*1 work, filing 60-day period for mechanic’s lien
notice of intention to hold
commences, the subcontractor finishes when for which it was hired. It is undis- task completed
puted that Newton the task for lifting pan- concrete wall
which it was hired — position els into October 1993. The —on
60-day filing a of intention period for notice lien commenced on that
to hold mechanic’s notice of inten-
date. Newton recorded its January
tion to hold mechanic’s lien on days completing its work. after timely
Newton’s mechanic’s lien was not
filed, precluded and foreclosure of the lien is
as a matter of law.
CONCLUSION judgment trial court’s in favor Complaint to Foreclose on its Newton REVERSED, hereby Lien
Mechanic’s
this cause is REMANDED with instructions findings enter of fact and conclusions of
law on Riddle’s counterclaims.
SHARPNACK, C.J., DARDEN, J.,
concur. Sword,
Diana SWORD and Carl
Jr., Appellants-Plaintiffs, HOSPITALS, INC., Alliant Health
NKC
System, Inc. Norton’s Children’s d/b/a
Hospital, Appellee-Defendant.
No. 10A05-9408-CV-322. Appeals
Court of of Indiana. 31, 1996.
Jan.
Rehearing Denied March *2 Wilson, Mattox,
Derrick H. Mattox & New Albany, appellants. Rose, P.S.C., Gary, M. &
James Weber Louisville, Kentucky, appellee. OPINION BARTEAU, Judge. appeal
Diana and from the Carl Sword summary judgment in favor of NKC Inc., Inc., Hospitals, System, Alliant Health (hereinafter Norton’s Children d/b/a Kentucky Hospital”), hospital. “Norton ISSUE dispositive We consolidate and restate the appeal issues raised on as: be held liable Whether acts of trial court erred in deter- 2. Whether the mining that the failed to demon- Swords strate that their resulted from the anesthesiologist. actions of an
FACTS light The facts taken in a most favorable to the non-movants are as follows. The Swords Louisville, Hospital in selected Norton Ken- tucky facility in which Diana as the medical labor, During would deliver their first child. epidural anesthetic which Diana received Luna, by Dr. an anesthesi- was administered ologist at Norton Dr. Luna first attempted a catheter into Diana’s to insert neck, upper spinal cord near her but was Dr. Luna then administered unsuccessful. by inserting the catheter into the anesthetic spine in her lower back. Diana’s delivering healthy baby, after her Soon headaches, began experiencing sensi- Diana noises, tivity light and numbness and loud in her back.
DISCUSSION summary judgment proceedings, summary judgment party moving for apparent held liable under the doctrine genuine there are no issues must show that agency. that the movant is enti of material fact and judgment as a matter of law. Once tled to Apparent Agency no issue the movant establishes that Hospi argue that Norton The Swords exists, summary party opposing of fact negligence of liable for the tal should be held
judgment
specific
forth'
facts indi
must set
Luna,
Luna is
despite
fact that Dr.
Dr.
cating
issue in dis
that there is
contractor,
the doc
independent
under
an
non-moving party
pute.
If the
fails to meet
apparent agency. Many courts have
trine of
burden, summary judgment in favor of
this
recognized
liability
upon either or
such
based
moving party
appropriate. Pierce v.
is
arising
spec
of two theories
under
both
One-Franklin,
(1993), Ind.App.,
Bank
NA
agency, in
eases confus
apparent
ter of
some
N.E.2d
trans. denied.
analysis.
misapplying the
ing the two and
Hornstein,
A.
Damned
D. Janulis &
See
If
Further,
party moving for sum
Do,
Hospitals’
You
You Don’t:
Damned If
mary judgment
designate to the trial
must
Physicians’ Malpractice, 64
Liability for
parts
the matters included in the
court all
of
689,
The first
Neb.L.Rev.
696-702
it relies for the motion. The
record on which
commonly
theory is
referred to as ostensible
opposing party
designate
must
to
likewise
(Sec
upon
agency, and is based
Restatement
of fact
the trial court “each material issue
ond) Torts,
429,
§
which states:
of
party
precludes
asserts
which
employs an
contrac-
One who
summary judgment and the evidence rele
which
perform
tor to
services for another
56(C). Any
vant thereto.”
