Serrano-Munoz v. Sociedad Espanola De Auxillo

671 F.3d 49
CourtCourt of Appeals for the First Circuit
DecidedJanuary 26, 2012
Docket08-1887
StatusPublished
Cited by34 cases

This text of 671 F.3d 49 (Serrano-Munoz v. Sociedad Espanola De Auxillo) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Serrano-Munoz v. Sociedad Espanola De Auxillo, 671 F.3d 49 (1st Cir. 2012).

Opinion

HOWARD, Circuit Judge.

This is a retaliation case under the Age Discrimination in Employment Act of 1967 (ADEA), 29 U.S.C. § 623(d) (2006), and Puerto Rico’s general tort statute known as Article 1802, P.R. Laws Ann. tit. 31, § 5141 (2008). In 1998, Dr. José Alfonso Serrano Muñoz sued his employer Auxilio Mutuo Hospital in a Puerto Rico court, alleging that the hospital had discriminated against him because of his age. In 2004, one day after Serrano was deposed in connection with that lawsuit, the hospital terminated his employment. Serrano then brought the present action in federal court, alleging that he was terminated in retaliation for his pending lawsuit and related 2004 deposition testimony. A jury agreed with Serrano and he was awarded nearly $2 million. On appeal, the defendants challenge the denial of their renewed *53 motion for judgment as a matter of law (JMOL) and several other rulings. Although our reasoning differs in certain respects from that of the court below, we affirm.

I. BACKGROUND 1

The hospital is a leading medical facility in San Juan, Puerto Rico. It is owned and operated by defendants Sociedad Española de Auxilio Mutuo y Beneficiencia de Puerto Rico, Inc. (SEAM) and Hospital Español de Auxilio Mutuo de Puerto Rico, Inc. (HEAM). 2 In 1978, the hospital hired Serrano as a cardiologist. He rose to become director of the hospital’s Noninvasive Cardiovascular Laboratory (NICL) and its Invasive Cardiovascular Laboratory (ICL), both of which he had helped establish. Beginning in 1979, Serrano also engaged in private practice in leased office space on the hospital’s grounds.

In 1997, the hospital relieved Serrano of his directorship of ICL, although his position in NICL remained intact. According to the hospital, it was expanding and modernizing and wanted Serrano to focus on his responsibilities as director of NICL. Serrano concluded that this decision was the result of age discrimination. In 1998, he sued the hospital in local court, but he continued to serve as director of NICL and maintain his private practice.

Previously, Serrano had requested permission from the hospital to acquire an electrocardiography machine for use in his private practice. Miguel Echenique, SEAM’s executive director, sent Serrano a letter denying that request. According to the letter, the hospital’s policy, set forth in its lease contracts with doctors, was not to allow individual doctors to keep “expensive equipment which [the hospital] already had and where services were being rendered.” The letter added, however, that the hospital would allow “doctors to have their own equipment for the practice of each speciality in the medical office building which is currently under construction.” In 2001, Serrano moved his practice to the new medical office building, known as Torre Médica. In August 2003, he acquired an electrocardiography machine for use at Torre Médica and began conducting a majority of echocardiograms there rather than referring patients to NICL. By performing the tests at his office, Serrano could bill patients’ insurance companies for test production fees that the hospital otherwise would have collected.

Soon after Serrano acquired the machine, the hospital noticed a decline in the number of outpatient diagnostic tests conducted by NICL. An annual productivity report using statistics prepared by hospital staff revealed that the lab conducted five percent fewer such tests from October 2002 to September 2003 than it had from October 2001 to September 2002, and that, during the 2002-2003 fiscal year, it conducted progressively lower numbers of echocardiograms. HEAM’s administrator, Iván Colon, ordered a breakdown of the number of echocardiograms performed by each of the hospital’s cardiologists. Colon concluded that Serrano’s hospital lab numbers had dropped by the largest percentage, and that the decline correlated with Serrano’s purchase of the electrocardiography machine for his private practice.

*54 On December 29, 2003, Colon presented his findings at HEAM’s monthly board meeting. According to the minutes, board members expressed their dissatisfaction that Serrano was competing directly with the hospital by producing his own echocardiograms. The board was further dissatisfied that Serrano had indicated—during a previous deposition in yet another litigation pertaining to an unrelated property dispute with the hospital—that he was not concerned about whether he was diverting production fees from the hospital. During the meeting, Ángel Cocero Sanchéz, the chairman of HEAM’s board of directors, added that “Dr. Serrano show[ed] a constant dissatisfaction with the services rendered by the Hospital, and is opposed and openly criticizes—verbally and in writing—all the Hospital’s initiatives.” The board then voted unanimously to terminate Serrano’s employment “in order not to continue and [sic] putting the Hospital at risk and damaging its best interests.” It designated Colon to deliver the news to Serrano “at the moment he considered] to be best.”

On January 19, 2004, still unaware of the board’s decision to terminate him, Serrano gave a deposition in connection with the 1998 lawsuit. Among other things, he detailed the hospital’s alleged acts underlying his discrimination claim. According to Serrano, the deposition was far from cordial and ended in a “heated fashion” over scheduling. The next day Serrano received a terse letter from Colon notifying him that his employment was terminated immediately; the letter did not offer any reason for his termination. At trial Colon explained that he waited to inform Serrano of the board’s decision because of his own prescheduled vacation soon after the December 29 board meeting. Colon returned in mid January and, unaware of Serrano’s deposition, chose January 20 to deliver the news based on Serrano’s light schedule that day.

In 2005, Serrano brought the present action against SEAM, HEAM, and the individual members of HEAM’s board. During trial the defendants moved orally for JMOL, without success. See Fed. R.Civ.P. 50(a). The jury returned a verdict in favor of Serrano on both his ADEA and Article 1802 claims. It awarded Serrano $1,000,000 in compensatory damages, $267,400 in back pay, and $267,400 in liquidated damages. The defendants then renewed their motion for JMOL and, in the alternative, moved for a new trial. See Fed.R.Civ.P. 50(b), 59(a). The court denied those motions as well. Later the court awarded Serrano $250,979.41 in front pay and $139,906.25 in attorney’s fees, bringing his total award to nearly $2 million. This appeal followed.

II. DISCUSSION

We begin with the ADEA claim, turn next to Article 1802, and conclude by briefly addressing a few remaining issues.

A. Retaliation under the ADEA

The defendants first argue that their renewed motion for JMOL should have been granted with respect to Serrano’s retaliation claim under the ADEA.

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Bluebook (online)
671 F.3d 49, Counsel Stack Legal Research, https://law.counselstack.com/opinion/serrano-munoz-v-sociedad-espanola-de-auxillo-ca1-2012.