Lead Opinion
Opinion
Civil Code section 43.8
We must answer two related questions. First, is the statutory term “person” limited to humans, or does it also include entities? Second, is the privilege absolute or only qualified? We conclude that the privilege applies to entities, and that the privilege is qualified. Because this is consistent with the Court of Appeal’s decision, we affirm that court’s judgment.
We recite the facts as set out in the record before the trial court when it granted defendant’s motion for summary judgment. (Johnson v. City of Loma Linda (2000)
From 1970 to 1986, plaintiff Allen Hassan was a member of the medical staff of defendant Mercy American River Hospital (Mercy). In September 1993, he applied for medical staff privileges at Roseville Community Hospital (Roseville). Roseville then sent Mercy a letter asking for information about plaintiff, including Mercy’s “[k]nowledge of past clinical performance noting anything that warrants exercising caution in granting clinical privileges,” and “verification ... of [plaintiff’s] residency in psychiatry/neurology at Mendocino State Hospital.”
Mercy’s written response to Roseville, in December 1993, included “copies of letters received concerning [plaintiff’s] residency” and a copy of a memorandum summarizing a telephone conversation on January 14, 1970, during which the then associate medical director of Mendocino State Hospital (Mendocino), in a conversation with Mercy’s then medical director, had reportedly described plaintiff as “ ‘MILITANT’ vs. authority,” tending “to identify with the underdog,” “too personally involved with problems of the misfortunate or oppressed (Arabs esp.),” and a “ ‘MANIPULATOR’ of coworkers and supervisors.”
In May 1994, Roseville rejected plaintiff’s application for staff privileges in part because of “[n]egative recommendations from other hospitals,” including his “resignation from [the] psychiatry program at Mendocino.” Plaintiff sought reconsideration of Roseville’s decision, and eventually he entered into a settlement agreement under which he withdrew his application for active staff membership and Roseville admitted him under the category of “Active Physicians with Limited Hospital Privileges.”
In June 1995, plaintiff sued Mercy, asserting causes of action for defamation, intentional interference with prospective business advantage, and negligent interference with an economic relationship, all based on the January 1970 telephone conversation memorandum that Mercy forwarded to Roseville.
In November 1996, Mercy moved for summary judgment, asserting that its communication to Roseville was privileged under section 43.8, which confers immunity on communications to a hospital that is evaluating a medical practitioner. Plaintiff opposed the motion, alleging that the staff member who forwarded the memorandum to Roseville did so out of ill will because he had
The trial court granted Mercy’s motion for summary judgment. Relying on Johnson v. Superior Court (1994)
The Court of Appeal affirmed the judgment. It agreed with the trial court that entities like Mercy could invoke the section 43.8 privilege, but it concluded that the privilege was qualified, not absolute. Nonetheless, it determined that the trial court properly granted summary judgment because Mercy’s moving papers in support of summary judgment had established the conditions necessary for Mercy to claim the privilege and plaintiff’s opposition papers had failed to raise a triable issue of fact on thé issue of malice.
We granted plaintiff’s petition for review to resolve conflicts among the Courts of Appeal over whether the term “person,” as used in section 43.8, includes entities, and whether the Legislature intended that section to provide an absolute or a qualified privilege.
II
As noted at the outset, section 43.8 confers a privilege on “any person” who makes a communication to “any hospital” if the communication was “intended to aid” in evaluating a medical practitioner’s “qualifications, fitness, character, or insurability.” We consider first whether “any person” in this provision includes entities like defendant Mercy.
Well-established rules of statutory construction require us to ascertain the intent of the enacting legislative body so that we may adopt the construction that best effectuates the purpose of the law. (Esberg v. Union Oil Co. (2002)
Section 43.8 states, in pertinent part, that “no cause of action for damages shall arise against, any person . . . .” (Italics added.) Section 43.8 does not define the word “person,” but section 14, which defines certain words used in the Civil Code, states that “the word person includes a corporation as well as a natural person.” And this court long ago recognized that “person” in the Civil Code may include “public or private corporations, or natural person[s].” (City of Pasadena v. Stimson (1891)
Plaintiff urges us to limit “person” in section 43.8 to humans. In support, he cites Axline v. Saint John’s Hospital and Health Center (1998)
The Court of Appeal here characterized that statement as “offhand speculation,” apparently because the Axline court did not undertake an analysis of section 43.8’s text or legislative history to determine whether entities could claim the privilege. Moreover, it viewed the statement as mere dictum because it was not necessary for the resolution of the case. In Axline, the doctor had challenged the procedures the hospital had used in processing his application rather than, as here, a communication between two hospitals about a doctor’s competence and character. Consequently, the Axline court concluded that section 43.8’s privilege was “not triggered” because “the alleged misconduct does not relate to the communication of information to a hospital.” (Axline, supra,
Section 14’s definition of “person” as including corporations does not necessarily limit section 43.8’s privilege to natural persons and corporations. As this court has affirmed, the word “including” in a statute is “ordinarily a term of enlargement rather than limitation.” (Ornelas v. Randolph (1993)
The legislative history of section 43.8 strongly indicates that the Legislature did not intend to limit the privilege to natural persons, and it contains no indication that an entity could claim the privilege only if it was organized as a corporation. Referring to the bill that enacted section 43.8, a legislative committee staff analysis, which may be considered in determining legislative intent (Quelimane Co. v. Stewart Title Guaranty Co. (1998)
For these reasons, we conclude that “person” in section 43.8 includes entities as well as humans.
