Vandall v. Trinity HospitalsVandall v. Trinity Hospitals
[¶ 1] Michael T. Vandall, M.D., appealed from a judgment dismissing his action against Trinity Hospitals (“Trinity”) and Margaret C. Nordell, M.D. for failure to state a claim upon which relief could be granted, and awarding Trinity $24,740.63 in attorneys’ fees. We hold Vandall’s complaint fails to state a claim upon which relief can be granted, and the trial court abused its discretion in awarding Trinity attorneys’ fees. We affirm the judgment dismissing Vandall’s complaint but we reverse the award of attorneys’ fees.
I
[¶ 2] Trinity hired Vandall under a Physician Services Agreement effective from December 1, 1996, through November 30, 2001. Vandall alleged that, during the course of his employment with Trinity, he learned Nordell, another Trinity physician, was engaged in a level of treatment that Vandall believed violated accepted standards of care. According to Vandall, he unsuccessfully attempted to address the problem through Trinity’s available internal procedures. Vandall alleged that, after consulting with legal counsel, he ultimately reported the matter to the North Dakota Board of Medical Examiners (“Board”), and the Board concluded Nordell’s treatment constituted gross negligence and immediately suspended her license to practice medicine in North Dakota. Vandall claimed Trinity then began a series of retaliatory actions against him, including censuring him and failing to reappoint him
[¶ 3] In January 2003, Vandall sued Trinity and Nordell, alleging Trinity undertook a series of retaliatory actions against him, because, as required by
[¶ 4] The trial court dismissed Van-dall’s complaint against Trinity and Nor-dell under
II
[¶ 5] A motion to dismiss a complaint under
III
[¶ 6] Vandall argues his complaint states a common law claim for retaliation against Trinity. He argues his common law claim is subject to a six-year statute of limitations and has not been preempted by the 180-day statute of limitations in
[¶ 7]
[¶ 8] Vandall nevertheless argues
[¶ 9] In 1993, the North Dakota Legislature enacted the whistle-blower statute now codified at
[¶ 10] Before the 1997 enactment of legislation authorizing a civil action for retaliatory discharge, this Court had discussed a limited public policy exception to the employment at-will doctrine for cases where a termination violated a specific declaration of public policy evidenced by a constitutional or a statutory provision.
Lee v. Walstad,
[¶ 11] Since
Lee,
we have recognized employees may bring a tort action for retaliatory discharge against an employer, if the employer’s actions contravene a clear statement of public policy in a constitutional or a statutory provision. In
Krein v. Marian Manor Nursing Home,
[¶ 12] Vandall claims our decision in
Anderson
recоgnizes the coexistence of both a common law and a statutory action for retaliatory discharge. We reject Van-dall’s broad reading of
Anderson.
As the United States Supreme Court recently explained in
Illinois v. Lidster,
■ — ■ U.S. -,-,
[¶ 13] In
Anderson,
[¶ 14] Section 1-01-06 N.D.C.C. says “[i]n this state there is no common law in any case where the law is declared by the code,” and that language has consistently been construed to mean that statutory enactments take precedence over and govern conflicting common law doсtrines.
See Northern Pac. R.R. Co. v. Herbert,
[¶ 15] In
Hill,
[¶ 16] The elements of the statutory and the common law actions for retaliatory discharge are essentially the same.
See Anderson,
[¶ 17] Because of our resolution of this issue, we do not consider issues about whether Vandall became an at-will employee after two years of employment with Trinity under
IV
[¶ 18] Vandall argues his complaint states a cause of action against Nor-dell for the common law tort of wrongful initiation and continuation of administrative proceedings under Restatement (Second) of Torts § 680 (1977). Vandall’s complaint alleged Nor dell initiated a censure action against him with a letter to Trinity’s Quality Assurance Committee and Nordell filed complaints against him with the Board and with the ACOG. Vandall’s eomr plaint alleged Nordell’s complaints, with the exception of Trinity’s censure, were all terminated in his favor.
[¶ 19] We have not previously considered whether to adopt the Restatement (Second) of Torts § 680 in North Dakota, nor dо we need to do so here. Assuming without deciding such an action exists in North Dakota, we conclude Vandall’s com
One who takes an active part in the initiation, continuation or procurement of civil proceedings against another before an administrative board that has power to take action adversely affecting the legally protected interests of the other, is subjеct to liability for any special harm caused thereby, if
(a) he acts without probable cause to believe that the charge or claim on which the proceedings are based may be well founded, and primarily for a purpose other than that of securing appropriate action by the board, and
(b) except where they are ex parte, the proceedings have terminated in favor of the person against whom they are brought.
[¶ 20] Vandall alleged Nordell initiated Trinity’s censure action with a letter to Trinity’s Quality Assurance Committee, but Vandall’s complaint alleged he was censured by Trinity. Vandall’s complaint does not and cannot allege Nordell’s letter to Trinity’s Quality Assurance Committee resulted in the termination of that proceeding in his favor because Trinity did censure him. Therefore his allegations regarding that letter fail to state a claim upon which relief can be granted under Restatement (Second) of Torts § 680. Moreover, Vandall has not marshaled an argument in this Court about his allegation that Nordell filed two complaints with the ACOG. We have said a party waivеs an issue by not providing supporting argument.
McMorrow v. State,
[¶ 21] We move to consideration of Vandall’s argument about Nordell’s two complaints to the Board, which he alleges were terminated in his favor and were made for revenge and without justification and probable cause.
