Nesson v. Northern Inyo County Local Hospital District
204 Cal. App. 4th 65
| Cal. Ct. App. | 2012Background
- Nesson, a radiologist, and the Hospital entered a radiology department service agreement in 2007 for a term that was terminable on 30 days’ notice and extended monthly.
- Nesson was contractually obligated to maintain active medical staff membership with privileges and to oversee radiology operations and personnel.
- In February 2009, the Medical Executive Committee (MEC) gave Nesson a summary suspension for substandard and dangerous patient care and volatile behavior, with a plan for evaluations.
- Following the suspension, the Hospital terminated the Agreement on February 19, 2009, finding it impossible for Nesson to comply while suspended.
- Nesson sought reappointment and later filed suit seeking damages for breach of contract, retaliation, and discrimination, among other claims.
- The Hospital moved to strike under the anti-SLAPP statute; the trial court granted the motion, and the judgment was affirmed on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether anti-SLAPP applies to peer-review actions. | Nesson argues the claims arise from breach of contract and are not protected by peer-review activity. | Hospital asserts claims arise from protected peer-review proceedings and should be struck absent probability of success. | Yes; the actions arise from protected peer-review proceedings and are subject to anti-SLAPP analysis. |
| Whether exhaustion of remedies bars the suit. | Nesson did not exhaust internal remedies before filing suit. | Westlake requires exhaustion before seeking court relief, which was not done here. | Yes; failure to exhaust administrative/judicial remedies bars the claims. |
| Whether the termination of the Agreement was inextricably intertwined with the MEC’s suspension. | Claims target only the contract termination, not the suspension. | Termination was based on the suspension and is inseparable from the peer-review action. | Yes; termination inseparably tied to suspension, constituting protected activity. |
| Whether Nesson can prevail on contract or other claims given the suspension and inability to practice. | Possible to claim damages notwithstanding suspension; contract could be breached independently. | Suspension precluded performance; no damages under contract; no independent tort duty. | No; contractual performance was excused due to suspension; no prevailing claims. |
| Whether FEHA, Unruh, and related claims survive given the PE or disability findings. | Discrimination and disability claims based on perceived impairment. | No evidence of actual disability or failure to accommodate; tied to peer-review actions. | No; claims fail as they rely on the protected peer-review actions. |
Key Cases Cited
- Kibler v. Northern Inyo County Local Hospital Dist., 39 Cal.4th 192 (Cal. 2006) (hospital peer review proceedings are official proceedings protected by anti-SLAPP)
- Westlake Community Hospital v. Superior Court, 17 Cal.3d 465 (Cal. 1976) (exhaustion of remedies before suing for damages in peer-review context)
- Ellison v. Sequoia Health Services, 183 Cal.App.4th 1486 (Cal. App. 2010) (governing body may exercise independent judgment in peer review with weight to findings)
- Medical Staff of Sharp Memorial Hospital v. Superior Court, 121 Cal.App.4th 173 (Cal. App. 2004) (public safety priority; due process rights subordinate in peer review)
- Lee v. Blue Shield of California, 154 Cal.App.4th 1369 (Cal. App. 2007) (exhaustion requirement and mandamus avenues in peer-review context)
- Eight Unnamed Physicians v. Medical Executive Committee, 150 Cal.App.4th 503 (Cal. App. 2007) (exhaustion and administrative remedies in hospital peer review)
- Navellier v. Sletten, 29 Cal.4th 82 (Cal. 2002) (two-prong anti-SLAPP test and required showing of probability of prevailing)
- City of Cotati v. Cashman, 29 Cal.4th 69 (Cal. 2002) (central anti-SLAPP framework and focus on gravamen of action)
- Flatley v. Mauro, 39 Cal.4th 299 (Cal. 2006) (two-step anti-SLAPP analysis and broad construction)