III
We now consider whether communications protected under section 43.8 are absolutely privileged or only qualifiedly privileged.
California law recognizes two fornis of privilege for communications: “An ‘absolute’ privilege excludes liability for a publication notwithstanding that it is made with actual malice, whereas a ‘qualified’ or ‘conditional’ privilege does not protect a defendant who has acted maliciously.” (Saroyan v. Burkett (1962)
The trial court here granted defendant Mercy’s summary judgment motion because it found Mercy’s communication to Roseville about plaintiff’s competence and character to be absolutely privileged under section 43.8. The
As originally enacted in 1974, the section 43.8 privilege was qualified rather than absolute. (See Hackethal v. Weissbein (1979)
We must decide whether, by removing from section 43.8 the words “and does not represent as true any matter not reasonably believed to be true,” the Legislature intended to make the privilege absolute, or whether the privilege is still qualified in light of the remaining requirement that the communication must have been “intended to aid in the evaluation of the qualifications, fitness, character, or insurability of a practitioner . . . .” This court has not previously considered this issue, although a footnote in a decision of this court characterized section 43.8 as affording “absolute immunity.” (Alexander v. Superior Court (1993)
In concluding that the section 43.8 privilege is now absolute, the trial court here relied on Johnson, supra,
The Court of Appeal majority here rejected that conclusion as being inconsistent with the text of section 43.8, which continues to require that the communication be “intended to aid in the evaluation of the qualifications, fitness, character, or insurability of a practitioner.” We agree with the Court of Appeal that the privilege remains qualified rather than absolute, and that a plaintiff may defeat a claim of privilege under section 43.8 by proving that the communicator knew the information was false or otherwise lacked a good faith intent to aid in the evaluation of the practitioner.
To determine the legislative intent, we begin with the language of the statute, giving the words their ordinary and usual meaning. (People v. Trevino, supra,
The concurring justice in the Court of Appeal suggested that the phrase “intended to aid in the evaluation of the qualifications, fitness, character, or insurability of a practitioner” did not refer to the subjective goal or purpose
The concluding sentence of section 43.8 provides additional support for this interpretation. It states: “The immunities afforded by this section and by Section 43.7 shall not affect the availability of any absolute privilege which may be afforded by Section 47.” If section 43.8 itself conferred an absolute privilege, there would be no reason for legislative concern that the section 43.8 privilege not affect the availability of the absolute privilege under section 47. This legislative concern necessarily implies that the section 43.8 privilege is more limited than the section 47 privilege, or, in other words, that the section 43.8 privilege is qualified rather than absolute.
The legislative history of section 43.8 confirms this view. In 1974, when section 43.8 was being considered for adoption, Senate committee staff provided this analysis of the proposed legislation: “Adequate protection against unwarranted and unlimited defamation of practitioners of the healing arts appears present by the requirement that the communication is privileged only if the following facts exist: [|] (a) The communication is made to hospitals, hospital medical staff, professional societies, medical and dental schools, or professional licensing boards, [f] (b) The communication is intended to aid in the evaluation of the qualifications, fitness, or character of a practitioner of the healing arts, fll] (c) The communication does not represent as true any matter not reasonably believed to be true.” (Sen. Com. on Judiciary, Analysis of Assem. Bill No. 3633 (1973-1974 Reg. Sess.) p. 3, original underscoring.)
Thus, the legislative record shows that, when it first enacted section 43.8, the Legislature understood that the privilege would protect medical practitioners against defamation through its provisions specifying (1) the identity of the entity or organization to whom the communication was made, (2) the subjective purpose or goal of the communicator to help or assist in the evaluation of the practitioner, and (3) a reasonable basis for the communicator’s belief in the truth of the information communicated.
