VALLEY HEALTH SYSTEM, LLC, A NEVADA LIMITED LIABILITY CORPORATION, D/B/A CENTENNIAL HILLS HOSPITAL MEDICAL CENTER v. DWAYNE ANTHONY MURRAY, INDIVIDUALLY, AS AN HEIR, AS GUARDIAN AND NATURAL PARENT OF BROOKLYN LYSANDRA MURRAY, AND AS SPECIAL ADMINISTRATOR OF THE ESTATE OF LAQUINTA ROSETTE WHITLEY-MURRAY, DECEASED
No. 79658, No. 80113, No. 80968
IN THE SUPREME COURT OF THE STATE OF NEVADA
MAR 14 2024
140 Nev., Advance Opinion 14
Affirmed in part, reversed in part, vacated in part, and remanded.
Pisanelli Bice PLLC and Jordan T. Smith, Las Vegas; Greenberg Traurig, LLP, and Tami D. Cowden and Kara B. Hendricks, Las Vegas, and Kendyl T. Hanks, Austin, Texas; Hall Prangle & Schoonveld, LLC, and Michael E. Prangle and Jonquil L. Whitehead, Las Vegas, for Appellant.
Lewis Roca Rothgerber Christie LLP and Daniel F. Polsenberg and Abraham G. Smith, Las Vegas; The Gage Law Firm, PLLC, and David O. Creasy, Las Vegas, for Respondents.
Hutchison & Steffen, PLLC, and Michael K. Wall, Las Vegas, for Amicus Curiae Your Nevada Doctors.
Shook, Hardy & Bacon, LLP, and Jennifer Odell Hatcher, Kansas City, Missouri, for Amici Curiae American Medical Association and Nevada State Medical Association.
BEFORE THE SUPREME COURT, EN BANC.1
By the Court, STIGLICH, J.:
LaQuinta Whitley-Murray passed away at Centennial Hills Hospital Medical Center during a sickle cell crisis. Respondent, on behalf of LaQuinta‘s estate and heirs, filed a negligence action against appellant Valley Health Systems, which operates Centennial Hills. A jury awarded respondent over $48 million in compensatory and punitive damages combined. Concluding respondent had prevailed under a theory of breach of fiduciary duty, the district court upheld the awards and declined to apply
We clarify that hospitals do not owe a fiduciary duty to their patients in connection with medical treatment. Accordingly, we vacate the compensatory damages awards and remand to the district court to apply the damages cap to the award of noneconomic damages and to reduce both economic and noneconomic damages to the hospital‘s 65-percent pro rata share. And because respondent‘s breach of fiduciary duty claim against Centennial fails, we also reverse the award of punitive damages. We further vacate the award of prejudgment interest and remand for recalculation so that prejudgment interest is awarded solely on past damages. But we conclude that the district court did not abuse its discretion in awarding attorney fees and costs, and we accordingly affirm in that relevant part.
PROCEDURAL HISTORY
Appellant Valley Health Systems operates Centennial Hills Hospital Medical Center. On April 20, 2013, LaQuinta Whitley-Murray was admitted to Centennial for a sickle cell crisis, complaining of extreme pain. The hospital pharmacy recommended ketorolac, a non-opioid pain medication better known as Toradol, in part because sickle cell disease increases the risk associated with opiate drugs. Toradol‘s “black box” insert warns that a daily dose should not exceed 120 mg to alleviate the risk of adverse reactions, including renal failure.
The attending physician ordered 30 mg of Toradol to be administered every six hours. Because Centennial‘s policy for administering non-time-sensitive medications, as Toradol was designated, allows nurses to administer the drug within one hour of the scheduled time, LaQuinta‘s dosage sometimes exceeded 120 mg per 24 hours. On April 24, LaQuinta went into cardiac arrest and passed away. She had suffered multiorgan failure, including renal failure.
Respondent Dwayne Anthony Murray, on behalf of LaQuinta‘s estate and heirs, filed a negligence action against Centennial, its staff, and the treating physicians. Notably, Murray alleged that hospital staff‘s treatment of LaQuinta fell below the standard of care and, before trial, amended the complaint to allege that Centennial breached a fiduciary duty to LaQuinta by intentionally understaffing the hospital. At trial, Centennial‘s primary defense was that it had not breached the standard of care and that the Toradol had not caused LaQuinta‘s death, and both sides presented substantial expert testimony on those points.2 Regarding breach of fiduciary duty, no witness testified that Centennial intentionally understaffed the hospital; to the contrary, testimony established that the hospital was not understaffed on the day LaQuinta died. During trial and particularly closing arguments, Murray argued for the first time that Centennial‘s medication administration policy was meant to increase the hospital‘s profitability to the patients’ detriment. No discovery was conducted on the medication administration policy or on whether Centennial prioritized profits over patients, as Murray contended. The district court—over Centennial‘s objection—nevertheless allowed Murray‘s experts to criticize the policy.