Ind.Trial Rule
accepted in the reasonable belief that
of a factual issue
doubt as to the existence
being
by the
the services are
rendered
against
moving party,
should be resolved
servants,
subject
employer
by
to
his
construing
properly
all
facts and
asserted
by
liability
physical
harm caused
the non-
reasonable inferences
favor of
supplying
negligence
the contractor in
(1991),
Group, Inc.
movant. Cowe v. Forum
services,
though
to the same extent as
such
Ind.,
630,
575 N.E.2d
employer
supplying
himself
were
them
byor
his servants.
Hospital
Norton
The Swords seek
hold
Luna,
negligence
Dr.
hable for the
is'commonly
theory
referred to
The second
anesthesiologist
practices
who
medicine at
agency by estoppel,
predicated on
and is
parties
dispute
not
Norton
The
do
(Second)
§
Agency,
267:
Restatement
Dr. Luna was not an
of Nor
represents that another is a serv-
One who
Hospital,
practiced
medicine at Nor
ton
agent
thereby causes a
ant or other
Hospital
ton
as an
justifiably
rely upon
person
third
Hospital’s
granted Norton
The trial court
apparent agent
care or skill of such
summary judgment
motion for
based
subject
person
to the third
hospitals may
law that
not be held
Indiana
by the lack of care or skill of
harm caused
independent con
liable for the
appearing
one
to be a servant or other
doctors.
Iterman v. Baker
tractor
if
agent as he were such.
also,
(1938),
308, 15
214 Ind.
see
adopt
invite us to
either of these
The Swords
Osteopathic Hosp., Inc. v. Phil
South Bend
provisions and find that Norton
Restatement
387,
Ind.App., 411 N.E.2d
trans.
lips
may
Dr. Luna’s
Hospital
be held liable for
denied;
Ross v. Schubert
180 Ind.
alleged negligence.
we decline to
While
623,
dismissed,
reh’g
App.
388 N.E.2d
provisions at
adopt either of the Restatement
denied;
Huber
time,
may
find that the Swords
state
this
we
127 Ind.
Protestant Deaconess
against
a claim
Norton
under exist-
864, trans.
App.
ing Indiana law.
Norways
Sanitorium
Fowler
recognizes
ap
Indiana
the doctrine of
Ind.App.
trans. denied.
issue,
parent agency and follows the rule
that we revisit this
The Swords ask
by
Hospital may
principal
be held liable
a third
Norton
and consider whether
principal
Supreme
of one whom the
tor doctors
be traced to our
Iterman,
agent.
holds out as its
Court’s decision
214 Ind.
Therein,
recognized
N.E.2d 365.
the Court
agency relationship,
ap-
Like an actual
that,
jurisdictions
hospitals
while other
held
parent agency
by
is also initiated
a man-
accountable for
contractor doe-
However,
principal.
ifestation
neghgence
apparent agency,
tors’s
under
required
by
manifestation is one made
approach
such an
was
viable
Indiana
principal
to a third
who in turn is
prohibited hospital
because Indiana statutes
instilled with a reasonable belief that an-
corporations
practicing
medicine.
princi-
other individual is an
pal....
being
The essential element
there
right
surgery
medicine and
communication,
must be some form of
di-
personal
under a hcense
the state is a
indirect, by
principal,
rect or
privilege.
delegated,
It cannot be
and a
*4
instills a reasonable
in the mind
belief
of
corporation,
person,
or other unlicensed
party.
the third
may
engage
practice
the
of medicine
(1984),
Hope Lutheran Church v. Chellew
by employing one who is licensed to do the
Ind.App.,
(citing
460 N.E.2d
things
practicing
pro-
which constitute
(1979),
Downing
Ind.App.
Stuteville v.
holding
fession. ... There are cases
that
197, 199,
629, 631;
Man,
Burger
391 N.E.2d
corporation
estopped
denying
from
Products,
(1976),
Paper
Inc. v. Jordan
Inc.
physician
agent,
is its
and that it is
295, 312,
821, 832,
Ind.App.
352 N.E.2d
physician’s neghgence,
for the
liable
where
(1973),
Storm v. Marsischke
corporation
diagnose
has contracted to
842).
136, 138,
Ind.App.
304 N.E.2d
or treat diseases.