The concurring Court of Appeal justice suggested that if the Legislature intended only to remove the duty to verify the truth of the information conveyed, the Legislature could have accomplished that goal merely by deleting the word “reasonably” from the requirement that the communication “does not represent as true any matter not reasonably believed to be true.” But a requirement phrased in this way would still require the communicator to have a subjective belief in the truth of the information communicated, thus making the privilege unavailable when the communicator was merely passing on relevant information received from a third party without any basis to believe or disbelieve the information. The Legislature may well have concluded that a privilege conditioned in this way would be too restrictive, and that it would be preferable to require only that the communicator subjectively had the purpose or goal to help the evaluation by providing available information that could bear on the medical provider’s qualifications, fitness, character, or insurability.
We have reviewed the legislative record for the 1990 amendment of section 43.8, and we find in it no indication that the Legislature intended that section 43.8 as amended would afford an absolute privilege that would immunize the communication of knowingly false and defamatory statements about a medical practitioner. To the contrary, a Senate committee analysis affirmed that “[i]t is obviously in the public interest to encourage reports of professional malfeasance by immunizing individuals from any liability for communicating in a truthful, non-malicious manner.” (Sen. Com. on Judiciary, Analysis of Sen. Bill No. 2375 (1989-1990 Reg. Sess.) p. 11, italics added.) Another Senate committee staff analysis stated that the 1990 amendment to section 43.8 would “[ijncrease immunity protection” (Sen. Com. on Business and Professions, Analysis of Sen. Bill No. 2375 (1989-1990 Reg. Sess.) p. 5), but, significantly, it did not say that the amendment would make the privilege absolute.
We note that the legislative record for the 1990 amendment of section 43.8 contains at least three, letters, including one from the Medical Board of California, asserting that the amendment would make section 43.8’s privilege
Reading section 43.8 as establishing an absolute privilege would be contrary to canons of statutory construction because it would render meaningless the statutory language requiring that the communication be “intended to aid in the evaluation of the qualifications, fitness, character, or insurability of a practitioner.” (Ibid.) Although these words do not require that the communication actually assist the receiving party in evaluating the doctor’s “qualifications, fitness, character, or insurability,” they do require that the communicator make the communication with a particular subjective intent. Because false information of any sort has no value in evaluating a medical practitioner, the communication of information known to be false cannot be intended to help or assist in that evaluation, or, in other words, an intent to deceive is inconsistent with an intent to aid. Thus, proof that the communicator knew the information to be false when it was conveyed establishes malice sufficient to defeat the qualified section 43.8 privilege.
Mercy and the amici curiae who have jointly submitted a brief in support of Mercy offer various policy arguments to persuade us that an absolute privilege is better than a qualified privilege in the situation that section 43.8 addresses. They agree with the assertion of the Court of Appeal in Johnson that, unless communicators are given an absolute privilege, “the threat of being sued . . . would deter all but the most fearless . . . [and] the Boards’ disciplinary activities would soon grind to a halt.” (Johnson, supra,
Conclusion
Having considered the text of section 43.8, its legislative history, and related provisions of the Civil Code, we conclude: (1) Entities as well as natural persons may claim the section 43.8 privilege, and (2) the privilege is not absolute but instead may be defeated by proof that the person or entity asserting the privilege, when it made the communication, knew the information was false or otherwise lacked a good faith intent to assist in the medical practitioner’s evaluation.
The judgment of the Court of Appeal is affirmed.
George, C. J., Baxter, J., Werdegar, J., Chin, J., and Moreno, J., concurred.
Notes
All further statutory references are to the Civil Code.
We have taken judicial notice of documents in the legislative record for Assembly Bill No. 3633 (1973-1974 Reg. Sess.), the bill by which section 43.8 was enacted. (Stats. 1974, ch. 1086, § 1, p. 2313.)
To the extent it is inconsistent with this conclusion, the decision in Axline v. Saint Joseph’s Hospital and Health Center, supra,
To the extent they are inconsistent with this conclusion, the decisions in Johnson v. Superior Court, supra, 25 Cal.App.4th 1564, Axline v. Saint Joseph’s Hospital and Health Center, supra,
Concurrence Opinion
I agree with the majority that the privilege conferred on persons by Civil Code section 43.8 (hereafter all statutory references are to the Civil Code) applies to entities as well as humans. However, I disagree with the majority’s conclusion that section 43.8 provides only qualified immunity.
