Steven L. Clinch, a heart surgeon, has sued fellow surgeon, Michael E. Nellestein, charging him with tortious interference with one of Clinch’s business relationships. Clinch accuses Nellestein of being the prime cause for his losing his position as a medical director at Heartland Regional
The circuit court granted summary judgment for defendants on both causes of action. We affirm summary judgment of Clinch’s antitrust claims but reverse summary judgment of his tortious interference claim and remand for further proceedings.
The basis for this dispute apparently began fomenting during 1999 when Nelle-stein was director of Heartland Regional’s vascular surgery and expressed concern that the hospital’s heart program was not “moving forward effectively.” Clinch was the hospital’s medical director of cardiac surgery. Nellestein mentioned some of his concerns to Curtis Kretzinger, the hospital’s chief operating officer, and to Steven McCamy, administrator of the hospital’s medical group. When Nellestein met with Kruse during spring 1999 to discuss his pay, he presented data comparing his production with Clinch’s. He met with Kruse again, sometime during late 1999 or early 2000, to discuss extending his contract and removing Scott Koellicker, an administrator who supervised the hospital’s cardiac surgery, from Nellestein’s chain of command.
During June 2000, while Nellestein was on leave, Clinch performed 17 surgeries. When Nellestein returned, someone told him that complications had beset Clinch’s surgeries. Nellestein reviewed records of Clinch's surgeries, but he did not try to determine the complications’ causes. At some point, apparently after November 2000, Nellestein recorded that the surgeries had a “35% major complication rate.”
Charles Mullican, the hospital’s chief medical officer, became aware of complications with Clinch’s surgeries. Nellestein acknowledged that he may have told Mulli-can of the complications, but he did not give Mullican a written analysis or complain about Clinch’s performance.
Sometime during July or August 2000, Nellestein told Kretzinger during a hallway conversation that he was not content at Heartland Regional and was considering leaving the hospital’s staff. Nellestein’s discontentment surprised Kretzinger. He later summoned Nellestein to his office where Nellestein expressed concerns that the hospital’s heart program was “not moving forward effectively” and noted problems with infection rates, referrals, volume, and results. He expressed specific concerns about Clinch’s performance, which Kretzinger characterized in sworn testimony as “vague” and part of Nelle-stein’s general critique of the heart program.
Kretzinger told Heartland Health’s Clinical Business Strategy Group that Nelle-stein had threatened to leave and that he was discussing a list of issues with Nelle-stein. Asked whether or not Nellestein had conditioned his staying at Heartland Regional on Clinch’s removal, Kretzinger responded, “Absolutely not.”
On August 9, 2000, Kruse, Kretzinger, and Nellestein had a dinner meeting during which Nellestein accepted Kruse’s and Kretzinger’s offer of Clinch’s position as medical director of cardiac surgery. They discussed Clinch’s future with the hospital, but whether or not Kruse and Kretzinger
During August and September 2000, Kretzinger initiated a review of Heartland Regional’s cardiac program. He ordered Cindy McCoy, a former infectious disease nurse manager at the hospital, specifically to prepare a report of Clinch’s infection rates. McCoy testified that Kretzinger told her that “Heartland wanted to terminate the contract of Dr. Steven Clinch and use his high infection rates as a reason,” but Kretzinger denied it in his testimony. From McCoy’s review, Kretzinger found no problems with Nellestein’s or Clinch’s morbidity, mortality, or infection rates.
Nellestein signed new contracts with Heartland Regional on October 4, 2000. One made him medical director of the hospital’s cardiac surgery, and the other was an employment agreement. Midwestern Health Management terminated its contract with Clinch during the next day. McCamy later told Clinch that his contract had been terminated “without cause.” Although Heartland Regional administrators expressed willingness for Clinch to continue his staff membership and clinical privileges, Midwestern Health Management refused to release Clinch from a covenant not to compete. On October 6, Heartland Regional contracted with another cardiac surgeon, Jane Schwabe, and hospital administrators removed Koelliker from the heart program chain of command, as Nellestein had requested.
During Spring 2001, Heartland Regional’s administrators realized that, because Clinch’s privileges extended beyond expiration of his covenant not to compete, he would be eligible to return to Heartland Regional as a staff surgeon at the end of the year. Administrators asked an attorney to develop an exclusive contract arrangement for cardiac surgery at Heartland Regional that would prevent Clinch from returning after his non-compete covenant expired.
