97 F.4th 403
6th Cir.2024Background
- Plaintiffs Dwan and Aaron Bray filed a medical malpractice suit in Ohio state court against Dr. Thress and others, related to the prenatal care and delivery of their minor child, N.B., who suffered serious birth injuries.
- Dr. Thress was, unbeknownst to plaintiffs, employed by HealthSource, a federally funded health center, making him eligible for immunity under the Federally Supported Health Centers Assistance Act (FSHCAA).
- The United States removed the case to federal court, substituting itself as a defendant under the Federal Tort Claims Act (FTCA), and moved to dismiss for failure to exhaust administrative remedies, as required by the FTCA.
- Plaintiffs moved to remand (arguing FSHCAA did not apply) and later to amend their complaint to show exhaustion. The district court denied both motions and dismissed the FTCA claim without prejudice.
- On appeal, the Sixth Circuit reviewed both the applicability of the FSHCAA to Thress's conduct and whether FTCA exhaustion could be cured by later amendment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Applicability of FSHCAA/Scope | Thress’s conduct not within FSHCAA scope; relatedness must be determined by HHS Secretary | Conduct was within FSHCAA scope; related to grant-supported activity | FSHCAA applies; district court can decide relatedness |
| Relatedness to Grant Activity | Services at Mercy not related to any grant-supported activity | On-call OB-GYN services at Mercy furthered grant objectives | Conduct was related to grant-supported activity |
| Deeming Regulation (42 C.F.R. § 6.6) | Thress’s duties did not fit squarely within “hospital-related activities” definition | Thress met both on-call and employment condition documentation | Thress met the hospital-related activities coverage |
| FTCA Administrative Exhaustion | Amending complaint after exhaustion should cure initial failure | FTCA bars suit until exhaustion is complete; amendment can’t cure | Dismissal for failure to exhaust was proper |
Key Cases Cited
- Hui v. Castaneda, 559 U.S. 799 (2010) (PHS officers and employees immune from personal liability for acts within their scope of employment)
- McNeil v. United States, 508 U.S. 106 (1993) (FTCA requires complete exhaustion before suit is instituted)
- Kellom v. Quinn, 86 F.4th 288 (6th Cir. 2023) (plaintiff cannot cure FTCA exhaustion defect by amending complaint after filing suit)
- United States v. Wong, 575 U.S. 402 (2015) (equitable tolling applies to FTCA statute of limitations in appropriate cases)
- Osborn v. Haley, 549 U.S. 225 (2007) (government substitution under Westfall Act conclusively establishes federal jurisdiction)