Gautreaux v. Internal Medicine Education Foundation, Inc.
336 S.W.3d 526
| Tenn. | 2011Background
- IMEF, a private nonprofit 501(c)(3) foundation, was formed to support UTCOM's internal medicine residency program.
- UTCOM contracts with IMEF to record teaching hours and to reimburse UTCOM faculty, with UTCOM paying IMEF for services rendered at Erlanger.
- IMEF did not choose UTCOM faculty, set compensation, or control subjects or methods of teaching; IMEF acted primarily as a bookkeeper and payer.
- IMEF billed insurers and Medicare for services provided by UTCOM faculty; its tax records show substantial revenue from UTCOM contracts.
- Gautreaux requested IMEF records under the Public Records Act; IMEF refused, asserting it was not a government agency.
- Trial court held IMEF the functional equivalent of a government agency; Court of Appeals affirmed; the questions turned to statutory access under 10-7-503(d).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether IMEF is the functional equivalent of a government agency | Gautreaux contends IMEF operates as a government entity in practice. | IMEF argues it does not perform a governmental function with discretion and is not controlled by government. | IMEF is not the functional equivalent of a government agency. |
| Whether IMEF records fall under the Public Records Act despite not being a government agency | Gautreaux asserts public records access applies through functional equivalence or statutory equal access. | IMEF maintains it is not subject to the Public Records Act as a private nonprofit. | Not applicable since the court first finds no functional equivalence; further analysis under 10-7-503(d) is addressed separately. |
| Whether the records are accessible under Tenn. Code Ann. § 10-7-503(d) for organizations employing no more than two full-time staff | Gautreaux seeks disclosure under the nonprofit exemption if IMEF has more than two staff; findings contradict this. | IMEF has no more than two full-time staff, triggering the exemption. | IMEF is exempt from 10-7-503(d) disclosure because it employs no more than two full-time staff. |
Key Cases Cited
- Cherokee Children & Family Servs., Inc. v. City of Memphis, 87 S.W.3d 67 (Tenn. 2002) (functional equivalence test for private entities with government ties)
- Friedmann v. Corr. Corp. of Am., 310 S.W.3d 366 (Tenn.Ct.App. 2009) (prison services as governmental function, factors for functional equivalence)
- Roberson v. Univ. of Tenn., 912 S.W.2d 746 (Tenn.Ct.App. 1995) (university as government entity for purposes of state law)
- Bogan v. Bogan, 60 S.W.3d 721 (Tenn. 2001) (presumption of correctness for trial court factual findings)
- Memphis Publ'g Co. v. Cherokee Children & Family Servs., Inc., 87 S.W.3d 67 (Tenn. 2002) (scope of Public Records Act and private entities; public oversight)