Justia Non-Profit Corporations Opinion Summaries

Renaissance Medical Foundation (the Practice) is a nonprofit health organization certified by the Texas Medical Board. The Practice employed Dr. Michael Burke, a neurosurgeon, to provide medical services to its patients. Rebecca Lugo brought her daughter to Doctors Hospital at Renaissance for brain surgery performed by Dr. Burke. The surgery resulted in permanent neurological damage to Lugo’s daughter. Dr. Burke later expressed that a retractor used during the procedure migrated into the child’s brainstem, causing the injury. Lugo filed a lawsuit alleging negligence by Dr. Burke and sought to hold the Practice vicariously liable for his actions.The trial court denied the Practice’s motion for summary judgment, which argued that it could not be held vicariously liable for Dr. Burke’s negligence because it did not control the manner in which he provided medical care and that Dr. Burke was an independent contractor. The court concluded that Dr. Burke’s employment agreement granted the Practice sufficient control over him to trigger vicarious liability. The court authorized a permissive interlocutory appeal of the ruling.The Court of Appeals for the Thirteenth District of Texas affirmed the trial court’s decision, holding that Dr. Burke was an employee of the Practice under traditional common-law factors and was acting within the scope of his employment when the alleged negligence occurred. The Practice then filed a petition for review with the Supreme Court of Texas.The Supreme Court of Texas held that a nonprofit health organization may not be held vicariously liable if exercising its right of control regarding the alleged negligence would interfere with its employee physician’s exercise of independent medical judgment. The court concluded that the Practice did not conclusively demonstrate such interference and affirmed the denial of the Practice’s motion for summary judgment, remanding the case for further proceedings. View "RENAISSANCE MEDICAL FOUNDATION v. LUGO" on Justia Law