Schueller v. Goddard
2011 U.S. App. LEXIS 1987
| 8th Cir. | 2011Background
- Drew Memorial Hospital bargained a 2002 emergency service agreement with PA I granting the hospital sole discretion to remove a physician immediately.
- Dr. Schueller was not a party to PA I or to the 2002 emergency service agreement during the relevant period.
- In 2003, Dr. Schueller signed an independent contractor agreement with PA II to provide ER services at Drew Memorial, terminable for reasonable cause.
- Section 4(B)(9) of the PA II contract allows termination if Drew Memorial exercises its removal right, to be determined in Drew Memorial’s sole discretion.
- In 2006–2007, patient complaints led Drew Memorial to request Schueller's removal; Dr. Williams notified him he would not schedule him after January 31, 2007.
- Dr. Schueller sued in 2008 under 42 U.S.C. § 1983 and state law; the district court granted summary judgment for Drew Memorial.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Schueller had a protected property interest in ongoing employment. | Schueller had a legitimate expectation of continued employment under the contracts. | Drew Memorial retained plenary discretion to remove the independent contractor; no entitlement. | No; the contractual discretion defeats a property interest. |
| Whether Drew Memorial's conduct interfered with Schueller's business expectancy. | Drew Memorial improperly interfered with the contract by wrongful conduct. | Drew Memorial acted within its contractual rights to remove Schueller based on complaints. | No; the contract authorized removal, defeating a tortious interference claim. |
Key Cases Cited
- Habhab v. Hon, 536 F.3d 963 (8th Cir. 2008) (discretionary policies do not confer protected property interests)
- Engelstad v. Va. Mun. Hosp., 718 F.2d 262 (8th Cir. 1983) (independent contractor position terminable at hospital's will)
- Howard v. Columbia Pub. Sch. Dist., 363 F.3d 797 (8th Cir. 2004) (unreasonable unilateral expectations cannot create property interests)
- Palmer v. Ark. Council on Econ. Educ., 40 S.W.3d 784 (Ark. 2001) (elements of tortious interference with contract; improper interference required)
- Mason v. Wal-Mart Stores, Inc., 969 S.W.2d 160 (Ark. 1998) (Ark. improper interference elements; third-party knowledge and conduct)