During July 2001, Clinch notified Heartland Regional that he intended to return to an independent practice at Heartland Regional after his non-compete covenant expired. Mulhcan informed him that the hospital’s board was considering an exclusive arrangement with its current cardiac surgeons. During September, the board decided to exclude, temporarily, non-employed physicians from providing cardiovascular services at the hospital, and the board made the exclusion permanent during March 2002. The exclusion prohibited Clinch from performing services at the hospital.
Clinch sued the defendants for various antitrust violations and several common law claims, including a claim against Nelle-stein for tortious interference. The circuit court granted defendants’ motion for summary judgment on all counts, and Clinch appeals. Clinch did not appeal the circuit court’s order granting summary judgment on his claims for promissory estoppel, fraudulent misrepresentation, and negligent misrepresentation.
Before considering the merits of Clinch’s assertion that the circuit court erred in granting summary judgment on his claim for tortious interference, we address Nellestein’s argument that Clinch is raising a new issue on appeal. Nellestein complains that Clinch averred to the circuit court that Nellestein interfered with his contract, but now, on appeal, he asserts that Nellestein interfered with his business relationship.
Clinch labeled his cause of action against Nellestein as “tortious interference with contract” in both his petition and responses to defendants’ motion for summary judgment. The circuit court also labeled Clinch’s cause of action as “tor-
Appellants cannot raise new issues on appeal, but Clinch is not raising a new issue. The relationship protected by the tort of interference with a business relationship can take several forms including, most obviously, a contractual one. Indeed, the Supreme Court has noted that the protected relationship can be a “contract or a valid business relationship or expectancy.”
Fischer, Spuhl, Herzwwrm and Associates, Inc. v. Forrest T. Jones and Company,
We turn to the merits of Clinch’s contention that the circuit court erred in issuing summary judgment for Nellestein. Our review of the circuit court’s summary judgment is essentially
de novo. ITT Commercial Finance Corporation v. Mid-America Marine Supply Corporation,
[A] “defending party” may establish a right to judgment by showing (1) facts that negate any one of the claimant’s elements facts, (2) that the non-movant, after an adequate period of discovery, has not been able to produce, and will not be able to produce, evidence sufficient to allow the trier of fact to find the existence of any one of the claimant’s elements, or (3) that there is no genuine dispute as to the existence of each of the facts necessary to support the movant’s properly-pleaded affirmative defense.
ITT,
In contending that he was entitled to judgment as a matter of law, Nellestein focuses on two primary issues, both concerning elements of Clinch’s cause of action. The elements of tortious interference with a business relationship are: (1) The plaintiff was involved in a valid business relationship; (2) the defendant was aware of the relationship; (3) the defendant intentionally interfered with the relationship, inducing its termination; (4) the defendant acted without justification; and (5) the plaintiff suffered damages as a direct result of defendant’s conduct.
Rice v. Hodapp,
That Midwestern Health Management did not breach its contract with Clinch and the contract was terminable at will does not free Nellestein from liability. A third party’s interference with contracts terminable at will is actionable, because, until one of the contracting parties terminates the contract, the parties are in a subsisting relation that presumably will continue and is of value to the plaintiff.
Hensen v. Truman Medical Center, Inc.,
Nellestein further asserts that summary judgment was proper because his conduct was justified because he did not use improper means; hence, the circuit court correctly adjudged that Clinch could not establish the fourth element of his cause of action. This element — lack of justification — has been cause for confusion concerning the plaintiffs burden in a tortious interference action. This confusion seems to stem from the distinction between interference with existing contracts and interference with commercial expectancies or future opportunities.
E.g., Downey v. United Weatherproofing, Inc.,
Although both are protected from intentional interference by others, the courts afford greater protection for existing contracts than for business expectancies. The Supreme Court explained in
Downey,
“[T]he right to the performance of an existing contract is a right ... of greater expectancy than is the right to enter into future contracts even in a competitive field.”
A defendant’s interference can be justified on numerous grounds, and clear rules as to what constitutes justification do not exist. But one rule is clear: Regardless of whether plaintiff has a contract or only an expectancy, a defendant’s interference is not justified if he or she employs improper means.