The district court did not apply
Centennial separately appealed the judgment upon the jury verdict (Docket No. 79658), order awarding attorney fees (Docket No. 80113), and order awarding costs (Docket No. 80968). This court consolidated the appeals.
DISCUSSION
Centennial does not contest the jury‘s negligence findings, instead primarily arguing that the district court erred by entering judgment for intentional breach of fiduciary duty because Nevada law does not support imposing a heightened fiduciary duty on hospitals in this context.3
We agree and address that issue before addressing the application of
Nevada does not recognize a fiduciary duty owed by a hospital to a patient in the provision of medical services
Centennial argues that Nevada law does not recognize a heightened fiduciary duty owed by a hospital to a patient in the administration of medicine and thus the district court erred in entering judgment against Centennial on Murray‘s claim for intentional breach of fiduciary duty. Murray responds that this court should recognize hospitals as fiduciaries that owe their patients a duty to establish and follow policies for the health and safety of patients.
Because the existence of a duty of care presents a question of law, we review the district court‘s decision de novo. See Peck v. Zipf, 133 Nev. 890, 892, 407 P.3d 775, 778 (2017); Scialabba v. Brandise Constr. Co., 112 Nev. 965, 968, 921 P.2d 928, 930 (1996). A fiduciary relationship exists when one places heightened confidence in another such that the latter must then act in good faith and for the other‘s benefit. See Long v. Towne, 98 Nev. 11, 13, 639 P.2d 528, 529-30 (1982) (discussing the elements for a claim of constructive fraud). Although physicians may owe a duty of fiduciary care to their patients in
Similarly, the California Supreme Court rejected the claim that a hospital owner, medical researcher, and two interested corporations owed a fiduciary duty to a patient and thus were obligated to obtain a patient‘s informed consent regarding a procedure, in contrast to the fiduciary duty owed by the patient‘s physician. Moore v. Regents of the Univ. of Cal., 793 P.2d 479, 486 (Cal. 1990) (recognizing, however, that a hospital may be vicariously liable for a supervised physician‘s violation of that physician‘s own fiduciary duty to the patient). The Connecticut Supreme Court noted that professional negligence involved breaching a duty of care, while breaching a fiduciary duty involved violating a duty of loyalty and honesty, before concluding that “[t]he plaintiff has provided scant reason to conclude that a hospital owes a patient the duty of a fiduciary.” Sherwood v. Danbury Hosp., 896 A.2d 777, 797 (Conn. 2006). And a Louisiana federal district court rejected that any authority existed to support the proposition that such a fiduciary duty might arise from a healthcare-provider-and-patient contract between those parties.6 Harrison v. Christus St. Patrick Hosp., 430 F. Supp. 2d 591, 595 (W.D. La. 2006).
We agree with these courts. No authority supports a broad finding that hospitals owe patients a fiduciary duty. Further, recognizing a claim for breach of fiduciary duty against a hospital in relation to a patient‘s
Here, Murray initially based the breach-of-fiduciary-duty claim on allegations of intentional understaffing, but at trial, Murray reversed course and argued what he failed to allege in his complaint: Centennial‘s medication administration policy prioritized profits over patient safety and constituted an intentional breach of fiduciary duty because the policy allowed staff to administer medication in violation of Toradol‘s black box warning. Upon concluding Centennial owed a heightened duty of care to LaQuinta by virtue of her status as a patient who came to the hospital with an expectation of being cared for, the district court upheld the full damages award on grounds that
The compensatory damages award must be reduced
As only the negligence claim remains,
The jury here found Centennial and its staff to be 65-percent liable. It awarded $5,000,000 for loss of companionship, comfort, and consortium; $7,000,000 for grief and sorrow; $1,700,000 for loss of probable support; $10,000 for funeral expenses; and $2,500,000 for LaQuinta‘s pain and suffering. Of these, loss of companionship, comfort, and consortium; grief and sorrow; and pain and suffering are noneconomic damages and are accordingly
Punitive damages were improper
Centennial argues the record does not support an award of punitive damages. We agree that the punitive damages award was improper. Critically, the verdict form allowed the jury to reach punitive damages only if the jury first determined Centennial breached a fiduciary duty. The district court later upheld that award on the ground that the medication administration policy supported the breach of fiduciary duty claim. But Murray did not plead facts regarding the medication administration policy in the amended complaint, instead alleging understaffing and raising the medication administration policy only during trial. Regardless, our determination that Centennial did not owe a fiduciary duty here precludes the punitive damages award, as under the verdict form the jury could not reach punitive damages if Centennial did not owe, and therefore could not breach, a fiduciary duty to LaQuinta. Accordingly, we reverse the punitive damages award without reaching the parties’ arguments on this point.
