Lead Opinion
Dеfendant-Appellant Aspen Valley Hospital District (“the Hospital”) brings this interlocutory appeal of the district court’s denial of its claim that the Colorado Governmental Immunity Act grants it immunity from suit. We consider two issues on appeal. First, do we have subject matter jurisdiction to hear interlocutory appeals from the denial of immunity from suit when state law creates the immunity? Second, did the district court correctly hold that the Colorado Governmental Immunity Act does not provide the Hospital with immunity from suit? We hold that this Court has subject matter jurisdiction to hear the appeal and we REVERSE in part and REMAND in part, pursuant to the notice provisions of the Colorado Governmental Immunity Act.
I. Background
This case comes to us from a motion to dismiss. The facts as stated in the Amended Complaint follow.
Resistance emerged to the opening of the Plaintiffs’ practice in the summer of 1996. For example, a member of Orthopedic Associates stated at that time that the Plaintiffs would “ ‘starve’ in the Aspen area and ... ‘never’ get referrals from the Emergency Department ... at the Hospital.” In the fall of 1996, Doctors Brazina and Nadler sought staff privileges at the Hospital, which it only granted after an unduly extensive credentialing process.
After Doctors Brazina and Nadler obtained credentials, the Plaintiffs sought to obtain orthopedic referrals from the Snow-mass Clinic and the Hospital. Because Orthopedic Associates partially owned the Snowmass Clinic, it refused to make referrals to the Plaintiffs. The Hospital’s inter-' nal policy mandated that it refer patients to the orthopedic surgeon on-call. Nevertheless, the Aspen Emergency Medicine, P.C., doctors, who ran the Hospital’s emergency room, referred all patients to Orthopedic Associates. On an unspecified date, A.O.S.M. registered a complaint with the Hospital regarding this failure to refer patients.
In the winter or early spring of 1997, the Hospital, using public funds, opened a new facility, the Midvalley Medical Center. The Plaintiffs attempted to rent space in this new facility, but the Hospital signed an exclusive lease with Orthopedics Associates and granted it management rights over the surgery center at the new facility. As manager of the Midvalley Medical Center, Orthopedics Associates refused to grant Doctor Nadler staff privileges. On April 29, 1997, “A.O.S.M. presented the issue of its exclusion frоm the [Midvalley Medical Center] to the Board of [the Hospital].”
The Plaintiffs subsequently filed a twenty-one count complaint alleging violations of the Sherman Act, state antitrust laws, breach of contract, and tort claims. The district court acquired subject matter jurisdiction over the Sherman Act claims pursuant to 28 U.S.C. § 1337 and took supplemental jurisdiction over the state law claims pursuant to 28 U.S.C. § 1367.
Of interest to this interlocutory appeal, the Plaintiffs brought three tort claims against the Hospital. Count XIII alleges that the Hospital was negligent in not enforcing its patient referral policy. Count XVI alleges the Hospital was negligent in subjecting Doctors Brazina and Nadler to an overly burdensome credentialing process. And Count XVIII alleges that the Hospital tortiously interfered with prospective business relationships between the Plaintiffs and orthopedic patients.
The Hospital filed a motion to dismiss on several grounds, which was referred to a magistrate judge. At issue here, the Hospital argued that, with regard to the three tort claims, it was immune from suit pursuant to the Colorado Governmental Immunity Act (“CGIA”). See Colo.Rev. Stat. § 24-10-101 et seq. The magistrate judge recommended denial of the Hospital’s motion because the CGIA waived immunity for the claims alleged by the Plaintiffs. Upon de novo review, the district court agreed with the magistrate judge’s analysis and denied the Hospital’s motion to dismiss. This interlocutory appeal followed.