Supreme
long ago
Our
Court established
that
estoppel
only
An
can
arise where the
party may
principal
third
hold
hable for
claiming
injury
it has acted to his
without
neghgence
apparent agent.
of its
knowledge
full
of the facts and without an
represents
Where one
to another that a
equal opportunity to know the facts.
It
person
designated
agent,
is his servant or
knowledge
cannot arise out of
lack
of
of
person
rep-
and induces the
to whom such
law,
equal opportunity
since all have an
therein,
resentations are made to confide
law,
presumed
to
and are
know
and he acts
the behef that such rela-
complaint charges
know it. The
exist,
tionship
may
does
fact
an action
corporation
diagnose
contracted to
and
neghgence,
be maintained for the servant’s
ailments;
plaintiffs
negli-
treat
that it was
although
relationship
master and
of
gent
performing
the contract. The de-
servant did not exist.
corporation
fense is that the
made no such
(1882),
Hall
Growcockv.
82 Ind.
203-04.1
power
contract
it
no
to make
because
had
Still,
applied
no Indiana case has ever
estoppel
deny
corpora-
it. An
would
apparent agency
doctrine of
and found that a
right
illegality....
tion the
to assert
hospital may bé held hable
sus-
for
estoppel
There can be no
on such a basis.
patient
tained
as the result of the
corporation
legally
Since the
could not
neghgence
independent
of an
contractor.
medicine,
practice
appellee
was bound
hospitals’
against
Indiana
insulation
liabili-
to know that
treated him was not
whoever
ty
neghgence
independent
acting
corporation.
for the
of
contrac-
for the
posits
independent
Seavey,
1. The dissent
that "a
cannot be
W.
Agency §
Handbook on the
independent
Law
deemed an
and an
contractor
"employee”
However,
While
and "servant”
have
in the same breath.” At 17.
as we
connotations,
variant
modem case law tends
Trucking
noted in Burkett v. Crulo
Co.
virtually synonymous
to treat
words as
Ind.App.
355 N.E.2d
261:
plaintiff]
agency applications. Although [the
servants,
Employees,
and
con-
"agent”
"independent
seems to view
and
con-
tractors,
categories
per-
as well as other
mutually
descriptions,
tractor"
exclusive
sons,
circumstances,
may,
proper
in the
are not. An
contractor
agents.
Seavey
agent.
example
attorney
described as
Professor
clas-
An
is the
well be
representing
sifies all
as either servants or non-
a client.
added).
designates
type
(Emphasis
the latter as a
servants
316-17,
Hosp.,
Okla.
Francis
214 Ind. at
Smith
St.
words,
279;
App.,
Court concluded
v. Tacoma
other
the Herman
676 P.2d
Adamski
could not
hospitals
that because
579 P.2d
Wash.App.
Gen.
law,
patient
no
could
medicine under Indiana
Hosp., Inc.
Mem.
Vanaman v. Milford
reasonably
that
those who were
conclude
(1970),Del.,
N.E.2d
Mondello
Sloan,
policy.
516
or
N.E.2d at
Program
Blood
New York
Center — Greater
(1992),
219,
19,
80 N.Y.2d
590 N.Y.S.2d
604
Under the nature
health care services
81;
v. Health Mainte
McClellan
reasonable,
today,
entirely possible
it
for a
is
(1992),
Organiz.
Penn.
413 Pa.Su
nance
prudent
representa-
person to conclude from
128,
1053,
denied,
per.
appeal
604
532
A.2d
by hospitals
tions
and
made
the doctors
664,
985;
Independent
Pa.
616 A.2d
v.
Chase
professionals
pa-
health care
that service
(1991), Mass.App.Ct.
31
Practice Ass’n Inc.
hospitals’s
tients
facilities are
within
661,
251; Baptist
Hosp.
583
Mem.
hospitals.
or servants of the
As the
(1991), Tex.App., 822
Sys. v. Smith
S.W.2d Supreme
recently
Court of Wisconsin
noted
denied;
Center,
67,
Reg’l
reh’g
Med.
Orlando
24,
(1992),
in
Port
Kashishian v.
167 Wis.2d
Inc.,
(1990), Fla.App.,
v.
573
Chmielewski
277, reh’g denied:
481 N.W.2d
876,
Alicea
review
v. New
So.2d
[Hjospitals increasingly
themselves
hold
(1990),
Seminary
Theological
Brunswick
advertising
public
expensive
in
out
119,
900, aff'd,
N.J.Super.
