El Paso Healthcare System, Ltd., D/B/A Las Palmas Medical Center v. Laura Murphy
518 S.W.3d 412
| Tex. | 2017Background
- Laura Murphy, a certified registered nurse anesthetist, worked as an independent contractor for West Texas OB Anesthesia and required hospital credentialing to take shifts at Las Palmas Medical Center (El Paso Healthcare). She was not a hospital employee and had no guaranteed shifts.
- During an overnight shift, Murphy believed Dr. Harlass failed to obtain a patient’s informed consent for a C-section after a brief in-room discussion; the patient ultimately consented and the delivery was uneventful.
- The next morning Murphy reported Harlass’s conduct to the hospital’s ethics coordinator and expressed fear of retaliation; shortly thereafter West Texas OB told Murphy not to return to Las Palmas pending investigation.
- Murphy later refused to attend a credentialing-committee meeting when her request to have counsel present was denied, and she sued El Paso Healthcare for statutory retaliation (Tex. Health & Safety Code §161.135) and tortious interference with her business relationship with West Texas OB.
- A jury found El Paso Healthcare liable for retaliation and tortious interference and awarded damages; the court of appeals affirmed. The Texas Supreme Court granted review and reversed, rendering judgment that Murphy take nothing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §161.135 protects a non-employee who reports conduct she reasonably and in good faith believes violates the law | Murphy: statute protects reports made in good faith; good-faith reasonable belief is sufficient (analogous to Whistleblower Act) | El Paso: statute requires reporting conduct that in fact violates the law; good-faith belief alone is insufficient | The Court: §161.135 protects reports made in good faith (reasonable belief), not only reports of conduct that in fact violated the law |
| Whether Murphy proved she reported a legal violation in good faith | Murphy: she subjectively believed informed consent was not obtained and reported accordingly | El Paso: no evidence that Murphy’s belief was objectively reasonable given her absence from the in-room discussion | The Court: Murphy lacked evidence that her belief was objectively reasonable; no good-faith report was proven, so retaliation claim fails |
| Whether tortious interference claim is viable where contractor relationship was terminable-at-will / non-guaranteed scheduling | Murphy: she had an existing business relationship with West Texas OB that could support interference with contract | El Paso: there was no breach of any contractual term because West Texas OB had no obligation to schedule shifts; any interference thus could not impair contractual rights | The Court: no evidence that El Paso induced breach of any term of Murphy’s contract with West Texas OB; tortious-interference claim fails |
| Whether legal-justification or independently tortious-conduct defenses defeat interference claim | Murphy: not directly contested at summary | El Paso: asserted legal justification and that any interference was not independently tortious | The Court: legal-justification jury finding against El Paso was not challenged; but on the merits no interference with contractual rights was shown, so claim fails |
Key Cases Cited
- City of Elsa v. Gonzalez, 325 S.W.3d 622 (Tex. 2010) (good-faith belief requirement under Whistleblower Act discussed)
- Wichita County v. Hart, 917 S.W.2d 779 (Tex. 1996) (two-prong good-faith test: subjective belief and objective reasonableness)
- Sterner v. Marathon Oil Co., 767 S.W.2d 686 (Tex. 1989) (legal justification privilege in tortious-interference context)
- Holloway v. Skinner, 898 S.W.2d 793 (Tex. 1995) (tortious interference requires inducement of breach of contract)
- Wal-Mart Stores, Inc. v. Sturges, 52 S.W.3d 711 (Tex. 2001) (distinguishing interference with existing contract and prospective relations)
- Ritchie v. Rupe, 443 S.W.3d 856 (Tex. 2014) (statutory construction principles; read statute as whole)