Attaya v. Shoukfeh

• Citation: 962 S.W.2d 237
• Decision Date: 30 January 1998
• Docket Number: Nos. 07-96-0264-C,07-96-0265-CV,s. 07-96-0264-C
• Parties: Nabil ATTAYA, M.D., Appellant, v. Fawwaz M. SHOUKFEH, M.D., Appellee.
• Court: Court of Appeals of Texas

Page 237

962 S.W.2d 237

Nabil ATTAYA, M.D., Appellant, v. Fawwaz M. SHOUKFEH, M.D., Appellee.

Nos. 07-96-0264-CV, 07-96-0265-CV.

Court of Appeals of Texas,

Amarillo.

Jan. 30, 1998.

Rehearing Overruled March 13, 1998.

Don C. Dennis, Karla K. Carlson, Lubbock, for appellant.

Aubrey J. Fouts, Lubbock, Joe R. Greenhill, Jr., Austin, Richard A. Simpson, Andrew L. Shapiro, Washington, DC, for appellee.

Before BOYD, C.J., and DODSON and QUINN, JJ.

DODSON, Justice.

In the trial court, Fawwaz M. Shoukfeh, M.D. sued Nabil Attaya, M.D. for furnishing information against him to the Texas State Board of Medical Examiners in bad faith, for malicious prosecution, abuse of process, defamation, business disparagement, intentional infliction of emotional distress and battery. Attaya claimed absolute quasi judicial immunity. The trial court granted Attaya's motion for directed verdict on all of Shoukfeh's causes of actions except the bad faith and battery actions which were submitted to the jury.

After the jury's verdict (which was favorable to Shoukfeh), the trial court rendered judgment against Attaya in the sum of $125,000.00 for actual damages, and awarded no exemplary damages. Also, the trial court imposed sanctions against Attaya for alleged discovery abuses. Both parties appealed from the judgment, and Attaya appealed from the discovery sanctions. We reverse the trial court's judgment, render judgment against Shoukfeh on all of his claims against Attaya, and set aside all sanction orders against Attaya.

Attaya and Shoukfeh are practicing cardiologists in Lubbock, Texas. Both were staff members at a Lubbock hospital. Shoukfeh asserts that the animosity between he and Attaya relates to Shoukfeh's service on a peer review committee which caused Attaya's physician privileges to be revoked at the hospital in 1982. Shoukfeh was one of seven members on the committee. After his privileges were revoked, Attaya brought an action against the hospital. Shortly thereafter, the suit was settled favorable to Attaya and his privileges were reinstated.

Some four years later, in October of 1986, Attaya, believing that Shoukfeh was performing questionable procedures, contacted the Texas Board of Medical Examiners (the Board). On November 7, Attaya met with Dan Best, a board investigator, and provided Best with medical records of the questionable procedures and copies of malpractice complaints filed against Shoukfeh. As a result of the reporting of this information to the Board, the Board began an investigation of Shoukfeh, which lasted approximately four years, and resulted in the Board's Hearing Division filing a complaint against Shoukfeh for violations of the Texas Medical Practice Act. After a hearing, the Board's hearing examiner determined that Shoukfeh had violated certain provisions of the Texas Medical Practice Act, and recommended to the Board that Shoukfeh receive a public reprimand. The full Board, after a hearing and without comment, dismissed the complaint against Shoukfeh. After the Board dismissed the complaint, Shoukfeh brought this action.

Attaya's Appeal

First, we will address Attaya's appeal. Attaya brings twenty points of error. By points three, four and nine, Attaya presents his primary contention that Shoukfeh has no cause of action against him for furnishing information to the Board because his communications with the Board concerning Shoukfeh were absolutely privileged, as statements made in connection with a judicial or quasi-judicial proceeding. In essence, Attaya claims that he is absolutely immune from liability for statements made to the Board concerning Shoukfeh. We agree.

Absolute Immunity Doctrine

The absolute privilege (i.e., immunity) doctrine has been firmly established in the Texas legal system for over one hundred years. See A.H. Belo & Co. v. Wren, 63 Tex. 686 (1884); Runge v. Franklin, 72 Tex. 585, 10 S.W. 721 (1889). This absolute immunity doctrine (which has been routinely extended to judicial proceedings) means that any statement made in the trial of any case by anyone cannot constitute the basis for a defamation or any other civil action. Reagan v. Guardian Life Ins. Co., 140 Tex. 105, 110, 166 S.W.2d 909, 912 (1942); James v. Brown, 637 S.W.2d 914, 916 (Tex.1982); Aransas Harbor Terminal Ry. Co. v. Taber, 235 S.W. 841, 842 (Tex.1921).