[¶ 22] Courts that have considered the application of Restatement (Second) of Torts § 680 generally have recognized it does not apply to a complaint made to an administrative аgency that has an independent investigative panel charged with investigating and determining whether the complaint warrants further action, because the agency, not the complainant, issues legal process and initiates, continues, or procures the administrative proceeding.
See Hogen v. Valley Hosp.,
[¶ 23] In
Davis,
What constitutes initiation, institution or instigation of charges in an agency setting depends on how charges are brought to the agenсy for adjudication. In those cases where the agency provides a means for persons to file complaints which automatically trigger agency action on those complaints, the person is held to have instigated the action.
Thus, where the defendants on their own initiative submitted affidavits to licensing officials with the intent to secure the revocation or non-renewal of plaintiffs private detective’s license and the licensing authorities refused to renewthe license on the basis of the affidavits, the court held that instigation was sufficient. Mel vin[ v. Pence], 130 F.2d [423] at 427 [(1942)].
Where a defendant filed written verified charges of misconduct with a Real Estate Licensing Board which required the Board to hold a hearing, the defendant “instituted” the administrative action. Carver[ v. Lykes], [262 N.C. 345 ,-]137 S.E.2d [139] at 145^6 [(1964)]. The defendant’s motive is not relevant. Id. at 146. Likewise, where a document is filed with an agency which document initiates a contested proceeding, a defendant has instigated an action. Hillside Associates[ v. Stravato], 642 A.2d [664] at 670 [(1994)] (filing an appeal of plaintiffs building permit with a zoning board). In Kauffman[ v. A.H. Robins, Co], 448 S.W.2d [400] at 403-04 [(1969)], the Tennessee Supreme Court held that the defendant drug company had instituted an agency Board of Pharmacy proceeding where it filed a complaint in which it stated that it stood ready to attempt to prove that plaintiff violated certain pharmacy laws. As a result of the complaint, plaintiff was cited to appear before the State Board of Pharmacy for a hearing. Id. at 401.
On the other hand, when an agency official has sole authority to initiate the action, persons who have provided information to that official are not held to have initiated or taken an “active part” in initiating the actiоn. The general rule is that an individual who merely provides facts concerning the conduct of another to an officer possessing the authority to issue charges is not liable for malicious prosecution. See e.g., Linden-man,875 P.2d at 979 . In Lindenman the Kansas Supreme Court held that a county board of health employee who inspected a day care center and filed a report with the board did not initiate the board’s ex parte suspension of the day care center’s license and cannot be considered an “active part” of the board’s subsequent rеvocation action against the day care center. Id. The board filed the revocation action when the day care center refused to stipulate to the accuracy of the inspection report, a condition for lifting the suspension. Id. at 969. Likewise, in Werner v. Hearst Publications, Inc.,65 Cal.App.2d 667 ,151 P.2d 308 , 312 (1944), individuals who sent a letter to an investigator for a state bar association complaining about an attorney did not institute the show cause proceeding against the attorney, where the local bar association committee made an independent investigation and оne of its members signed the complaint initiating the proceeding. This holding was reaffirmed in Stanwyck v. Horne,146 Cal. App.3d 450 ,194 Cal.Rptr. 228 , 234 (1983).
[¶ 24] In
Stanwyck,
194 CaLRptr. at 233-34, the California Court of Appeals discussed the initiation of proceedings in the context of a complaint to the state bar association about a lawyer’s conduct. The court concluded the state bar association’s rules required it to conduct an independent investigation and determine whether to proceed on the complaint, and the state bar association, not the complainant, therefore initiated, continued, or procured disciplinary proceedings against the attorney.
Id.
at 234. The court recognized a strong public policy dictated allowing a person to make a complaint to the state bar association without fear of a subsequent action for malicious prosecution.
Id.
at 234-36. In
Hogen,
[¶ 25] Under
[¶ 26] Although Vandall claims the corollary of the “good faith” language in those provisions is that the Legislature presumed the lack of good faith would establish the basis for an action, he has not marshaled an argument to support that claim.
See Trade ‘N Post, L.L.C. v. World Duty Free Americas, Inc.,
[¶27] Under the statutory scheme in
V
[¶ 28] Vandall argues his complaint states a cause of action against Trinity and Nordell for intentional infliction of emotional distress.
[¶ 29] In
Muchow v. Lindblad,
[¶ 30] We conclude Vandall’s claims against Trinity do not allege conduct that is so outrageous in character and so extreme in degree as to go beyond all possible bounds of decency and to be regarded as atrocious and utterly intolerable in a civilized community. To the extent Van-dall raises a similar claim against Nordell, we also conclude those claims do not rise to the level of extreme and outrageous conduct. We therefore conclude Vandall’s complaint fails to state a claim for intentional infliction of emotional distress against Nordell and Trinity.
VI
[¶ 31] Vandall argues the trial court erred in awarding Trinity attorneys’ fees. He argues he did not sue Trinity under
[¶ 32] Attorney fees are not allowed to a successful litigant unless expressly authorized by statute.
In re Estate of Lutz,
[¶ 33] In awarding Trinity attorneys’ fees, the court recognized its “authority for the awarding an unspecified amount of reasonable attorney fees in
VII
[¶ 34] We affirm the judgment dismissing Vandall’s complaint and reverse the award of attorneys’ fees.