The Columbus Clinic, P.C. v. Reginald A. Williams

Court of Appeals of Georgia·Decided March 13, 2020·No. A19A1895·Published

Opinion

FIRST DIVISION

BARNES, P. J.,

MERCIER and BROWN, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed.

http://www.gaappeals.us/rules

March 12, 2020

In the Court of Appeals of Georgia A19A1895. THE COLUMBUS CLINIC, P. C. v. WILLIAMS.

BARNES, Presiding Judge.

Reginald A. Williams, M. D. sued his former employer, the Columbus Clinic, P. C., accusing it of terminating his employment in breach of their contract. The trial court granted summary judgment to the Clinic with respect to liability. In Williams v. Columbus Clinic, 332 Ga. App. 714 (773 SE2d 457) (2015), this Court reversed that judgment, explaining that a genuine issue as to a material fact remained. On remand, and upon a supplemented record, the trial court granted summary judgment to Williams on the liability issue. Now, the Clinic appeals. As explained below, the record does not establish that either party was entitled to judgment as a matter of law, so we reverse.

Summary judgment is proper “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” OCGA § 9-11-56 (c). “We review a grant or denial of summary judgment de novo and construe the evidence in the light most favorable to the nonmovant.” Matson v. Bayview Loan Servicing, 339 Ga. App. 890, 890 (795 SE2d 195) (2016).

As set out in Williams, 332 Ga. App. 714, the factual background of this case includes the following.

Williams and the Clinic entered into a Physician Employment Agreement (the “Agreement”) on December 31, 2008 under which Williams was to “provide professional medical and surgical services on behalf of [the Clinic] as an exclusive employee of [the Clinic]” and receive a salary as set forth in [an exhibit] to the Agreement. The term of the Agreement was for one year from its “Commencement Date” of January 15, 2009, and the Agreement provided that “[u]nless terminated as provided herein, this Agreement shall automatically renew for successive terms of one (1) year each upon the anniversary date of the Commencement Date.” Section 7.1 of the Agreement sets forth the circumstances in which the Clinic was entitled to terminate the Agreement for cause and provides in relevant part:

[The Clinic] shall . . . have the right to terminate this Agreement immediately, with cause, upon written notice to Physician if: . . . (ii) Physician’s privileges or staff membership at any hospital are terminated, revoked, suspended (other than for infrequent occurrences due to the failure to complete medical records in a timely manner), restricted, or terminated in any way (except for voluntary termination of privileges undertaken at the request and with the consent of [the Clinic]).

One of the Columbus hospitals where Williams had privileges was Doctors Hospital (the “Hospital”). Williams was granted Medical Staff membership on the Affiliate Staff at the Hospital in January 2009 and was granted Medical Staff membership on the Active Staff in January 2010 with privileges to render certain delineated professional services as approved by the Hospital’s board of directors. On or about May 19, 2010, Williams was advised that the Medical Executive Committee (“MEC”) of the Medical Staff of the Hospital was imposing a three-month proctorship on him. On or about June 18, 2010, the Clinic notified Williams that it was terminating his employment for cause under Section 7.1 (ii) of the Agreement, effective June 25, 2010. The Clinic’s partners and board of directors believed that the Clinic was authorized to terminate the Agreement for cause because the mandatory proctorship imposed by the Hospital constituted a restriction of Williams’[s] privileges.

Williams, 332 Ga. App. at 715-716.

Williams filed this breach of contract action against the Clinic, claiming that despite the proctorship, his privileges had not been restricted at any hospital as contemplated by Section 7.1 (ii), and that the Clinic thus did not have requisite cause to terminate their Agreement. The parties filed cross-motions for summary judgment as to liability, the issue being whether the proctorship constituted a restriction of privileges so as to provide the Clinic with cause to terminate their contract. Ruling in favor of the Clinic, the trial court found that the language set out at Section 7.1 (ii) was “clear, concise, controlling, and unambiguous,” and that thereunder, the Clinic was authorized to terminate the Agreement when the hospital imposed a proctorship on Williams. That ruling gave rise to Williams, 332 Ga. App. 714.

After reciting principles of contract construction,1 Williams turned to the language in Section 7.1 (ii) of the Agreement authorizing the Clinic to terminate the Agreement for cause if Williams’s “privileges . . . at any hospital are . . . restricted.” Williams, 332 Ga. App. at 718 (1). The Clinic urged that affirmance of the summary

1 Among such principles, Williams recited that the cardinal rule of contract construction is to ascertain the intent of the parties at the time they entered the agreement; that while contractual terms generally carry their ordinary meanings, technical words, or words of art, or used in a particular trade or business, will be construed, generally, to be used in reference to this peculiar meaning; and that a court must always consider the context in which a contractual term appears in determining its meaning. Williams, 332 Ga. App. at 718 (1).

judgment required nothing further than applying the ordinary or dictionary definition of “restrict,” but Williams found it “readily apparent from the context in which ‘restricted’ appear[ed] in this Agreement that we must look beyond a dictionary to determine the intended meaning of the term.” Id. As Williams elaborated, “[t]he privileges accorded to a physician to treat patients at a hospital are by their very nature always ‘restricted’ within the ordinary or dictionary definition of the term.” Id. (quoting, among other definitions of relevant terms, a medical dictionary that stated that “[c]linical privileges are limited by the individual’s professional license, experience, and competence”). And upon examining the Hospital’s Medical Staff Bylaws, Williams reasoned that “interpreting ‘restricted’ in its ordinary sense here would mean that the Clinic essentially enjoyed an unfettered right of termination, a result contrary to the parties’ clear intent to create a non-at-will employment relationship.” Id. at 719 (1).

Thus determining that “a ‘restriction’ of privileges at a hospital is a word or term of art that should be interpreted in accordance with its ‘peculiar meaning’ in this context,” Williams observed that the term “restricting” appeared in the Health Care

Quality Improvement Act (HCQIA).2 Williams, 332 Ga. App. at 719 (1). Summarizing aspects of the HCQIA and related regulations, Williams noted,

Under the HCQIA, a hospital that takes a professional review action that adversely affects the clinical privileges of a physician for a period longer than 30 days shall report the action to the State Board of Medical Examiners, and under the HCQIA’s implementing regulations also must report the action to the [National Practitioner Data Bank (NPDB)]. A “professional review action” is defined in pertinent part as an action or recommendation of a professional review body which is taken or made in the conduct of professional review activity, which is based on the competence or professional conduct of an individual physician and which affects (or may affect) adversely the clinical privileges of the physician. The term “adversely affecting” includes reducing, restricting, suspending, revoking, denying, or failing to renew clinical privileges or membership in a health care entity.

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