A. Standard Of Review
“The court’s function on a Rule 12(b)(6) motion is not to weigh potential evidence that the parties might present at trial, but to assess whether the plaintiffs complaint alone is legally sufficient to state a claim for which'relief may be granted.” Sutton v. Utah State Sch. for Deaf & Blind,
B. Subject Matter Jurisdiction Over Interlocutory Appeals Challenging The Denial Of State Law Created Immunity From Suit
We find that we have subject matter jurisdiction to hear the Hospital’s appeal from the district court’s denial of its state-law immunity from suit. This conclusion derives from a combination of the teachings of Erie Railroad Co. v. Tompkins,
■ Applying this analysis in the instant case is straightforward. Pursuant to the federal collateral order doctrine, we have subject matter jurisdiction to hear “appeals, of orders denying motions to dismiss where the motions are based on immunity from suit.” Decker,
The Plaintiffs’ objections to this conclusion are unpersuasive. First, the Plaintiffs argue that hearing this interlocutory appeal would allow a Colorado statute to define this Court’s subject matter jurisdiction. We disagree. As the Erie analysis above illustrates, federal, not state, law controls the appealability of the district court’s order. Sheth,
Next, the Plaintiffs argue that hearing this appeal would serve no purpose because their antitrust claims for injunctive relief remain viable below. We have previously rejected this same argument. DeVargas v. Mason & Hanger-Silas Mason Co., Inc.,
Finally, the Plaintiffs argue that Walton v. State,
C. Compliance With The Noticp Provisions Of The Colorado Governmental Immunity Act
The notice provisions of the CGIA apply when federal courts hear Colorado tort claims under supplemental jurisdiction.
1. The Provisions of Section 21-10-109(1)
Sub-section one of the CGIA notice provision reads:
Any person claiming to have suffered an injury by a public entity ..., whether or*839 not by a willful and wanton act or omission, shall file a written notice as provided in this section within one hundred eighty days after the date of the discovеry of the injury, regardless of whether the person then knew all of the elements of a claim or of a cause of action for such injury. Compliance with the provisions of this section shall be a jurisdictional prerequisite to any action brought under the provisions of this article, and failure of compliance shall forever bar any such action. Colo.Rev.Stat. § 24 — 10—109(1).
Accordingly, “[t]he CGIA[, section 24-10-109(1),] requires that anyone who has a claim against ... [a state entity] must file a written notice of the claim within one hundred eighty days after the date of the discovery of the injury, regardless of whether the person then knew all of the elements of a claim or of a cause of action for such injury.” Gallagher v. Bd. of Trs. for Univ. of N. Colo.,
The Colorado Supreme Court has determined that written notice is provided pursuant to Section 24-10-109(1) only when that written notice contains a demand for monetary damages.
“[W]e interpret the term ‘written notice’ in section 24-10-109(1) to mean written notice of a claim, we hold that any documents on which a plaintiff relies to satisfy the requirements of section 24-10-109(1) necessarily must assert a claim by including a request or demand that the defendant public entity or employee pay the plaintiff an award of monetary damages .... [Indeed,] the request for payment of monetary damages is what shows that a document is a notice of a claim under section 24.-10-109(1).” Mesa County Valley School Dist. No. 51 v. Kelsey,8 P.3d 1200 , 1205 (Colo.2000) (emphasis added).
Thus, if the Plaintiffs failed to submit a written demand for monetary damages within 180 days after they discovered, or should have discovered, their injury, this omission operates as a jurisdictional bar to the lawsuit.