581 A.2d
128 N.J.
offering
rendering quali-
campaigns
and
218;
303,
Washington
608 A.2d
Street v.
ty
only pick up
690;
health services. One need
(1989),
Hosp.
D.C.App., 558
Center
A.2d
daily newspaper
page
to see full
half
667;
Wyo., 764
v. Hill
P.2d
Sharsmith
extolling
the medical vir-
advertisements
Pamperin
Trinity
Mem.
hospital
quali-
848;
tues of an individual
Shepard
Wis.2d
N.W.2d
ty
prepared
that the
.App.
health care
Providence
89 Or
Sisters of
500;
any
areas.
to deliver in
number of medical
Emerg.
v. Coastal
750 P.2d
Brown
Serv.,
Ga.App.
hospitals
spent
have
354 Modern
billions
themselves,
marketing
nurturing
aff'd,
257 Ga.
S.E.2d
dollars
S.E.2d
image
consuming public
alleged
with the
that who was
to be
was
are full-care modern health
hospital,
facilities.
or
and that
expenditures
All of
plaintiff
these
have but one
justifiably
acted in reliance
purpose:
persuade
in
those
need of
hospital,
the conduct of the
consistent with
medical services to obtain those services at
ordinary
prudence.2
care and
A
essence,
specific hospital.
hospitals
plaintiffs injuries
for
liable
if the
business,
big
competing
have become
with
knew,
plaintiff
known,
or should have
each other for health care dollars.
allegedly negligent
profes-
health care
sional is an
Id. Wis.2d
N.W.2d
282. Hos-
pitals
represent
public
often
claim,
support
of their
the Swords
professionals
health
they provide
care
point
demonstrating
rep
evidence
various
patients
superior
employed
their
to those
Hospital
resentations Norton
made concern
by competitor hospitals, in an effort to at-
ing
expertise
caring
its
expectant
patients
tract
and the revenue derived from
many hospitals,
mothers. Like
Norton Hos
hospitals
them.
profit
Because
stand to
pital aggressively marketed its services to
representations
their
concerning
quality
public.
Hospital
Norton
stated
bro
provided by
of services
those hired to treat
chures that its Women’s Pavilion is “the most
patients,
employees
either as
technically sophisticated birthplace in the re
contractors,
hospi-
it would be
anomalous
gion.”
case,
particular
R. 228. And
to this
escape liability
tals to
if those same health
Norton
advertised that
it offers:
professionals
care
delivered services below
[Ijnstant
specialized equip-
access to the
standards,
minimally accepted
let alone the
facilities,
ment and
physician
as well as to
heightened degree
quality
represent-
often
specialists
every
pediatric
area of
medi-
hospitals’s
ed
advertisements. See
surgery. Every maternity pa-
cine and
Pamperin,
17 However, symptoms party that Diana’s are consistent with cannot be deemed an juror spinal independent loss fluid reasonable could and an contractor in the same underlying conclude that her resulted from the breath. The rationales are differ epidural. Summary judgment in opposition aborted is ent stand in to an one appropriate jury where a reach specifically, general could differ other. More the rule undisputed conclusions from principle ent facts. is liable the torts of his Peoples Savings grounded Bochnowski v. agents agency Fed’l & is on principles. not (1991), Ind., 282, Rather, liability Loan 571 N.E.2d 285. Ev tort is based employ on an ery er-employee relationship. available inference must be resolved in Dallas Moser Swords, Inc., non-moving party. Transporters, favor Ensign, 594 N.E.2d Buick, GMC, Perry v. (Ind.Ct.App.1992). Stitzer 454 This is as it should Ind., 1282, 1286,reh’g system 637 N.E.2d denied. be. our of tort based doing, upon fault, so we find that Dr. Luna whether if a is to be held liable another, the standard caused the breached of care and then acts of should alleged injuries power issue of right Swords’s have to control the other’s by jury. fact material to be resolved citing conduct. Id. 457 Prad Bitzer v. Summary ziad, 593, judgment inappropriate. (Ind.Ct.App.1991), 571 N.E.2d 596 right Such trans. denied. exists where
