Thomas v. Archer

384 P.3d 791, 2016 Alas. LEXIS 132, 2016 WL 7030289
CourtAlaska Supreme Court
DecidedDecember 2, 2016
Docket7136 S-15372
StatusPublished
Cited by7 cases

This text of 384 P.3d 791 (Thomas v. Archer) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas v. Archer, 384 P.3d 791, 2016 Alas. LEXIS 132, 2016 WL 7030289 (Ala. 2016).

Opinion

OPINION

MAASSEN, Justice.

I. INTRODUCTION

A woman was admitted to a hospital emergency room with pregnancy-related complications. The attending physician recommended that she be transported by medivac to a different facility. The woman and her husband informed the physician that they needed their insurer’s preauthorization for that course of action or they could be personally liable for the costs. The physician allegedly promised to call the insurer and, if it would not approve the medivac, have the hospital bear the costs itself. But the physician failed to contact the insurer until much later, and the insurer declined coverage.

The couple sued the physician and the hospital, alleging that the physician breached her fiduciary duty by failing to obtain preau-thorization as promised; that her promise created an enforceable contract, which was breached; and that if there was no contract the physician’s promise should be enforced through the doctrine of promissory estoppel. The superior court granted summary judgment to the physician and hospital. The couple appeals.

We hold that the superior court did not err when it ruled in favor of the physician and hospital on thé Claims for breach of fiduciary duty and breach of contract, but that genuine issues of material fact precluded summary judgment on the claim for promissory estop-pel. We therefore reverse and remand for further proceedings.

II. FACTS AND PROCEEDINGS

Á. Facts

Rachel Thomas was admitted to the emergency room at Ketchikan General Hospital in October 2008 for pregnancy-related complications. 1 She was seen by Dr. Sarah B. Archer, who determined that Rachel was at risk of *794 premature delivery and needed an immediate transfer to a facility better equipped to handle her condition. Because of weather conditions in Anchorage, Dr. Archer recommended that Rachel be medivacked to Swedish Medical Center in Seattle. According to the Thom-ases, they told Dr. Archer they could not personally afford the medivac and needed preauthorization from the Ketchikan Indian Corporation Tribal Health Clinic (KIC) and the Alaska Native Medical Center (ANMC) before they could be covered for treatment outside of ANMC’s Anchorage facilities. 2 The Thomases allege that .Dr, Archer told them “she would contact KIC, not to worry, that everything will be taken care of, and that if KIC didn’t cover it ‘we’ will,” According to the Thomases, they understood “we” to mean the hospital.

In the process of arranging the transfer, Steven Thomas signed an “Acknowledgment of Financial Responsibility,” which cautioned that the Guardian Flight medivac charges could be significant. Though naming KIC as the “Payment Source,” Steven agreed to be personally responsible for any unpaid charges and to “save and hold the hospital harmless therefrom.”

The Thomases were eventually billed over $ 23,000 by Swedish Medical Center and over $69,000 by Guardian Flight, the medivac provider. The Thomases sought payment from KIC and ANMC under their coverage plan but were denied for three stated reasons: (1) they failed to request preauthorization within 72 hours of beginning treatment or of admission to the healthcare facility; (2) ANMC was “available and accessible to provide the necessary medical services to the patient”; and (3) the Thomases lacked a referral or authorization for the transfer from an ANMC physician. The Thomases admit knowing about the preauthorization requirements and that obtaining preauthorization was ultimately their responsibility; they allege, however, that they boarded the flight based on Dr, Archer’s assurances that those requirements would be satisfied by someone else. Dr. Archer did later write KIC and ANMC to explain her decision to have Rachel transported to Seattle, but not until May 2009, over six months after the transfer.

B. Proceedings

In 2010 the Thomases filed suit against the hospital and Dr. Archer (collectively “the hospital”) 3 alleging breach of fiduciary duty, breach of contract, promissory estoppel, 4 and negligent or intentional infliction of emotional distress. The claims were all based on Dr. Archer’s alleged promise to contact the Thomases’ insurance providers and ensure coverage for the expenses related to Rachel’s transport to and treatment in Seattle. The superior court granted summary judgment to the hospital on the Thomases’ fiduciary duty claim, agreeing with the hospital’s argument that a physician’s fiduciary duty is limited to the context of medical treatment. The court later granted summary judgment to the hospital on the remaining claims, holding that the facts as alleged did not create an enforceable contract and that there was no actual promise to the Thomases or substantial change in position by the Thomases sufficient to support their promissory estoppel claim. The court also dismissed the claims for negligent and intentional infliction of emotional distress, noting that the Thomases had agreed to withdraw them, although they had not yet done so, and had produced no evidence or legal authority to support the claims. 5

The hospital moved for attorney’s fees as the prevailing party, supporting its motion with an affidavit that summarized its fees *795 and offering to file itemized billing records under seal for in camera review. The Thom-ases opposed the motion. The superior court ordered the hospital to submit its billings for in camera review but did not require that they be shared with the Thomases. Following in camera review, the court awarded the hospital approximately $ 25,000 in attorney’s fees (20% of the total billings) and over $ 6,000 in costs. This appeal followed.

III. STANDARD OF REVIEW

“We review grants of summary judgment de novo.” 6 ‘We ‘will affirm a grant of summary judgment if the evidence in the record presents no genuine issue of material fact and the moving party is entitled to judgment as a matter of law.’ ” 7

Whether there is a fiduciary duty and whether promissory estoppel applies are both questions of law to which we apply our “independent judgment, adopting the rule of law that is most persuasive in light of precedent, reason, and policy.” 8

IV. DISCUSSION

The Thomases argue three substantive points on appeal: (1) that the superior court erred by deciding that Dr. Archer did not owe the Thomases a fiduciary duty to contact KIC for authorization after having promised to do so; (2) that the superior court erred by deciding on summary judgment that the parties’ words and actions did not create an enforceable contract; and (3) that the superi- or court erred by rejecting promissory estop-pel as a basis for enforcement of Dr. Archer’s alleged promise to the Thomases. 9

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Cite This Page — Counsel Stack

Bluebook (online)
384 P.3d 791, 2016 Alas. LEXIS 132, 2016 WL 7030289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-archer-alaska-2016.