Community Title Company v. Roosevelt Federal Savings and Loan Association,
But improper means is not synonymous with lack of justification. Before 1993, Missouri courts had long held that plaintiffs alleging interference with contract— as opposed to inference with other business relationships — did not need to allege fraud, deceit, coercion, or other improper means.
E.g., Downey,
[T]he language of the Glencoe case ... that actionable wrong is committed not by mere persuasion but only where breach of an existing contract is induced by means of fraud, deceit or coercion is out of harmony with the majority view[.] We believe the allegation and proof of the use of fraud, deceit or coercion as a means of inducing a breach of an existing contract should be considered nonessential to a recovery for inducing the breach of an existing contract, if ... there is alleged (and demonstrated) that the alleged wrongdoer maliciously, that is, with knowledge of the contract and without justifiable cause, induced the breach.
Downey,
The law concerning justification seemingly changed in 1993 when the Supreme Court handed down
Nazeri v. Missouri Valley College,
Courts since
Nazeri
have interpreted that case to mean that plaintiffs must allege and prove in all tortious interference cases that the defendant employed improper means.
E.g., Carter v. St. John’s Regional Medical Center,
In stating its proposition, the
Nazeri
court relied on
Community Title,
That an ongoing contract would enjoy more protection from interference than an expectancy stands only to reason. As the Supreme Court noted in
Downey,
our society prizes free competition in the marketplace; hence, the law tolerates attempts to divert business from competitors so long as it is done by proper means. But, once a party is involved in a contract, the law is intolerant of an intermeddler’s attempt to persuade the party to breach the contract-no matter what the means.
Downey,
Nonetheless, under the dictates of stare decisis, we follow the law as set forth in Nazeri as the Supreme Court’s latest pronouncement. 2 Applying Nazeri to Clinch’s action against Nellestein, Clinch’s burden was to establish that Nellestein used improper means in interfering with Clinch’s contractual relationships with Midwestern Health Management and Heartland Regional.
Clinch argues that Nellestein employed improper means by engaging in misrepresentations, defamation, threats, and antitrust violations. For reasons we explain later, we dismiss his contentions that Nellestein was involved in antitrust violations. Misrepresentations and defamation certainly would constitute improper means, but the parties are much in dispute concerning both, thwarting Nellestein’s motion for summary judgment.
Nellestein asserts, however, that we should affirm the circuit court’s summary judgment because the statements on which Clinch relies to accuse Nellestein of misrepresentations and defamation were expressions of opinion, not of fact. To support a contention of misrepresentation or defamation, Clinch must establish that he was misinforming the hospital’s administrators concerning facts, not merely expressing his opinions.
Kmse Concepts, Inc. v. Shelter Mutual Insurance,
Whether a statement is fact or opinion is a question of law, and we make this determination based on the totality of the circumstances surrounding a given
Nellestein told Kretzinger that he was unhappy with Heartland Regional’s cardiac program. He thought it was not progressing effectively, and he expressed concern about quality outcomes and infection rates, among other things. Looking to the circumstances and context surrounding these statements, he was stating only general concerns and was merely expressing opinions.
Nellestein’s other statements — that Clinch had high infection rates, poor clinical outcomes, and a 35 percent complication rate with his August 2000 surgeries— are not so clear. Nellestein mentioned Clinch within the context of his overall, general critique of Heartland Regional’s cardiac program. This suggests — and the circuit court concluded — that Nellestein’s comments were expressions of opinion. Nellestein, however, mentioned infection and morbidity rates and-depending on when Nellestein calculated the 35 percent complication rate-may have stated that Clinch’s August 2000 surgeries had a 35 percent complication rate. Whether a doctor’s infection and morbidity rates are above the accepted standards and, therefore, cause for concern, are verifiable facts.
See Henry,
Nellestein argues that he and Clinch disagree as to what caused the complications in Clinch’s August 2000 surgeries; therefore, the 35 percent complication rate expressed a medical opinion. The issue, however, is whether or not Heartland Regional’s administrators, upon hearing such a statistical figure, could have reasonably inferred that Nellestein was providing a fact, not an opinion. They could have.
