Hospital Lawsuits Dismissed from State Court | Press Release | 6.27.05
Superior Court Judge John Harvey has dismissed with prejudice two lawsuits that attempted to pursue the class action litigation tossed out by the federal courts earlier this year.
The lawsuits, originally filed by a consortium led by trial lawyer Richard Scruggs of Mississippi, alleged that the uninsured were overcharged and improperly pursued for collections. Scruggs filed suits against more than 50 not-for-profit hospital systems across the country. Some 38 lawsuits that have been heard by federal courts have been dismissed. The dismissal of the Phoebe lawsuits in Superior Court today marks the first case heard by a state court judge that has addressed the merits of the case. Federal judges in Michigan, Texas and New York also threw out state court claims while ruling on the federal claims.
“We are very pleased with today’s court ruling that brings to an end the litigation against Phoebe Putney hospital,” said Lem Griffin, chairman of the Phoebe Health System Board. “This ruling means that our critics have lost their case in all federal courts where there have been rulings and have now lost their case in state court as well.”
Griffin said the nation’s not-for-profit hospitals have maintained the lawsuits were baseless and misdirected. “These wild accusations have been completely and universally dismissed. These rulings in favor of Phoebe come despite the fact that Dr. Bagnato took these cases to one of the richest and most famous trial lawyers of all times, Dickie Scruggs of Mississippi and also enlisted the help of Kekst and Company, a big New York City advertising agency.”
Griffin said Phoebe and the other targeted hospitals are the “nation’s safety net.” He said Phoebe’s board will continue to carry out the mission set out by Judge Francis Flagg Putney when he endowed the hospital in 1911. He noted the Phoebe Care Card, which prequalifies eligible patients for free and charity care.
“We believe this is a model and is an example of the way Phoebe continues to look for ways to assure that all in our community who need care, get care, regardless of their ability to pay.”
Pitts v. Phoebe Putney Health System, Inc., No. 2004CV1991-3 (Ga. Super. Ct. Dougherty County, June 27, 2005).
Causes of action:
- Third Party Breach of Contract
- Breach of Contract
- Implied Right of Action
- Breach of Duty of Good Faith and Fair Dealing
- [Violations of] Georgia Uniform Deceptive Trade Practices Act
- Unjust Enrichment/Constructive Trust
- Injunctive/Declaratory Relief
- Fraud
- Constructive Fraud
- Negligent Misrepresentation
- Breach of Fiduciary Duties
- Negligence
Conclusion:
“[] Plaintiffs’ Complaint fails to state a claim upon which this Court may grant relief. Therefore, Defendants’ Motions to Dismiss are GRANTED
and Plaintiffs’ Complaint is dismissed with prejudice.”
Davis v. Phoebe Putney Health System, Inc., No.2004CV1694-3 (Ga. Super. Ct. Dougherty County, June 27, 2005).
Causes of action:
- Third Party Breach of Contract
- Breach of Contract
- Breach of the Duty of Good Faith and Fair Dealing
- Breach of Charitable Trust
- Violations of the Georgia Uniform Deceptive Trade Practices Act and the Fair Business Practices Act
- Violations of the Emergency Medical Treatment and Active Labor Act (”EMTALA”)
- Unjust Enrichment/Constructive Trust
Amended pleadings:
- Third Party Breach of Contract
- Breach of Contract
- Breach of the Duty of Good Faith and Fair Dealing
- Breach of Charitable Trust
Violations of the Georgia Uniform Deceptive Trade Practices Act and the Fair Business Practices ActViolations of the Emergency Medical Treatment and Active Labor Act (”EMTALA”)Unjust Enrichment/Constructive TrustConclusion:
[] Plaintiffs’ Counts [] fail to state claims upon which this Court may grant relief. Therefore, Defendants’ Motion to Dismiss is GRANTED and Plaintiffs’ Second Amended Complaint is dismissed with prejudice.
Federal judge dismisses suit against hospital | The Clarion Ledger | 3.5.05
A federal judge has dismissed the lawsuit against St. Dominic/Jackson Memorial Hospital that accused the nonprofit of making uninsured patients pay top dollar while letting insured patients enjoy deep discounts.
“There is no legal authority to support the notion that a theory of liability exists” based on the hospital’s nonprofit status, wrote U.S. District Judge Tom S. Lee, following the lead of a federal judge in Little Rock, Ark.…
Ridgeland lawyer David Merideth, who has brought the nationwide litigation against nonprofit hospitals with Scruggs, said the litigation isn’t going away.
“The hospitals are spinning the dismissals as a win. It is not. The court did not say hospitals are not overcharging patients. The cases can now be brought in state court. All patients should beware of their hospital bill.”
Scruggs attains first hospital settlement in billing suits | Modern Healthcare | 6.29.05
The legal consortium led by Oxford, Miss., attorney Richard Scruggs completed its first settlement with a hospital over its billing of uninsured patients…St. Dominic-Jackson Memorial Hospital in Jackson, Miss., settled with local father-and-son legal team Sonny and David Merideth. [T]he hospital signed a confidentiality agreement with St. Dominic and its terms are undisclosed.…
The decision is Scruggs’ first victory in state court suits after mixed results so far and a string of unfavorable decisions in federal court. Scruggs’ state court effort was dealt a blow Monday when a Georgia judge tossed out on their merits lawsuits against Phoebe Putney Health System and Phoebe Putney Memorial Hospital, Albany, Ga. And Scruggs’ first, widely publicized plan to settle with North Mississippi Medical Center over a federal suit fell apart in April.…
Judge dismisses suit against hospital system | Daily Journal | 6.1.05
OXFORD - A federal judge on Tuesday dismissed a lawsuit involving North Mississippi Health Services and uninsured plaintiffs represented by an attorneys group led by Oxford lawyer Richard “Dickie” Scruggs.
U.S. District Judge Michael P. Mills said the case is identical to “dozens of other actions filed in federal district courts nationwide against nonprofit hospitals.” The lawsuits claim uninsured patients paid higher rates than others.
In his 10-page order, Mills said he doesn’t have jurisdiction to hear the case. However, he didn’t deny that the plaintiffs have state claims. Those could be filed in circuit court.…
Scruggs admitted disappointment in Mills ruling, but said he was “very encouraged” by what the federal judge said in his order about the hospital’s business practices. “We are by no means through,” he said in a telephone interview from New York.…
Scruggs and North Mississippi 1, 2, 3.
2 tosses (Phoebe Putney) + 1 fold (St. Dominic/Jackson Memorial Hospital) + 1 reversal (on the MOU, North Mississippi Medical Center, federal toss for no jurisdiction doesn’t count) = 0
Modern Healthcare’s characterization of “Scruggs’ first victory in [] court,” is not accurate — a settlement prior to or during trial is not a “victory in [] court,” no decision on merits has occurred. St. Dominic/Jackson Memorial Hospital is not on a par with the Phoebe Putney’s cases — which were tossed due to failures to state claims for which the court may grant relief.
hat tip KKS at Phoebe Putney