Sternberg v. Nanticoke Memorial Hosp., Inc.
2013 Del. LEXIS 109
| Del. | 2013Background
- Sternberg sued Nanticoke Memorial Hospital and associated executives after a precautionary suspension of his clinical privileges.
- Nanticoke asserted immunity under HCQIA and sought attorney’s fees under HCQIA and the Credentials Policy.
- The Superior Court granted fees under the Credentials Policy; it had denied HCQIA-based fees and later awarded costs.
- On appeal, the court affirmed immunity but reversed HCQIA fees and remanded for further proceedings; the Superior Court subsequently awarded fees and costs under the Credentials Policy.
- The case centers on whether the Credentials Policy’s fee-shifting provision is enforceable and whether procedures for the precautionary suspension complied with the Policy, plus whether fee amounts were reasonable.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Credentials Policy fee shift conflicts with public policy | Sternberg argues the bylaw violates public policy. | Nanticoke contends the HCQIA does not preclude private fee shifts and the policy is valid. | Policy valid; private fee shifting permitted under contract. |
| Whether Nanticoke breached the Credentials Policy by procedural lapses | Sternberg asserts the suspension procedure was not properly followed. | Nanticoke followed the executive/CEO authority and MEC review as specified. | No breach; procedures were properly followed; moot regarding non-suspension aspects. |
| Whether the fee award was an abuse of discretion in amount | Sternberg challenges the fee calculation given partial success on appeal. | Nanticoke argues reasonable fees under Delaware contract fee-shifting standards. | No abuse; trial court properly weighed the Delaware factors for reasonableness. |
Key Cases Cited
- Roadway Express v. Folk, 817 A.2d 772 (Del.2003) (American Rule; fee shifting allowed by contract)
- Mahani v. EDIX Media Group, Inc., 935 A.2d 242 (Del.2007) (fee-shifting; reasonableness factors)
- Tandycrafts, Inc. v. Initio Partners, 562 A.2d 1162 (Del.1989) (American Rule; contractual fee shifting)
- Arcambel v. Wiseman, 3 U.S. 306 (U.S. 1796) (early precedent on public policy and contracts)
- Bryan v. James E. Holmes Reg'l Medical Ctr., 33 F.3d 1318 (11th Cir.1994) (contractual fee shifting in healthcare peer review)