Wright v. Mercy Hospital of Janesville, Wisconsin, Inc.

557 N.W.2d 846, 206 Wis. 2d 449, 1996 Wisc. App. LEXIS 1460
CourtCourt of Appeals of Wisconsin
DecidedNovember 14, 1996
Docket95-2289
StatusPublished
Cited by13 cases

This text of 557 N.W.2d 846 (Wright v. Mercy Hospital of Janesville, Wisconsin, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wright v. Mercy Hospital of Janesville, Wisconsin, Inc., 557 N.W.2d 846, 206 Wis. 2d 449, 1996 Wisc. App. LEXIS 1460 (Wis. Ct. App. 1996).

Opinion

DEININGER, J.

Mercy Hospital and its insurer appeal from a judgment awarding Cheryl Wright damages for medical malpractice and from an order awarding her reasonable attorney fees. Wright cross-appeals the trial court's reduction of damages for economic loss. We conclude that the trial court properly exercised its discretion in fashioning the special verdict, in making certain evidentiary rulings, and in *456 denying Mercy's late request for leave to file a cross-claim. We further conclude that the trial court properly applied the law in interpreting a pretrial settlement agreement and in awarding reasonable attorney fees under § 51.61, STATS. Thus, we affirm the judgment and order. Similarly, because we find the trial court properly applied the law in dismissing Wright's claim for damages based upon "wrongful divorce," we affirm the reduction of the jury's award for economic loss.

BACKGROUND

Cheryl Wright was intermittently treated for psychological and psychiatric disorders for a number of years. Her problems apparently originated during childhood and adolescence when she was sexually abused. She was admitted as a psychiatric patient at Mercy Hospital in January and February of 1992. She was thirty-three years old, married, and the parent of two minor children. Wright's diagnosis included depression, posttraumatic stress disorder, suicidal ide-ation and personality disorder.

Mercy had contracted with CCHP, an enterprise which supplies registered nurses on a temporary basis, for the services of Shirley Connelly. CCHP administered Connelly's payroll, but Mercy supervised her professional duties. During Wright's hospitalization, Connelly developed a relationship with Wright which culminated in several sexual encounters following Wright's discharge. Shortly thereafter, Wright filed for a divorce and it was granted in December 1992. The court awarded joint custody of the children, with primary physical placement to Wright's husband.

Wright commenced this action against Connelly, Mercy, CCHP and their respective insurers, alleging professional malpractice in the treatment she received *457 while at Mercy Hospital. Wright alleged that Connelly had mishandled the transference-countertransference phenomenon, a process in which a mental health patient develops a psychological dependence on a care provider, and the provider responds in kind. She claimed that Mercy was negligent both as Connelly's employer and because Mercy's other employees failed to properly detect and manage the transference-countertransference between Wright and Connelly.

Just prior to trial Wright settled with CCHP, its insurer and Connelly. The agreement fully released CCHP and its insurer, but released Connelly only to the extent of her liability for conduct within the scope of her employment with CCHP. Wright also reserved her right to pursue liability claims against other persons or entities for the allegedly improper treatment Wright received during her hospitalization. The trial court dismissed Connelly, CCHP and its insurer from the suit. Mercy did not file a cross-claim against Con-nelly, CCHP, or its insurer for "strategic purposes." Connelly's only participation in the trial was as a witness.

At trial, Wright produced evidence that other Mercy employees had concerns regarding the interactions between Connelly and Wright, some of which were noted in hospital charts. Wright's supervising psychiatrist testified that signs of "transference/countertransference" are matters of concern in treating patients for mental health disorders, and that corrective action would have been taken had the matter been reported. The jury found both Connelly and Mercy to be causally negligent, apportioned negligence seventy-five percent to Connelly and twenty-five percent to Mercy and found that Connelly's negligence was not within the scope of her employment. It awarded *458 $35,000 for past and future physical and emotional pain and suffering, nothing for interference with her family relationships, $350,000 for past and future economic loss and $75,000 for past and future medical expenses. The jury also assessed $250,000 in punitive damages against Connelly. The conduct of Mercy's other employees was found not to be outrageous.

The parties agreed that the court could rule after verdict on the application of § 51.61, STATS., to the action. The trial court concluded that the statute applied to the action and awarded Wright reasonable attorney fees of $123,783.75 and costs of $50,444.80. The court denied Mercy's motion for a new trial and its other post-verdict motions save one. It reduced the jury's award for past and future economic loss from $350,000 to $10,000, concluding that almost all of the economic damages were based upon an impermissible claim for wrongful divorce.

Additional facts will be discussed below.

THE SETTLEMENT AGREEMENT AND DENIAL OF LATE CROSS-CLAIM

Mercy argues that the trial court should have interpreted the pretrial settlement agreement as a full Pierringer release with respect to Connelly. Had it done so, the share of causal negligence apportioned to Connelly would be imputed to Wright. Pierringer v. Hoger, 21 Wis. 2d 182, 193, 124 N.W.2d 106, 112 (1963).

The agreement on its face, however, is a Pierringer release only as to CCHP and its insurer. As to Con-nelly, it is only a partial release, releasing her from liability for her conduct which might be determined to be within the scope of her employment with CCHP. *459 Connelly was not released from liability for her actions within the scope of employment for Mercy or for actions outside the scope of employment. With respect to these remaining avenues of Connelly's liability, the agreement is a covenant not to sue. See Loy v. Bunderson, 107 Wis. 2d 400, 420, 320 N.W.2d 175, 186-87 (1982). The trial court found "that is what it intended to do and it did." We agree. "Releases should be construed to give effect to the intention of the parties-The determination of the intent of the parties to a release is a question of fact and will be upheld unless clearly erroneous." Brandner v. Allstate Ins. Co., 181 Wis. 2d 1058, 1078, 512 N.W.2d 753, 762-63 (1994) (citations omitted).

CCHP, its insurer, Connelly and Wright took great pains to declare their intent in the settlement agreement that Connelly remain fully exposed to all claims of other parties for her acts aside from those determined to be within the coverage of CCHP's insurer. The agreement: (1) explicitly recognized Connelly's potential liability for contribution to Mercy; (2) specifically applied the Pierringer release only to CCHP and its insurer; and (3) declared that it did not "release Con-nelly from her own, direct liability ... or from the liability Connelly has or might have ... for the acts or omissions, negligent or otherwise, committed by her or any other responsible party to the extent she was acting outside the scope of her employment with CCHP and [outside the scope of coverage by CCHP's insurer]."

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Bluebook (online)
557 N.W.2d 846, 206 Wis. 2d 449, 1996 Wisc. App. LEXIS 1460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wright-v-mercy-hospital-of-janesville-wisconsin-inc-wisctapp-1996.