Doctors Hospital At Renaissance, Ltd. v. Andrade
493 S.W.3d 545
Tex.2016Background
- Dr. Rodolfo Lozano, a licensed physician with admitting privileges at Women’s Hospital at Renaissance, was a limited partner in Doctors Hospital at Renaissance, Ltd. (Renaissance), which owned and operated the hospital; RGV Med was Renaissance’s general partner.
- Lozano delivered the Andrades’ baby at the hospital; plaintiffs alleged his obstetrical care caused permanent injury and sued Lozano, Renaissance, and RGV Med (and nonsuited a separate physician professional association).
- Renaissance and RGV Med moved for summary judgment asserting the partnership cannot be vicariously liable for Lozano’s medical negligence because he was not acting in the ordinary course of the partnership’s business nor with partnership authority under Tex. Bus. Orgs. Code § 152.303.
- The trial court denied summary judgment; the court of appeals affirmed, finding a fact issue; the Texas Supreme Court granted review on the controlling legal question.
- The Supreme Court examined whether a limited partnership that owns a hospital can be vicariously liable for a limited partner–physician’s medical malpractice, and whether the general partner can be liable as well.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a limited partnership that owns a hospital can be vicariously liable for a physician–limited partner’s malpractice under §152.303 | Renaissance’s partnership purpose language and statements about offering obstetrical services create a fact issue that providing obstetrical care falls within partnership business or authority | Partnership operates hospital facilities and supplies only; practice of medicine is performed by licensed physicians, not the partnership; partnership agreement forbids limited partners from acting on behalf of partnership | Partnership not vicariously liable: ordinary course of partnership business does not include practicing medicine and Lozano lacked partnership authority |
| Whether the partnership agreement or conduct gave Lozano authority to act on behalf of the partnership when treating patients | Broad partnership purposes and some testimony support an inference limited partners provided obstetrical services as agents of Renaissance | Agreement expressly forbids limited partners from acting for the partnership; admitting privileges derive from hospital/medical licensing independently of partnership authority | No partnership authority shown; admitting privileges are separate from partnership authorization |
| Whether a limited partner’s alleged medical negligence can render the general partner (RGV Med) liable | Plaintiffs seek recovery from RGV Med as general partner of Renaissance | General partner’s liability depends on partnership liability under chapter 153; if partnership not liable, general partner not vicariously liable | RGV Med not liable because Renaissance not liable |
| Whether the existence of physician partners or statements about medical services converts Renaissance into a professional practice partnership under §152.055 | Plaintiff contends partnership’s activities and descriptions could make it akin to a professional-partner practice | Renaissance is an ordinary limited partnership with mixed partners and broader purposes, not organized under §152.055 | Renaissance is not a §152.055 professional partnership; Jones and §152.055 analogies distinguishable |
Key Cases Cited
- Randol Mill Pharmacy v. Miller, 465 S.W.3d 612 (Tex. 2015) (construing Occupations Code provisions in medical-liability context)
- St. Joseph Hosp. v. Wolff, 94 S.W.3d 513 (Tex. 2003) (discussing corporate control and illegal corporate practice of medicine)
- Gupta v. E. Idaho Tumor Inst., Inc., 140 S.W.3d 747 (Tex. App.—Houston [14th Dist.] 2004) (analyzing when an entity exerts unlawful control over a physician’s practice)
- Carl J. Battaglia, M.D., P.A. v. Alexander, 177 S.W.3d 893 (Tex. 2005) (professional associations’ vicarious liability for employees or agents)
- Cook v. Brundidge, Fountain, Elliott & Churchill, 533 S.W.2d 751 (Tex. 1976) (partnership liability principles relating authority to ordinary course of business)
- Jones v. Foundation Surgery Affiliates of Brazoria County, 403 S.W.3d 306 (Tex. App.—Houston [1st Dist.] 2012) (distinguished: outpatient-surgery partnership organized as physician practice)
- Peterson Grp., Inc. v. PLTQ Lotus Grp., L.P., 417 S.W.3d 46 (Tex. App.—Houston [1st Dist.] 2013) (limited-partnership general partner liabilities)
- Columbia Rio Grande Healthcare, L.P. v. Hawley, 284 S.W.3d 851 (Tex. 2009) (general rule that hospitals are not vicariously liable for actions of medical staff)