Colorado courts strictly construe section 24-10-109(1) and consistently hold that “[complying with the notice of claim [as set forth in section 24-10-109(1)] is a jurisdictional prerequisite to suit.” Gallagher,
2. Pleading Compliance with Section 24-10-109(1)
In addition to construing its terms strictly, Colorado courts consistently hold that a plaintiff must plead compliance with the CGIA’s noticе provisions in the complaint to avoid dismissal. See Kratzer v. Colorado Intergovernmental Risk Share Agency,
In the context of a motion to dismiss, pleading compliance with the notice provisions of the CGIA is de facto jurisdictional. “The court’s function on a Rule 12(b)(6) motion is not to weigh potential evidence that the parties might present at trial[.]” Sutton,
The Plaintiffs fail to allege compliance with the CGIA notice provisions. Generally, an allegation such as the following would suffice: “Plaintiff fully complied with the provisions of Colo.Rev.Stat. section 24-10-109.” Here, we are not presented with such a succinct allegation of compliance. Instead, in an effort to give the Amended Complaint the most liberal reading, we forage through the Amended Complaint for allegations of compliance with section 24-10-109(1). See Sutton,
1. Doctors Brazina and Nadler’s Failure To Plead CGIA Compliance
Although we read the Amended Complaint in the light most favorable to the Plaintiffs, the Plaintiffs ■ fail to plead that all three Plaintiffs filed individual notices of claims against the Hospital. Here, the Amended Complaint only alleges that A.O.S.M., not Doctors Brazina and Nadler, filed complaints with the Hospital. Thus, Doctors Brazina and Nadler fail to allege that they filed a written notice with the Hospital demanding monetary damages within 180 days of discovery of, or when they should have discovered, their injuries as required by section 24-10-109(1). See Gallagher,
Doctors Brazina and Nadler’s role as the principals' of A.O.S.M. has no bearing on this analysis. In DeForrest, the Colorado Court of Appeals faced a similar issue. In that case, the plaintiff sought to recover from a state entity for the wrongful death of his wife both in his individual capacity and as executor of his wife’s estate. Id. at 386. The husband, however, only filed CGIA notice in his individual capacity. Id. at 387. The Colorado court barred the claim on behalf of the estate for failure to comply with the CGIA notice provisions, even though the executor of the wife’s estate was also the plaintiff who properly filed CGIA notice in his individual capacity. Id. (“Here, only one notice of claim, by husband individually, was served on the governmental entities.... We conclude that any action by wife’s estate for damages is barred for failure to give the requisite notice pursuant to the [C]GIA.”).
The DeForrest decision compels a similar result here. Although Doctors Brazina and Nadler are identifiable with A.O.S.M., all three Plaintiffs are distinct legal entities who, pursuant to DeForrest, must have provided separate notices of their claims against the Hospital. Id.
When faced with situations in which a plaintiff fails to plead compliance with the CGIA, Colorado courts have taken two courses of actions. First, if the plaintiff fails to plead compliance and cannot cure this defect, Colorado courts dismiss the claims with prejudice. See, e.g., Jones,
Here, unlike in Jones, it is not clear from the record whether Doctors Brazina and Nadler can cure their deficient pleading by amendment. Also, unlike Morgan, Doctors Brazina and Nadler have not proved comрliance with the CGIA at trial. Given these circumstances, we find that a Colorado court would dismiss their claims without prejudice. If the Plaintiffs believe that they can cure their insufficient Amended Complaint, they can move for leave to file a second amended complaint and plead compliance with the CGIA notice provisions. See Fed.R.Civ.P. 15(a) (“[L]eave [to amend the complaint] shall be freely given when justice so requires.”). Therefore, Doctors Brazina and Nadler’s Counts XIII, XVI and XVIII should be dismissed without prejudice.
2. Factual Issue as to AO.S.M.’s CGIA Compliance
It is unclear from the face of the Amended Complaint whether A.O.S.M. in fact complied with section 24-10-109(1). Nevertheless, we read the Plaintiffs’
A.O.S.M. alleges that it twice filed grievances with the Hospital. The first grievance presented to the Hospital, as alleged in paragraph 69.of the Amended Complaint, fails to include a date or even a rough time frame of when A.O.S.M. filed this protest. This allegation, then, provides no basis for determining when it gave notice and if the notice was timely. Gallagher,
The Plaintiffs do include a date, April 29, 1997, for A.O.S.M.’s second grievance to the Hospital. Nevertheless, it is unclear, based merely upon the Amended Complaint, if the April 29, 1997, grievance was timely. In paragraphs 12, 54, and 55 of the Amended Complaint, the Plaintiffs allege that they first knew of their purported injuries in the summer of 1996. In paragraрhs 56, 57, 63, and 76 of the Amended Complaint, however, the Plaintiffs allege that they first knew of their purported injuries in the fall of 1996 or late 1996. If the scope of A.O.S.M.’s injuries are limited to the failure to lease space at the Midvalley Medical Center or injuries occurring in late 1996, this second grievance may well constitute timely notice. On the other hand, if the scope of A.O.S.M.’s injuries include those dating back to the summer or early fall of 1996, it may not be timely. The Amended Complaint itself does not resolve this issue.