REVERSED. parties’ relationship typical is that of a em ployer employee. Therein lies the basis CHEZEM, J., concurs. agent’s negligence may that an rule RUCKER, J., opinion. dissents with imputed principal. be On the other hand, relationship between an employer RUCKER, Judge, dissenting. independent quite and an contractor is differ majority “hospi- I dissent. The concludes who, independent ent. “An contractor is one tals held liable for-the exercising employment, [ ] apparent agents, notwithstanding their according certain work his contracts do fact that the contrac- being subject own methods and without Op. at I agree tors.” cannot because the employer except the control his as to clear, unequivocal, in this state is law and of product work.” of his Furr v. Review Bd. of long duration exceptions that absent certain Div., Employment Indiana Sec. 482 N.E.2d here, employer may relevant not be 790, (Ind.Ct.App.1985). 794 this Because of held liable for the of his inde- acts long employer lack of control we have pendent employees. Daugherty contractor employer held that of an Engineering Corp., Fuller Serv. generally not contractor is liable for the torts (Ind.Ct.App.1993), See, Peabody e.g. of that contractor. Hale v. P. Corp., Ind.App. v. & B. Smith Company, Ind.App. Coal (1979); Zimmerman v. Baur, Ind.App. 39 N.E. *8 (1894). recognize I that the law is not a jurisdiction In the rule hospital this that a phenomenon proper static and in a case a physi the is not liable for act of its may depart court from the doctrine of stare surgeons in was first cians and announced plain in order to and obvi- decisis vindicate Baker, Iterman v. Ind. remedy principles ous of law or to continued suggest That case seemed to injustice. such However we have no case if hospital could not be held liable even us. before negligent physicians allegedly or sur dispute geons employees hospital. This
There is no of were principal. under the agent imputed be to the was so because statutes then existence, corporation, e.g., Perry, or other unlicensed Green v. “a engage of (Ind.Ct.App.1990), person, Jack not [could] Ward Chevrolet, Mikel, by employing one who is licensed Inc. v. N.E.2d 350 medicine practicing which constitute (Ind.Ct.App.1988), things And this is do the trans. denied. corporation apparent. profession.... could Since so whether is actual or medicine, hospital’s summary judgment in the appellee legally practice him treated favor. was bound know that whoever acting corporation.” Iter
was not
man, N.E.2d Because of the at 370.1 23-1.5, commonly §
enactment of Ind.Code Corporation
referred to as the Professional (Act), underlying rationale of
Act of 1983 Act,
Herman has been eroded.
applies providers, among health oth care
ers, provides pertinent part corpora “[a] professional employees perform tion whose Greg RICKEY, Appellant- James scope employ of their services within the Defendant, authority apparent their to act for ment or corporation is same as hable to the extent 23~1.5-2-6(c). § employees.” its I.C. Indiana, Appellee-Plaintiff. STATE of Council, 516 v. Metro Sloan Health No. 91A04-9502-CR-41. (Ind.Ct.App.1987), we determined “the public pronouncement Act stands as Appeals Indiana. Court concerning corporation’s policy vicarious employee-physi for the acts of its Feb. Id. at also Tarr v. cians.” see Jablon
ski,
(Ind.Ct.App.1991), reh’g
denied, (determining prop trans. denied corporation
osition under Herman that malpractice
could not be held liable for viable). physician longer is no hospital clear held
It is now performing physician
liable for the acts of a premises. hospital’s on the Howev-
services
er, recently as we reaffirmed Weaver
Robinson,
(Ind.Ct.App.1993),
rejected grounds, on other v. Mur- (Ind.1995),
phy, 659 is so employee
only physician where the is an hospital is aware that physician providing devi-
the care has practice. normal Id. case
ated from this dispute is no that Doctor Luna was
there indepen- as an
employed Norton could not therefore
dent She hospital’s agent, ap-
have also served otherwise,
parent or because she was not over whom the exercised except product of [her]
control
“as
Furr,
work.” negli- of this Doctor
settled law state Luna’s *9 contractor can not
gence I imputed to Norton therefore affirm the trial court’s
dissent would Also, Yaney by Yaney proposition as matter of law. Iterman has been cited generally not liable for the McCray Hosp., Ind.App., that a medical Memorial on its of doctors staff because (Ind.Ct.App.1986). contractors doctors considered
