Glenn v. HEALTHLINK HMO, INC.
360 S.W.3d 866
Mo. Ct. App.2012Background
- Glenn entered into HMO and PPO agreements with HealthLink in 2001 to become a network provider.
- HealthLink began termination and non-renewal processes in 2007, issuing notices and offering hearings for some terminations.
- HealthLink later rescinded initial termination notices, then notified continued concerns and non-renewal of the HMO and termination of the PPO.
- Glenn sought injunctive relief and damages; trial court granted summary judgment to HealthLink on several claims.
- On appeal, court reversed summary judgment on two marketing-related breach claims and two in-network pay claims, but upheld other rulings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Marketing obligations breach? | Glenn: HealthLink failed to market beyond online listings. | HealthLink: only listed Glenn; no extra duties proven. | Issue remanded; nominal damages possible; partial reversal. |
| In-network rate payments? | Glenn: HealthLink paid below contracted rates in Nov–Dec 2008. | HealthLink: Glenn paid at in-network rates; records support. | Fact question; summary judgment improper for both HMO and PPO. |
| Hearing before non-renewal/termination? | Glenn: hearing required before non-renewal and prior termination. | No hearing required for non-renewal; termination hearing obligation varied by contract and statute. | HMO: no pre-renewal hearing required; PPO: no contractual obligation to pre-terminate hearing. |
| Good faith termination/non-renewal? | Glenn: HealthLink acted in bad faith. | Actions conformed to contract terms and spirit; no bad faith. | Non-renewal and termination not in bad faith; contract terms control. |
Key Cases Cited
- ITT Commercial Finance Corp. v. Mid-America Marine Supply Corp., 854 S.W.2d 371 (Mo. banc 1993) (summary-judgment standard; light on evidence evaluation)
- Dierkes v. Blue Cross & Blue Shield of Mo., 991 S.W.2d 662 (Mo. banc 1999) (nominal damages available for breach of contract)
- Hanna v. Darr, 154 S.W.3d 2 (Mo.App. E.D.2004) (nominal damages concept in contract breaches)
- Farmers' Electric Co-op., Inc. v. Missouri Dept. of Corrections, 977 S.W.2d 266 (Mo. banc 1998) (implied covenant of good faith and fair dealing; not implied if contract addresses issue)
- Community Health Plan, 81 S.W.3d 34 (Mo.App. W.D.2002) (good-faith duty; may not override contract terms)
- Nationwide Life Ins. Co., 340 S.W.3d 161 (Mo.App. W.D.2011) (no implied duty beyond contract where terms address matter)
- Morrow v. Hallmark Cards, Inc., 273 S.W.3d 15 (Mo.App. W.D.2008) (consideration and promises; revocation of gratuitous promises)
- Vincent v. Schneider, 194 S.W.3d 853 (Mo. banc 2006) (extrinsic evidence only if contract ambiguous)