Wrongful Death Estate v. Khawaja
21-2000
| 10th Cir. | Nov 30, 2021Background
- Dr. Khawaja executed a 2017 employment agreement with Nor‑Lea Hospital requiring exclusive services, work days set by the Hospital, compliance with hospital policies, salary paid on hospital payroll (taxes withheld), and Hospital‑provided malpractice insurance, space, equipment, staff, and billing/fee control.
- On Feb 17–18, 2017, Ms. Naegele underwent gallbladder surgery at Nor‑Lea; she died the day after surgery and the Estate alleges untreated post‑surgical complications caused by Khawaja.
- Estate counsel notified the Hospital on March 1, 2017 of the Estate’s intent to sue; the Estate filed an Application with the New Mexico Medical Review Commission on May 21, 2019 and the Commission unanimously found evidence of professional negligence.
- The Estate sued Khawaja in state court on Nov 15, 2019 (removed to federal court). The Estate acknowledges suit was filed more than two years after it discovered the alleged malpractice.
- District court granted summary judgment for Khawaja, concluding the New Mexico Tort Claims Act (TCA) two‑year limitations period applied because Khawaja was a public employee; the Tenth Circuit affirmed.
Issues
| Issue | Plaintiff's Argument (Estate) | Defendant's Argument (Khawaja) | Held |
|---|---|---|---|
| Whether Khawaja is a "public employee" under the TCA | Agreement shows independent contractor status (no fringes, limited term, exercise of professional judgment) | Agreement’s exclusivity, payroll salary, tax withholding, hospital control over hours/termination, provided supplies/insurance, and billing show employee status | Khawaja is a public employee under Blea factors; TCA applies |
| Whether TCA’s 2‑year statute of limitations is displaced by MMA’s 3‑year statute of repose | MMA is the specific statute for medical malpractice and should control, giving a three‑year repose | TCA is the exclusive remedy for torts against public employees and its two‑year limit governs; MMA does not supplant TCA | TCA two‑year limitations applies; MMA repose does not supplant it (repose only caps discovery tolling) |
| Whether equitable estoppel prevents Khawaja from asserting the TCA limitations defense | Khawaja concealed public‑employee status and didn’t assert limitations before the Medical Review Commission, so he should be estopped | No evidence of intent to deceive; failing to raise a legal defense at the Commission is not waiver because the Commission decides facts, not legal defenses | Equitable estoppel rejected for lack of evidence of deceptive intent and no waiver occurred |
| Whether the Medical Review Commission proceedings waived Khawaja’s statute‑of‑limitations defense | Participation without raising limitations equals waiver | Commission is fact‑finder on negligence; legal defenses need not be raised there and Khawaja reserved defenses | No waiver; Khawaja preserved legal defenses and the Commission isn’t the forum to decide statute‑of‑limitations issues |
Key Cases Cited
- Celaya v. Hall, 85 P.3d 239 (N.M. 2004) (TCA is the exclusive remedy for torts where immunity is waived)
- Blea v. Fields, 120 P.3d 430 (N.M. 2005) (factors supporting hospital physician status as public employee)
- Maestas v. Zager, 152 P.3d 141 (N.M. 2007) (discovery rule can toll TCA limitation)
- Cahn v. Berryman, 408 P.3d 1012 (N.M. 2017) (MMA three‑year statute of repose applies without regard to discovery)
- Trujillo v. State, 206 P.3d 125 (N.M. 2009) (plain‑meaning rule governs statutory interpretation)
- Hagen v. Faherty, 66 P.3d 974 (N.M. Ct. App. 2003) (equitable estoppel can bar a public‑employee’s limitations defense when the employer’s conduct reasonably misled the claimant)