Seglin v. Old Orchard Hospital

548 N.E.2d 626, 192 Ill. App. 3d 176, 139 Ill. Dec. 241, 1989 Ill. App. LEXIS 1856
CourtAppellate Court of Illinois
DecidedDecember 12, 1989
DocketNos. 1—87—3853, 1—87—3874 cons.
StatusPublished
Cited by1 cases

This text of 548 N.E.2d 626 (Seglin v. Old Orchard Hospital) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seglin v. Old Orchard Hospital, 548 N.E.2d 626, 192 Ill. App. 3d 176, 139 Ill. Dec. 241, 1989 Ill. App. LEXIS 1856 (Ill. Ct. App. 1989).

Opinion

PRESIDING JUSTICE BILANDIC

delivered the opinion of the court:

Plaintiff, Dr. Melvin Seglin, sued defendants for the summary suspension of his admitting and staff privileges at Old Orchard Hospital (the Hospital). The trial court dismissed this case pursuant to defendants’ section 2 — 615 motion (Ill. Rev. Stat. 1985, ch. 110, par. 2—615). Defendant appealed the denial of attorney fees. Plaintiff cross-appealed the dismissal of this action.

The motion to dismiss was, in reality, a hybrid motion which involved two allegations which were proper under section 2—615 (Ill. Rev. Stat. 1985, ch. 110, par. 2—615), and a third allegation which was proper under section 2 — 619 (Ill. Rev. Stat. 1985, ch. 110, par. 2 — 619). The form of the motion, which was labeled simply “Motion to Dismiss” and only referred to section 2 — 615, while improper, does not require dismissal absent a showing of prejudice. (Wilde v. First Federal Savings & Loan Association (1985), 134 Ill. App. 3d 722, 480 N.E.2d 1236; Cali v. DeMattei (1984), 121 Ill. App. 3d 623, 460 N.E.2d 121.) No prejudice was alleged here. Thus, we will consider the allegations raised in this hybrid motion.

Plaintiff, a psychiatrist, filed a two-count action seeking damages. In count I, he alleged that defendants breached their contract with him by suspending his admitting privileges at the hospital in contravention of its bylaws, rules and regulations. In count II, he alleged that the suspension of his admitting privileges was a tortious interference with prospective business relationships between him and his patients.

The pleadings allege the following facts. Dr. Seglin had full admitting privileges at the hospital since 1977. A dispute arose between Dr. Seglin and the hospital over how to approach caring for a juvenile patient. The patient was admitted to the hospital in July 1981. When that patient was discharged from the hospital in October 1981, Dr. Seglin had no other patients in the hospital. As a result of the dispute, Dr. Esau, as medical director of the hospital, initiated a request that all of Dr. Seglin’s staff and admitting privileges be summarily suspended, on the grounds that plaintiff failed to maintain appropriate medical records and had failed to attend meetings unilaterally scheduled by defendant Kachoris, as director of the child program.

As a result of Dr. Esau’s request, the administrative committee summarily suspended plaintiff on October 14, 1981. Plaintiff alleges that this suspension was a breach of contract because the grounds for the suspension were on their face inadequate to support the suspension according to the bylaws and rules.

The pleadings further allege that in breach of the contract, an ad hoc committee was appointed to review the suspension. The appointment of the ad hoc committee violated the bylaws. Neither the administrative committee nor the ad hoc committee afforded plaintiff an appearance within the time limits required in the bylaws and rules relating to summary suspension. The ad hoc committee unanimously decided to continue the suspension and gave its report to that effect to the administrative committee on or about October 30,1981.

The administrative committee decided to continue the suspension. Dr. Seglin was notified of the continuation of his suspension on November 4, 1981.

A hearing before a judicial review committee (JRC) was arranged at Dr. Seglin’s request. (The JRC is not an independent judicial body, but is a committee within the hospital’s corporate structure.) Dr. Seglin maintained that the suspension should be declared invalid because the administrative committee’s actions did not adhere to the provisos of the bylaws. Hearings were concluded on November 19,1982.

The JRC’s report, issued on January 13, 1983, concluded that the suspension was unwarranted and not supported by the evidence, and reinstated Dr. Seglin.

Plaintiff alleges that: (1) defendant Esau initiated the summary suspension upon obviously inadequate and inappropriate grounds, clearly in contravention of the bylaws and rules; and (2) defendants Grygotis, Klapman, and Kachoris continued the summary suspension and issued a report to that effect, in breach of contract, upon obviously inadequate and inappropriate grounds, clearly in contravention of the bylaws and rules. Plaintiff further alleges that despite his vindication by the JRC, he has been foreseeably and seriously damaged in his professional practice by the defendants’ breach of contract. He also alleges that this was an unjustified, intentional interference with his ability to practice psychiatry and to form professional relationships with prospective patients.

The defendants’ motion to dismiss was based on three allegations. First, defendants alleged section 10.2 of the Illinois Hospital Licensing Act (Ill. Rev. Stat. 1985, ch. 1111/2, par. 151.2), which regulates the liability of individuals and hospitals, bars any action against physicians who participate in peer review committees, “or any other committee whose purpose *** is internal quality control *** or the improving or benefiting of patient care and treatment, *** or for the purpose of professional discipline.” Second, they argued the bylaws of the hospital barred this action, since the bylaws limit plaintiffs exclusive remedy to a writ of mandate. Third, they asserted the claim for interference with prospective business relations failed because it did not allege that defendants directed their conduct toward plaintiffs prospective patients. Defendants also asked for the awarding of attorney fees as provided in the hospital bylaws. The trial court dismissed both counts on the grounds that the bylaws specified that plaintiff’s exclusive remedy was an action for mandamus. The trial court denied defendants’ motion for costs and fees.

Defendants appealed the denial of attorney fees. Plaintiff cross-appealed the dismissal of the action. We affirm.

I

We must initially determine whether plaintiffs complaint for money damages was sufficient to state a cause of action in order to withstand a motion to dismiss. Pleadings are to be liberally construed to provide substantial justice between parties. (Ill. Rev. Stat. 1983, ch. 110, par. 2—603(c).) A dismissal should not be based solely on the pleadings “unless it clearly appears that no set of facts can be proved which will entitle plaintiffs to recover.” Fitzgerald v. Chicago Title & Trust Co. (1978), 72 Ill. 2d 179, 187, 380 N.E.2d 790.

While it is well settled in Illinois that a private hospital’s refusal to appoint a physician to its medical staff is not subject to judicial review (Barrows v. Northwestern Memorial Hospital (1988), 123 Ill. 2d 49, 50-60, 525 N.E.2d 50), an exception to that rule of nonreview exists where a private hospital revokes, suspends or reduces a physician's existing staff privileges. The hospital must follow its own bylaws or be subject to limited judicial review. Jain v. Northwest Community Hospital (1978), 67 Ill. App.

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Bluebook (online)
548 N.E.2d 626, 192 Ill. App. 3d 176, 139 Ill. Dec. 241, 1989 Ill. App. LEXIS 1856, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seglin-v-old-orchard-hospital-illappct-1989.