Sisters of Charity v. Duvelius

173 N.E. 737, 123 Ohio St. 52, 123 Ohio St. (N.S.) 52, 8 Ohio Law. Abs. 753, 1930 Ohio LEXIS 207
Ohio Supreme Court·Decided November 19, 1930·No. 22215·Published·Cited by 19 cases

Opinion

Marshall, C. J.

In the disposition of this case three legal propositions must be discussed: First, whether a privately owned but publicly operated hospital, either endowed or supported largely by public beneficence, is exempt from liability for the negligence of its agents and servants; second, is such a hospital relieved from liability for damages caused by the negligence of its agents and servants, where it is shown that those in charge of the hospital have exercised due care and caution in the selection of such agents and servants; third, is there any exemption from the liability of such a hospital at the suit of any one other than a patient while receiving treatment therein?

The first two propositions may be discussed together; and it is not necessary to do more than to briefly refer to three earlier decisions of this court. In Taylor, Admr., v. Protestant Hospital Assn., 85 Ohio St., 90, 96 N. E., 1089, 39 L. R. A. (N. S.), 427, the petition was filed on behalf of a patient who had been treated in a public and charitable hospital. The action was grounded upon the alleged negligence of a nurse, and the petition contained no allegation of failure to exercise due care in the selection of the nurse. The patient was a pay patient, who was received at the hospital for the purpose of an opera *55 tion. The answer alleged that the defendant was a public and charitable corporation, without capital stock, and operated without profit either to the corporation or its members, and that its funds and income were derived from donations, devises, and bequests by benevolent persons, and that the hospital was open to all persons applying for its benefits to the limit of its accommodations. A demurrer to this answer was overruled, and, the hospital not desiring to further plead, judgment was entered in favor of the hospital. This judgment was affirmed by this court, and in the syllabus it was broadly stated that the fact that a public charitable hospital received pay from a patient does not affect its character as a charitable institution, nor its rights and liabilities, as such, in relation to such patient. It was further declared that a public charitable hospital organized as such, and open to all persons, though conducted under private management, was not liable for injuries to a patient resulting from the negligence of a nurse employed by it. In Taylor v. Flower Deaconess Home & Hospital, 104 Ohio St., 61, 135 N. E., 287, 23 A. L. R., 900, it was alleged and proven that the hospital had failed to exercise due and reasonable care in the selection of physicians, nurses, or attendants, and that the injuries complained of resulted from the incompetence or negligence of such persons. This court declared that the hospital was liable to a patient under such circumstances. The opinion exhaustively reviews the authorities, citing and quoting from the cases which exempt public charitable hospitals from liability as well as from those which hold such hospitals liable to patients for the negligence of agents *56 and servants, where the hospital authorities have not exercised due and reasonable care in the selection of such agents and servants. Upon such review this court declared the rule of liability for negligence in the selection of incompetent agents and servants. The hospital corporation in that case was a public charitable institution, and it conclusively follows from the declaration of that principle that this court in that case rejected the doctrine of complete exemption of such institutions from liability for negligence.

The principles of the two Taylor cases were briefly reviewed and reaffirmed in Rudy v. Lakeside Hospital, 115 Ohio St., 539, 155 N. E., 126, in which case a public charitable hospital was exempted from liability for loss of property due to the negligence of a servant of the hospital, and where it was not shown that the hospital authorities had failed to exercise due care in the selection of the servant. The only difference between the Rudy case and the first Taylor case was that in the Taylor case the damages were to the person and in the Rudy case the damages were to property.

It is the policy of the law in all jurisdictions to safeguard trust funds devoted to charitable uses and purposes, in the sense that a court of equity will be diligent to prevent trust funds from being squandered or misappropriated to unauthorized uses, or willfully diverted to projects foreign to the trust, and the trustee may be individually held accountable for its restoration in the event of its negligent dissipation. It is a corollary to that proposition that in general the fund cannot be indirectly diverted by the tortious or negligent acts of the trus *57 tees or their agents, where those who are beneficiaries of the fund are the victims of the tortions or negligent acts. By some of the authorities the ground upon which the liability is denied is that the beneficiary assumes the risks attendant upon the service. In one authority it is said that one who accepts the benefit of the charity enters into a relation which exempts a benefactor from liability for the negligence of his servants in administering the charity. In still another case, exemption is grounded upon the doctrine of implied waiver. It is not necessary to choose between these theories, all of which are consistent with each other. This court is committed, by the three cases already cited, to the doctrine of liability to a beneficiary only for the failure to exercise due care in the selection of servants. By the fact of affirming the liability to a beneficiary for negligence in selecting a servant, as in the second Taylor case, it follows that this court has impliedly repudiated the doctrine of complete exemption of charitable institutions. If any liability against the charitable institution for negligence is recognized upon any ground it destroys the theory of general exemption.

We have so far discussed this case from the standpoint of a beneficiary. But this has only been for the purpose of determining whether funds given or bequeathed to a charity may be made to respond for the negligence of the agency which administers charity.

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Sisters of Charity v. Duvelius, 173 N.E. 737, 123 Ohio St. 52, 123 Ohio St. (N.S.) 52, 8 Ohio Law. Abs. 753, 1930 Ohio LEXIS 207 (Ohio 1930).

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