteopathic Hospital and three osteopathic practitioners, Arthur W. Kratz, D. O.; Joe De Petris, D. O.; and Martha Winkler, D. O., the latter an' intern in said hospital at the time material hereto. Mr. Sandone, being only a party pro forma, appellants will be hereafter referred to in the singular.

Appellee filed its motion for summary judgment based upon appellant’s original petition, appellee’s original answer and the affidavit of Louis S. Taylor, Administrator of appellee hospital. Attached to said affidavit were copies of the original charter of Dallas General Hospital, amendment to said charter changing the name to Dallas Osteopathic Hospital and amendment to the charter of the last named hospital. Subsequently, appellant filed her request for admissions and her motion to dismiss the motion for summary judgment. Approximately six months thereafter the court heard the motion for summary judgment and found there was no genuine issue as to any material fact. On the same day all parties acquiesced in a severance of Dallas Osteopathic Hospital from the other parties defendant and agreed on finality as to it of said judgment. It was agreed that trial on the merits as to the other parties defendant was not to be affected thereby. From the trial court’s ruling on the motion for summary judgment appellant perfected her appeal to the Court of Civil Appeals of the 5th Supreme Judicial District at Dallas, and the case was transferred to us by the Supreme Court for determination. In her first four and last three points appellant urges the proposition that a genuine issue as to the material facts concerning whether appellee was a “charitable institution” existed, hence the court erred in sustaining appellee’s motion for summary judgment.

The institution as a charity was pleaded in appellee’s answer, sworn to be such by its administrator, urged by it in its motion for summary judgment, and its charter as amended seeks to bring it within that category. Among other things, the charter sets out the hospital’s purposes as being the acquisition, erection, maintenance and operation of a benevolent, charitable, scientific and educational hospital and clinic for the purpose of administering to the sick, to the infirm, to the helpless, to the maimed, and to the afflicted of all creeds, colors and nationalities, etc.; the development of young surgeons and physicians in the study and research in the various fields of medicine, osteopathy, surgery, and human suffering, and to receive donations, gifts and devises to further said work; that no part of the net earnings shall ever inure to" the benefit of any member, officer, director or private individual; and that any receipts in excess of the expenses of purchase or erection, operation, and maintenance shall be applied [478]*478by the corporation to the care of charity patients, and to the equipment and enlargement of said hospital and clinic.

Its administrator, Louis S. Taylor, made .affidavit that “To my knowledge, the Dallas Osteopathic Hospital immediately prior to, ■on and after March 1, 1958 was operated in accordance with its Charter as amended as shown by said Exhibits. To my knowledge, said Hospital is not operated for profit and no dividends nor other financial benefit inures to any member, officer, director or other private individual out of the ■operation of said Hospital.

“The United States Treasury Department has entered a ruling that Dallas Osteopathic Hospital is a charitable corporation and, not ■only is it immune from taxation under the Federal Tax Laws, but contributions made to it by donors may be deducted under the provisions of the Internal Revenue Code." Appellant offered no affidavits or depositions in opposition to appellee’s motion for summary judgment, and other than un-•sworn pleadings has nothing whatever to •oppose such motion and affidavit except the .answers to her requests for admissions. Neither is there a showing that affidavits ■on her behalf were unavailable. The record shows a “Plaintiff’s Motion For Discovery” filed but same does not show to have been acted upon and no point is brought forward for the court’s failure in that respect.

Appellant, in her request for admissions •under Rule 169 Vernon’s Annotated Texas Rules of Civil Procedure asked the Administrator a hundred fifty-eight questions. Many of them were held by the court, in a pre-trial order, as not necessary to be answered for the various reasons asserted in .appellee’s objections to the request for admissions. Of those answered it was established that appellant arrived at the hospital by ambulance about March 9, 1958; that a ■deposit of $100 was requested and received from her; that defendant Martha Winkler .■graduated from the Chicago College of Osteopathy in 1957 with a degree of Doctor of Osteopathy; that she had a temporary license from the State Board of Medical Examiners of the State of Texas and was serving her internship during the period in question; that on or about the evening of March 9, 1958, or early the following morning she injected chemicals containing dextrose and potassium chloride by means of a needle inserted into a vein of the lower right leg of appellant; that a lesion on appellant’s lower right leg appeared and was apparent to the agents and/or employees of appellee between the 16th and 23rd days of March, 1958; that appellee knew appellant had no such lesion when she entered the hospital and knew she did have it when she ceased to be a patient; that appellant never left the hospital from the time she checked in until she left it about March 23; and that appellee carefully checked the qualifications of all prospective employees.

The first basic question with which we are then presented in the points under discussion is what constitutes a charitable institution under the laws of Texas. The Dallas Court of Civil Appeals in Baylor University v. Boyd, 18 S.W.2d 700, has held that a hospital not being operated for profits but at the end of the fiscal year placing in its general fund, and using for its general charitable purposes, any surplus, however derived, above expenses of maintenance and operation, is a charitable institution, though requiring of patients payment of their board according to their circumstances and accommodations received and this though no person may individually have the right to demand admission.

Our Supreme Court, in Southern Methodist University v. Clayton, 142 Tex. 179, 176 S.W.2d 749, has held that charity corporations are immune from liability for torts of their agents, in the absence of negligence in employing or retaining the latter, whether the injured party be a beneficiary of the trust or a stranger to it.

The charity status of the hospital was attacked by appellant on the theory that appellee used the “profit and loss” system [479]*479of accounting rather than the “fund” system. The hospital admitted it did so but we believe that alone is insufficient to raise a fact issue on the question. Appellant has not furnished us with any authority holding that the use of such accounting system would raise a fact issue as to the charity status of an institution, nor have we found any such authority.

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Sandone v. Dallas Osteopathic Hospital
331 S.W.2d 476 (Court of Appeals of Texas, 1959)

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Bluebook (online)
331 S.W.2d 476, 1959 Tex. App. LEXIS 1781, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sandone-v-dallas-osteopathic-hospital-texapp-1959.