The purpose of the 1990 amendment was to increase the immunity conferred by section 43.8, as the majority acknowledges. (Maj. opn., ante, at p. 719.) “As originally enacted in 1974, the section 43.8 privilege was qualified rather than absolute. (See Hackethal v. Weissbein (1979)
The issue before us, as the majority states, is “whether, by removing from section 43.8 the words ‘and does not represent as true any matter not reasonably believed to be true,’ the Legislature intended to make the privilege absolute, or whether the privilege is still qualified in light of the remaining requirement that the communication must have been ‘intended to aid in the evaluation of the qualifications, fitness, character, or insurability of a practitioner ....’” (Maj. opn., ante, at p. 719.)
The majority concludes the section 43.8 privilege remains qualified. “Because false information of any sort has no value in evaluating a medical practitioner, the communication of information known to be false cannot be intended to help or assist in that evaluation, or, in other words, an intent to deceive is inconsistent with an intent to aid. Thus, proof that the communicator knew the information to be false when it was conveyed establishes malice sufficient to defeat the qualified section 43.8 privilege.” (Maj. opn., ante, at p. 723.)
The crucial misstep in the argument the majority makes in support of its conclusion is assuming that intended, as used in section 43.8, refers to the intent of the person providing the communication. (Maj. opn., ante, at p. 720.)
The Legislature was, instead, referring to the intent of the hospital or hospital staff in soliciting the communication, namely, that the information is being sought to aid in an evaluation of a practitioner’s fitness, character, or insurability. That is what Justice Hull was driving at in his concurring and dissenting opinion below. “[T]he words refer to and describe the nature and subject matter of the proceedings in which the communication is made, not the state of mind of the communicator.”
The validity of this construction is demonstrated by Dorn v. Mendelzon, supra,
“The Legislature, of course, is deemed to be aware of statutes and judicial decisions already in existence, and to have enacted or amended a statute in light thereof. (People v. Overstreet (1986)
The majority seeks support for its interpretation in the final sentence of section 43.8, which states: “The immunities afforded by this section and by Section 43.7 shall not affect the availability of any absolute privilege which may be afforded by Section 47.” “If section 43.8 itself conferred an absolute privilege,” the majority argues, “there would be no reason for legislative concern that the section 43.8 privilege not affect the availability of the absolute privilege under section 47. This legislative concern necessarily implies that the section 43.8 privilege is more limited than the section 47 privilege, or, in other words, that the section 43.8 privilege is qualified rather than absolute.” (Maj. opn., ante, at p. 721.)
The majority has misconstrued the significance of the final sentence of Civil Code section 43.8. This is demonstrated by the fact that Business and Professions Code section 2318 , which clearly creates absolute immunity, concludes with the same sentence.
Business and Professions Code section 2318 provides: “In addition to any immunity afforded by Sections 43.8 and 47 of the Civil Code, if applicable, any person, including, but not limited to, a physician and surgeon, hospital, health facility as defined in Section 1250 of the Health and Safety Code, nursing home, convalescent home, peer review body as defined in Section 805, medical society, professional association, patient, nurse, or other healing arts licensee who provides information to the board, to the California Board of Podiatric Medicine, or to the Department of Justice indicating that a board
Civil Code section 43.8 was amended (Stats. 1990, ch. 1597, § 30, p. 7697) and Business and Professions Code section 2318 was enacted (Stats. 1990, ch. 1597, § 22, pp. 7694-7695) by Senate Bill No. 2375 (1989-1990 Reg. Sess.). They were elements of a comprehensive reform of California’s system of discipline against medical practitioners, a system the Legislature declared to be “inadequate to protect the health, safety, and welfare of the people of California against incompetent or impaired physicians.” (Stats. 1990, ch. 1597, § 1, p. 7683.) The immunity provided by Business and Professions Code section 2318 is clearly absolute: “[A]ny person . . . who provides information to the board . . . indicating that a board licensee may be guilty of unprofessional conduct or may be impaired . . . shall not be liable for damages in any civil action on account of the communication of that information to the board.” And yet, like the final sentence of Civil Code section 43.8, the final sentence of Business and Professions Code section 2318 provides that the immunities afforded by it “shall not affect the availability of any absolute privilege which may be afforded by Section 47 of the Civil Code.”
Finally, the majority fails to give sufficient weight to the important public policy served by according witnesses an absolute privilege against defamation actions, namely, that such a privilege is established, not for the benefit of witnesses, but for that of the public and the advancement of the administration of justice, to prevent witnesses from being deterred from coming forward and testifying to the truth by the fear of having actions brought against them. (Hackethal v. Weissbein (1979)