This set of circumstances differs from those presented by Doctor Brazina and Nadler’s claims. As to the Doctors’ claims, the Amended Complaint contains no allegations that written notices were filed at all. Thus, there can be no factual issue as to whether a non-alleged notice contained а demand for monetary damages or timely filed. A.O.S.M.’s claims, on the other hand, do allege that written notice was filed. We find that these allegations of filed written notice sufficiently raise a factual question as to whether these notices contained a monetary demand and were timely. Therefore, unlike the claims brought by Doctors Brazina and Nadler, Colorado law requires us to remand A.O.S.M.’s tort claims to the district court. Gallagher,
III. Conclusion
For the forgoing reasons, we REVERSE with instructions for thе district court to dismiss Counts XIII, XVI and XVIII of the Amended Complaint without prejudice, as they relate to Doctors Brazi-na and Nadler, and REMAND Counts XIII, XVI and XVIII, as they relate to A.O.S.M., for a factual determination of whether it gave timely notice that demanded monetary damages.
Notes
. Plaintiff-Appellees are Dr. Gary Brazina and Dr. Stephen Nadler, both orthopedic surgeons, and their company, Aspen Orthopaed-ics & Sports Medicine, LLC. We refer to all three Appellees as “the Plaintiffs,” and to "Doctor Brazina,” "Doctor Nadler” and "A.O.S.M." when we reference the Appellees individually.
. Presumably, Count XVIII references the Hospital’s failure to lease space at the Midval-ley Medical Center as well as its failure to refer patients from the emergency room of the Hospital, but this is unclear.
. In King v. United States,
. The Colorado Supreme Court has held that sections 24-10-109(3) and 24-10-109(6) are not jurisdictional requirements, but rather create affirmative defenses. Brock v. Nyland,
. Although the Colorado Supreme Court has not passed on this issue, the Colorado Court of Appeals has addressed it several times. "While not binding on this court, 'decisions by a state's intermediate appellate courts provide evidence of how the state’s highest court would rule on the issue, and we can consider them as such.’ ” Craven v. Univ. of Colo. Hosp. Auth.,
. Cf. Gallagher,
. The Plaintiffs fail to allege a specific date for this complaint to the Hospital.
. Although the Colorado Court of Appeals decided Jones and Deason v. Lewis,
. Colo. R. Civ. P. 15(b), which is identical to the federal rule, states: "When issues not raised by the pleadings are tried by express or implied consent of the parties, they shall be treated in all respects as if they had been raised in the pleadings.”
Concurrence Opinion
concurring and dissenting:
I concur in Parts I, 11(A), and 11(B) of the majority opinion. I dissent, however, from Part 11(C) of the majority opinion which dismisses sua sponte Drs. Brazina’s
I.
In Part 11(A), the majority correctly holds that we have subject matter jurisdiction to hear the Hospital’s interlocutory appeal.
Plaintiffs contend this court lacks jurisdiction to hear the interlocutory appeal because the order from which the Hospital appeals is not a final decision under 28 U.S.C. § 1291, nor does it meet any statutory or common law exception to the final judgment rule. Resolution of this issue is complicated by the fact that the CGIA includes its own reference to “final judgments” in Colo.Rev.Stat. §§ 24-10-108 and 24-10-118(2.5), which provide that orders denying motions to dismiss complaints on sovereign immunity grounds are final judgments for purposes of taking interlocutory appeals.
This court has interpreted the third requirement to mean that “where rights will not be irretrievably lost in the absence of an immediate appeal, collateral review is not available.” In re Magic Circle Energy Corp.,
II.
I disagree, however, with the sua sponte dismissal of Drs. Brazina’s and Nadler’s (the doctors) tort claims for failure to plead compliance with the CGIA’s notice requirements.
In accordance with this court’s “independent duty to inquire into its jurisdiction over a dispute,” Phelps v. Hamilton,
The procedural context of the case at bar differs significantly from Kratzer, Dea-son, and Jones. In each of those cases, the defendant had filed a motion to dismiss before the trial court alleging the plaintiff had not filed a notice of claim prior to bringing suit as required by section 24-10-109. In the present case, no motion to dismiss for failure to comply with the CGIA notice requirements has been filed, nor has there been any fact finding by the district court on this question. Therefore, unlike Kratzer, Deason, and Jones, the doctors here have not had the opportunity to show compliance “[i]n the context of a motion to dismiss.” Maj. Op. at 840.
