El Paso Healthcare Sys., Ltd. v. Murphy – June 2015 (Summary)

RETALIATION

El Paso Healthcare Sys., Ltd. v. Murphy, No. 08-13-00285-CV (Tex. App. June 27, 2015)

The Texas Court of Appeals affirmed a jury award for a certified registered nurse anesthetist (“CRNA”) of over $800,000 for lost wages, past and future compensatory damages and attorney’s fees. The CRNA had sued a healthcare system for firing her after she reported an obstetrician who failed to obtain informed consent from a 19-year-old patient who opposed the idea of having a caesarian section. In her complaint, the CRNA alleged that instead of explaining the risk and benefits of the c-section, the obstetrician rebuked the young woman, telling her “[w]ell, if you want a brain-damaged or dead baby, don’t blame me.”

Two to three hours after reporting the obstetrician, the CRNA was informed that she would not be working at either hospital in the health system until her complaint against the physician and his complaint against her were resolved. The CRNA was later contacted by the chairman of the Credentialing and Peer Review Committee to schedule a meeting. When her request to have an attorney present at the meeting was denied, the CRNA filed suit.

On appeal, the court affirmed the jury’s finding of retaliatory discharge, noting that the CRNA’s report was made in good faith because she presented evidence that the obstetrician failed to disclose the risk and hazards associated with a c-section to the patient. The court also affirmed the jury verdict on the CRNA’s tortious interference claim, noting that her retaliatory discharge was sufficient “tortious or unlawful conduct” to show the health system interfered with a business relationship.

The health system tried to argue that it was simply exercising its right, under its contract with the CRNA’s group, to refuse acceptance of a practitioner at its facility. However, the court concluded that the health system would not be permitted to use a legitimate privilege for illegal or tortious means. The health system also opposed the jury’s award of compensatory damages for mental anguish, but the court rejected the argument, holding the CRNA’s testimony regarding her loss of self-esteem, heightened sense of humiliation, feelings of powerlessness, sleeplessness, and loss of enjoyment in her professional life supported a finding of mental anguish damages.