Gray v. White River Health System, Inc., 2016 Ark. 73

Carolyn Gray sued White River Health System, Inc. (d/b/a White River Medical Center) and its insurer (collectively WRMC), Doctors’ Anatomic Pathology Services, Dr. Stephen Locke, and others for medical malpractice and related theories arising from an allegedly misread cancer test.
Gray pleaded claims including failure to intervene, vicarious liability, lack of qualified staff, non-delegable duty, breach of contract, and negligent hiring of an independent contractor.
WRMC moved to dismiss several claims for failure to plead facts showing hospital involvement and moved for summary judgment on vicarious-liability (as to Dr. Locke) and non-delegable-duty claims.
The circuit court granted summary judgment and dismissed various claims, allowed Gray to amend, then granted WRMC’s renewed motions and dismissed the remaining claims; the court issued a Rule 54(b) certificate.
Gray appealed raising negligent hiring, vicarious-liability, and direct-liability claims. The appellate court reviewed whether the circuit court’s order was final under Rule 54(b).

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the court erred dismissing negligent-hiring claim against WRMC	Gray contends dismissal was improper and she pleaded sufficient facts to proceed	WRMC argued Gray failed to state facts tying WRMC to the independent contractor and relied on Paulino controlling dismissal	Appeal dismissed for lack of final order (court did not reach merits); Rule 54(b) certification defective
Whether the court erred dismissing vicarious-liability claims	Gray argued WRMC should be vicariously liable for actors involved in her care, including Dr. Locke	WRMC argued it was not liable as employer/agent for nonemployees and asserted summary judgment was proper as to Dr. Locke	Appeal dismissed for lack of final order; merits not addressed due to defective Rule 54(b) certification
Whether the court erred dismissing claims of direct liability against WRMC	Gray maintained WRMC was directly liable for failures (staffing, nondelegable duties, breach)	WRMC argued Gray failed to plead factual allegations establishing direct hospital liability	Appeal dismissed for lack of final order; merits not reached because Rule 54(b) findings were inadequate

Paulino v. QHG of Springdale, Inc., 386 S.W.3d 462 (Ark. 2012) (hospital independent-contractor and liability principles referenced in motions to dismiss)
Kowalski v. Rose Drugs of Dardanelle, Inc., 357 S.W.3d 432 (Ark. 2009) (describing required specific factual findings for Rule 54(b) certification)