The fact of compliance with the CGIA notice requiremеnts, rather than the pleading of compliance was determinative in Kratzer, Deason, and Jones. Any statement in those cases concerning a plaintiffs failure to plead compliance with the CGIA provisions was made only after determining the plaintiff had not provided notice based on the evidence presented to the trial court. See Kratzer,
Colorado courts have repeatedly held that because the inquiry into “[wjhether a claimant has satisfied the [jurisdictional] requirements of section 24-10-109(1) presents a mixed question of law and fact,” Mesa County Valley Sch. Dist. No. 51 v. Kelsey,
The proper course here is to remand the case to the district court for an evidentiary hearing on whether Drs. Brazina and Na-dler provided proper notice as required by section 24-10-109(1). See Gallagher v. Bd. of Tr.,
. The parties have, filed jurisdictional briefs in response to our show cause order directing the parties to address (1) whether the district court’s December 12, 2001, order denying the Hospital's motion to dismiss based on CGIA was a final appealable decision under 28 U.S.C. § 1291, or any recognized exception to the final judgment rule, and (2) whether a state statute, Colo.Rev.Stat. § 24-10-108, may define a federal appellate court's jurisdiction.
. Colo.Rev.Stat. § 24-10-108 states:
Except as provided in sections 24-10-104 to 24-10-106, sovereign immunity shall be a bar to any action against a public entity for injury which lies in tort or could lie in tort regardless of whether that may be the type of action or the form of relief chosen by a claimant. If a public entity raises the issue of sovereign immunity prior to or after the commencement of discovery, the court shall suspend discovery, except any discovery necessary to decide the issue of sovereign immunity, and shall decide such issue on motion. The court’s decision on such motion shall be a final judgment and shall be subject to interlocutory appeal.
Similarly, Colo.Rev.Stat. § 24-10-118(2.5) states:
If a public employee raises the issue of sovereign immunity prior to or after the commencement of discovery, the court shall suspend discovery; except that any discovery necessary to decide the issue of sovereign immunity shall be allowed to proceed, and the court shall decide such issue on motion. The court's decision on such motion shall be a final judgment and shall be subject to interlocutory appeal.
. It is clear the district court order is not a final decision as defined in § 1291. As plaintiffs also correctly note, the "District Court did not expressly certify its decision pursuant to either 28 U.S.C. § 1292(b) or Fed.R.Civ.P. 54(b).” Aple. Br. at 10. The Hospital does not contest this statement and does not assert jurisdiction under this statutory exception.
. As the Hospital artfully contends, this distinction comports with the third requirement — an interlocutory appeal is only needed to protect a right insofar as that entitlement is the right to be free from all litigation; not allowing an interloсutory appeal in that instance will subject that party to litigation. But, if the right is simply to be free from liability, then proceeding to trial will not itself violate that right and requirement three will not be met.
. I concur in the majority’s ultimate holding as it relates to A.O.S.M. Although I do not conclude that Colorado requires a plaintiff to plead compliance with the CGIA as a jurisdictional prerequisite to suit, I do agree the correct outcome as regards A.O.S.M.’s claims in Counts VIII, XV, and XVIII is to remand for a factual determination addressing A.O.S.M.'s compliance with, the CGIA.
. In distinguishing Morgan, the majority concludes it is not bound by the decision because the Colorado Court of Appeals applied Colo. R. Civ. P. 15(b) to reach its conclusion. Maj. Op. at 848 n. 8. I am not persuaded by this distinction. First, as the majority notes, Colo. R. Civ. P. 15(b) has an identical federal counterpart which also states: "When issues not raised by the pleadings are tried by express or implied consent of the parties, they shall be treated in all respects as if they had been raised in the pleadings.” Fed.R.Civ.P. 15(b). To the extent the Colorado procedural rule decides this question of Colorado law, the fact that there is an identical federal rule should weigh heavily in favor of an identical outcome. Second, by relying on Colo. R. Civ. P. 15(b) in the context of deciding whether failure to plead CGIA compliance was jurisdictional, the Colorado Court of Appeals held that such failure was plainly not jurisdictional.
. I would submit we do not know if there is a factual dispute in the present case because the question of notice compliance is being raised for the first time on appeal.