Moreover, although Clinch does not contest that his surgeries during August 2000 had a 35 percent complication rate, factual disputes remain unresolved. Clinch claims that the complication rate is false and misleading because Nellestein did not account for other factors or attempt to isolate the causes. Nellestein counters that he did not try to identify the causes and that his purpose was only to note that complications had occurred; thus, he did not consider patient history or other contributing factors. Even assuming that Clinch’s surgeries had a 35 percent complication rate, this says nothing about whether or not Clinch caused the complications. Thus, if Nellestein communicated this figure to Heartland Regional’s administrators without also stating that his analysis was incomplete or that he had not isolated the causes, the administrators could reasonably infer that Nellestein was accusing Clinch of causing the complications. This is particularly true in light of Nellestein’s suggesting that an investigation occur. A jury could infer that Nellestein misled Heartland Regional administrators by providing a half-truth and did so intentionally
Clinch also alleged that Nellestein misrepresented facts by telling hospital administrators that Clinch had high infection and morbidity rates and poor clinical outcomes. In response to Nellestein’s statements, Kretzinger conducted an independent investigation, which revealed no problems with Clinch’s performance. A jury could reasonably infer that Nellestein misrepresented facts concerning Clinch’s performance.
We turn to Clinch’s antitrust claims against Heartland Health, Heartland Regional, Midwestern Health Management, and Kruse. We affirm the circuit court’s granting summary judgment for the defendants. The circuit court found that Clinch lacked standing as an antitrust plaintiff. We agree.
Clinch first argues that the defendants’ answer did not allege substantive facts to support their affirmative defense that he lacked standing. Clinch did not raise this argument before the circuit court, so we do not address the issue except to point out that defendants raised the affirmative defense in their answer, putting Clinch on notice of their claim, and thoroughly argued the issue in their motions to dismiss and for summary judgment.
As an antitrust plaintiff, Clinch’s obligation was to show that he was a competitor or consumer who suffered a direct antitrust injury.
Hamilton v. Spencer,
Clinch argues that he had standing because the defendants excluded him as a competitor from the marketplace. Even assuming arguendo that the defendants excluded Clinch from the market and that competitors can be proper plaintiffs, Clinch must demonstrate that the defendants injured competition by revoking his privileges.
Clinch argues that the defendants injured competition by entering into an exclusive contractual arrangement with its cardiac surgeons, thereby preventing him and those doctors without contracts with Heartland Regional from practicing at Heartland Regional. Loss of employment is not an antitrust injury, and entering into an exclusive contractual arrangement is not an antitrust violation
per se. See Jefferson Parish Hospital District Number 2 v. Hyde,
Clinch also argues that Heartland Regional’s excluding him injured competition because it virtually eliminated the availability of off-pump bypass surgery, which Nellestein and Schwabe rarely performed.
Moreover, consumers still had the option of obtaining off-pump bypass surgery at Heartland Regional after Clinch’s removal from the staff. Nellestein performed several off-pump surgeries before and after Clinch departed. Nellestein performed off-pump surgery when on-pump surgery was not viable.
Clinch also cannot establish that the defendants’ decision harmed pricing in an anti-competitive way. Even assuming that off-pump surgery costs less than on-pump surgery, the defendants’ decision to revoke Clinch’s hospital privileges had little impact on cost. By the end of Clinch’s tenure, few off-pump surgeries were being performed. Thus, terminating the privileges of the surgeon who preferred off-pump surgery impacted the price of bypass surgery in the market only minimally. But, even assuming
arguendo
that the cost of bypass surgery rose at Heartland Regional, Clinch has not demonstrated that it rose to an anti-competitive level, which is required to establish that defendants’ actions had an anticompetitive impact.
Zipper,
Hence, Clinch cannot establish that he suffered an “injury of the type the antitrust laws were intended to prevent.”
Brunswick Corporation v. Pueblo Bowl-O-Mat, Inc.,
We, therefore, affirm the circuit court’s summary judgment for the defendants on Clinch’s antitrust claims. We reverse and remand the circuit court’s summary judgment for Nellestein on Clinch’s claim for tortious interference with business relationships.
Notes
. These elements were enunciated in substance in 1953 in
Downey v. United Weatherproofing Inc.,
. Although, the Supreme Court’s statements concerning improper means were
dictum,
the court gave several reasons for dismissing Nazeri’s claim for tortious interference, any one of which would have been sufficient.
Nazeri,