The district court erred in awarding prejudgment interest on the entire award, rather than the portion attributable to past damages
Centennial argues that the district court erred in awarding prejudgment interest on future damages. Murray argues that this claim was waived because it was not timely raised and the district court accordingly did not consider it. If the claim is entertained, Murray asserts that the only future damages are those for grief and sorrow. Centennial replies that relief is nevertheless warranted for plain error. Again, we agree with Centennial.
Nevada law is clear: prejudgment interest cannot be awarded on future damages. See
The jury here awarded a combination of past and future damages. It awarded past damages for LaQuinta‘s pain and suffering and funeral expenses. Damages for loss of companionship, comfort, and consortium and loss of support reflected future damages. See
The district court did not abuse its discretion in awarding attorney fees and costs
Centennial argues that the district court should not have awarded more than $700,000 in attorney fees and costs. It argues that its refusal of LaQuinta‘s offer of judgment was not grossly unreasonable or in bad faith. It argues that the court should have credited its theories of defense in determining whether it rejected Murray‘s offer of judgment in good faith and that Murray‘s attorneys’ hourly rates were not reasonable. Centennial also argues that Murray‘s experts’ fees were unreasonable, considering that two experts opined on similar topics. We disagree.
Where a party rejects an offer of judgment and fails to obtain a more favorable outcome, the offering party may recover attorney fees and costs incurred after the offer was made.
(1) whether the plaintiff‘s claim was brought in good faith; (2) whether the defendants’ offer of judgment was reasonable and in good faith in both its timing and amount; (3) whether the plaintiff‘s decision to reject the offer and proceed to trial was grossly unreasonable or in bad faith; and (4) whether the fees sought by the offeror are reasonable and justified in amount.
Where a plaintiff rather than a defendant makes an offer, the first factor looks to whether the defendant raises its defenses in good faith. Yamaha Motor Co., U.S.A. v. Arnoult, 114 Nev. 233, 252, 955 P.2d 661, 673 (1998). To determine whether the fees sought are reasonable with respect to the fourth Beattie factor, the court looks to the Brunzell factors:
(1) the qualities of the advocate: his ability, his training, education, experience, professional standing and skill; (2) the character of the work to be done: its difficulty, its intricacy, its importance, time and skill required, the responsibility imposed and the prominence and character of the parties where they affect the importance of the litigation; (3) the work actually performed by the lawyer: the skill, time and attention given to the work; (4) the result: whether the attorney was successful and what benefits were derived.
Brunzell v. Golden Gate Nat‘l Bank, 85 Nev. 345, 349, 455 P.2d 31, 33 (1969). Until the statutory limit in
The district court found that Centennial rejected an offer of judgment for $300,000 and did not obtain a more favorable outcome. The court specifically found that the Beattie and Brunzell factors warranted attorney fees. It found that the offer was in good faith and reasonable in light of the trial preparation that had already been undertaken at that time and that the rejection of the offer was unreasonable because Centennial knew the evidence supporting the claims and the substantial damages alleged. The court found
The record demonstrates that the district court considered the relevant standards and that substantial evidence supports the award of attorney fees and costs. See id. at 266, 350 P.3d at 1143 (“[T]he district court need only demonstrate that it considered the required factors, and the award must be supported by substantial evidence.“). Centennial has not shown to the contrary. Further, this matter required a nine-day jury trial in 2019 and ongoing appellate litigation to resolve. Had Centennial accepted Murray‘s good-faith offer of judgment in 2016, each party would have forgone considerable time and expense. Cf. Dillard Dep‘t Stores, Inc. v. Beckwith, 115 Nev. 372, 382, 989 P.2d 882, 888 (1999) (remarking that “[t]he purpose of...
CONCLUSION
A hospital does not owe a fiduciary duty to its patients in relation to medical care. Under
STIGLICH, J.
We concur:
PICKERING, J.
HERNDON, J.
PARRAGUIRRE, J.
BELL, J.
CHERRY, Sr. J.
SILVER, Sr. J.
