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970 F.3d 1126
9th Cir.
2020
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Background

  • Dr. David Henry, a board-certified surgeon, contracted with Adventist Health Castle Medical Center under a Physician Recruitment Agreement and an On‑Call Agreement that labeled him an "independent contractor."
  • Under the On‑Call Agreement Henry covered five on‑call days per month, was paid $100 per no‑event shift or $500 per emergency, received 1099s, had no employee benefits, and reported income as self‑employed.
  • Henry leased OR time at Castle, treated his own patients, maintained privileges and performed surgeries at a competing hospital, and could arrange backup coverage while on call.
  • Castle controlled selection and payment of surgical assistants, required compliance with hospital policies and peer‑review, and reviewed Henry’s cases, leading to a suspension of his clinical privileges after a quality review.
  • Henry sued under Title VII for race discrimination and retaliation; the district court granted summary judgment for Castle, holding Henry was an independent contractor; the Ninth Circuit affirmed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Employee status under Title VII Henry: Hospital’s control over assistants, equipment, mandatory standards, and peer review show employer control Castle: Payment structure, tax treatment, contract label, lack of benefits, ability to work elsewhere show independent contractor status Henry was an independent contractor; not an employee under Darden; summary judgment affirmed
Denial of Rule 56(d) continuance/discovery Henry: Additional discovery would reveal facts opposing summary judgment Castle: Henry failed to identify specific facts discovery would produce Denial affirmed — Henry did not meet Rule 56(d) affidavit requirement
Denial of Rule 59(e) motion/reconsideration Henry: Belated declaration and evidence warranted reconsideration Castle: Evidence could have been presented earlier; reconsideration improper Denial affirmed — new evidence was untimely and could have been raised earlier
Post‑judgment motion to amend complaint Henry: Sought to add claims after judgment Castle: Amendment requires reopening judgment under Rule 59/60 first Denial affirmed — amendment improper after entry of judgment without reopening

Key Cases Cited

  • Darden v. Nationwide Mut. Ins. Co., 503 U.S. 318 (1992) (common‑law right‑to‑control test for employee status)
  • Bonnette v. Cal. Health & Welfare Agency, 704 F.2d 1465 (9th Cir. 1983) (employee status is a question of law when facts undisputed)
  • Adcock v. Chrysler Corp., 166 F.3d 1290 (9th Cir. 1999) (Title VII protects employees, not independent contractors)
  • Cilecek v. Inova Health Sys. Servs., 115 F.3d 256 (4th Cir. 1997) (physician‑hospital independent contractor analysis)
  • Murray v. Principal Fin. Grp., Inc., 613 F.3d 943 (9th Cir. 2010) (no functional difference between economic realities and Darden tests)
  • Barnhart v. N.Y. Life Ins. Co., 141 F.3d 1310 (9th Cir. 1998) (independent contractor where worker operated business with autonomy)
  • Alexander v. Rush N. Shore Med. Ctr., 101 F.3d 487 (7th Cir. 1996) (physician treated own patients and lacked employee benefits—contractor status)
  • Shah v. Deaconess Hosp., 355 F.3d 496 (6th Cir. 2004) (tax treatment and lack of W‑2 support independent contractor finding)
  • Salamon v. Our Lady of Victory Hosp., 514 F.3d 217 (2d Cir. 2008) (intensive hospital control can create factual dispute on employment status)
  • Mitchell v. Frank R. Howard Mem’l Hosp., 853 F.2d 762 (9th Cir. 1988) (physician employment claim survived motion to dismiss under different factual allegations)
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Case Details

Case Name: David Henry v. Adventist Health Castle Med.
Court Name: Court of Appeals for the Ninth Circuit
Date Published: Aug 14, 2020
Citations: 970 F.3d 1126; 19-16010
Docket Number: 19-16010
Court Abbreviation: 9th Cir.
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    David Henry v. Adventist Health Castle Med., 970 F.3d 1126