STATE MEDICAL BOARD

Cawthorn v. Catholic Health Initiatives Iowa Corp., No. 04-1724 (Iowa Nov. 30, 2007)

The Supreme Court of Iowa reversed a lower court's judgment against a hospital. The hospital had moved for a new trial. In reversing the lower court's ruling, the State Supreme Court held that state law prohibits the admission of investigative materials and information in any proceeding other than a disciplinary proceeding. Therefore, the lower court erred in admitting evidence concerning the state board of medical examiners' investigation of the acting physician. The State Supreme Court noted that "the impact of this evidence was so great that as to require a new trial and the exclusion of all evidence of the [state board's] investigation."

Notwithstanding, the State Supreme Court also affirmed the lower court's ruling which had denied the patient's claim against the hospital for punitive damages. The patient asserted that the hospital was aware that the physician was likely to injure a patient through negligent treatment. Although the hospital was aware that the physician's competency was at issue, the substance of the investigation upon which the claim was based was not known to the hospital until after the physician treated the patient. Accordingly, the court concluded that there was no evidence that the hospital's action constituted "willful and wanton disregard for the rights or safety of another," as is required for an award of punitive damages.