In Reagan, the court defined absolute privilege as "any communication, oral or written, uttered or published in the due course of a judicial proceeding is absolutely privileged and cannot constitute the basis of a civil action in damages for slander or libel." The court further stated that "the falsity of the statement or the malice of the utterer is immaterial, and the rule of nonliability prevails even though the statement was not relevant, pertinent and material to the issues involved in the case."

The absolute privilege (i.e., immunity) has been extended to statements made in quasi-judicial proceedings before governmental executive officers, boards and commissions which exercise quasi-judicial powers. Reagan, 140 Tex. at 110, 166 S.W.2d at 912; Lane v. Port Terminal R.R. Ass'n., 821 S.W.2d 623, 625 (Tex.App.--Houston [14th Dist.] 1991, writ denied) (where the court determined that absolute immunity doctrine applied to the National Railroad Labor Board, Special Board of Adjustment proceedings); Aransas Harbor Terminal Ry. Co. v. Taber, 235 S.W. at 843 (where it was determined that the absolute privilege applied to Railroad Commission proceedings); Town of South Padre Island v. Jacobs, 736 S.W.2d 134, 143-44 (Tex.App.--Corpus Christi 1986, writ denied) (where court determined privilege applied to proceedings before town's board of aldermen).

In McAfee v. Feller, 452 S.W.2d 56, 57-58 (Tex.Civ.App.--Houston [14th Dist.] 1970, no writ), the court determined that for proceedings before a governmental board to be considered quasi-judicial, the board must have authority to redress grievances of which it takes cognizance. In Ramirez v. Texas State Bd. Of Medical Examiners, 927 S.W.2d 770, 773 (Tex.App.--Austin 1996, no writ), the court determined the Texas State Board of Medical Examiners to be a body that determines rights, duties, or privileges of persons and therefore acts in a judicial or quasi-judicial capacity.

As stated in Hernandez v. Hayes, 931 S.W.2d 648, 651 (Tex.App.--San Antonio 1996, writ denied), the rationale for extending an absolute privilege to quasi-judicial proceedings rests in the public policy consideration that every citizen should have the unqualified right to appeal to the agencies of government for redress "without the fear of being called to answer in damages" and that the administration of justice will be better served if "witnesses are not deterred by fear of lawsuits." See Parker v. Holbrook, 647 S.W.2d 692, 695 (Tex.App.--Houston [1st Dist.] 1982, writ ref'd. n.r.e.).

The absolute privilege is intended to protect the integrity of the process itself and to insure that the decision-making body gets the information it needs. Even though the speaker may not deserve the privilege, nevertheless, the law grants the privilege to protect the integrity of the process. See Reagan v. Guardian Life Ins. Co., 140 Tex. at 110, 166 S.W.2d at 912 (false statements uttered with express malice remain privileged).

Shoukfeh claims his bad faith action submitted to the jury was authorized by Articles 4495(b), §§ 5.06(m) and (t)(1). Subsect (m) provides in part that: "[a] person, ... that without malice ... furnishes records, information, or assistance to ... the board is immune from any civil liability arising from such action." (Emphasis added.) Subsection (t)(1) provides: "[the] following persons are immune from civil liability: (a) a person reporting to or furnishing information to ... the board in good faith "; (emphasis added.) Consequently, Shoukfeh argues that since immunity is conditioned on "without malice" in one instance and "good faith" in the other, the statute implicitly authorizes a cause of action for either "bad faith" or "malice." We disagree.

In Cole v. Huntsville Memorial Hospital, 920 S.W.2d 364, 373 (Tex.App.--Houston [1st Dist.] 1996, writ denied), when considering similar provisions of the act the court determined that the Medical Practice Act does not create a private cause of action against the actor. Likewise, we conclude that subsections (m) and (t)(1) of the Medical Practice Act does not afford Shoukfeh a private cause of action against Attaya. Further, the qualified immunity provisions of the Medical Practice Act does not repeal, destroy, diminish or supercede common law absolute immunity. Qualified immunity alone, whether by statute or common law, does not adequately protect the party informant's interest or promote the board's government function. In this connection, absolute immunity is necessary to encourage parties to fully utilize the governmental grievance process without fear or reprisal. Likewise, the mere threat of retaliatory lawsuits, however meritless, is sufficient to discourage physicians from complying with mandatory provisions of section 5.06(d) (which requires licensed physicians, medical students and other designated persons to report relevant information to the Board on acts of physicians whose actions constitute a threat to the public welfare through the practice of medicine). This case illustrates the futility of such reporting in the absence of absolute immunity. In this context, a qualified privilege is tantamount to no privilege at all. See Hernandez v. Hayes, 931 S.W.2d at 654.

Consequently, we conclude that all of Attaya's conduct and actions with the Board are absolutely immune from civil liability and all of Shoukfeh's actions against Attaya must fail. ¹ In this regard, Attaya's immunity extends to all perceived torts or other causes of action, whether plead or...