Burka v. Vanderbilt Univ. Med. Ctr.

• Decision Date: 21 July 2021
• Docket Number: 3:19-cv-00113
• Parties: Douglas BURKA, M.D., Plaintiff, v. VANDERBILT UNIVERSITY MEDICAL CENTER, Defendant.
• Court: U.S. District Court — Middle District of Tennessee

550 F.Supp.3d 530

Douglas BURKA, M.D., Plaintiff,

v.VANDERBILT UNIVERSITY MEDICAL CENTER, Defendant.

No. 3:19-cv-00113

United States District Court, M.D. Tennessee, Nashville Division.

Filed July 21, 2021

Clinton H. Scott, Gilbert McWherter Scott & Bobbitt, PLC, Jackson, TN, Emily Alcorn, J. Brandon McWherter, Jonathan L. Bobbitt, McWherter Scott & Bobbitt PLC, Franklin, TN, for Plaintiff.

Anne M. Frazier, Gail Vaughn Ashworth, Thomas Anderton Wiseman, III, Wiseman Ashworth Law Group PLC, Nashville, TN, for Defendant.

FINDINGS OF FACT AND CONCLUSIONS OF LAW

WAVERLY D. CRENSHAW, JR., CHIEF UNITED STATES DISTRICT JUDGE

This insurance-coverage dispute is about whether Defendant Vanderbilt University Medical Center ("VUMC") owed Plaintiff Dr. Douglas Burka a duty to defend in two state-court lawsuits filed against him. Dr. Burka filed a breach of contract claim against VUMC, alleging that VUMC did not fulfill its duty to defend him under the relevant statement of liability coverage. VUMC, in turn, filed a counterclaim for a declaratory judgment that it had no duty to defend Dr. Burka in those lawsuits.

In denying the parties’ cross-motions for summary judgment (see Doc. No. 115), the Court indicated on the record at the May 13, 2021 hearing how it would rule on certain questions of law in this case, including how to interpret the relevant statement of liability coverage. (See Doc. No. 116). Those rulings are repeated and finalized below in more detail. But because the parties’ arguments on summary judgment focused primarily on how to interpret the statement of liability coverage, the Court reserved for trial the sub-issue of whether Dr. Burka was arguably acting within the scope of his duties for VUMC when he accessed his wife's medical records without authorization.

The Court held a bench trial on July 8, 2021, during which Dr. Burka, Dr. Kyla Terhune (a resident surgeon at VUMC while Dr. Burka worked there), and Terri Hartman (Director of the Privacy Office at VUMC) testified. Based on the record before the Court and the parties’ arguments, the Court finds that Dr. Burka did not meet his burden to show that VUMC owed him a duty to defend.

In support of this conclusion, the Court enters the following Findings of Fact and Conclusions of Law in accordance with Federal Rule of Civil Procedure 52(a).

I. FINDINGS OF FACT¹

A. Dr. Burka's Employment and Job Duties at VUMC

1. Dr. Burka worked as a surgical resident at VUMC from July 1, 2010 through June 30, 2012. (Doc. No. 81 at ¶ 1).

2. There is no written job description for surgical residents at VUMC. But based on the testimony from Dr. Burka and Dr. Terhune, the Court finds that Dr. Burka's job duties included evaluating and examining patients, reviewing their medical records, and supporting the surgical department at VUMC, all under the supervision of a board-certified attending surgeon.

B. Statement of Coverage

3. From July 1, 2010 through June 30, 2011, VUMC provided professional and general liability coverage to VUMC employees, including medical residents like Dr. Burka, through a document titled: Statement of Professional and General Liability Coverage (hereinafter, "Statement of Coverage"). (D. Ex. 1).

4. Section I of the Statement of Coverage, titled "PURPOSE ," provided, in relevant part:

A. Vanderbilt University Medical Center (VUMC) and any company, affiliate, partnership, joint venture, subsidiary, or entity newly acquired or created, will pay on behalf of any Covered Person (as hereinafter defined) all sums which the Covered Person shall become legally obligated to pay as damages or expenses and costs (as hereinafter defined) because of injury to which this Statement of Coverage applies caused by, arising out of, or resulting from an Incident as defined in Section II - Coverage Agreement-Medical Professional Liability and Section III - Coverage Agreement-General Liability which occurs during the term of this Statement of Coverage.

B. VUMC shall have the right and duty to defend any Suit against the Covered Person seeking damages because of such injury even if any of the allegations of the Suit are groundless, false or fraudulent. VUMC may make such investigation and settlement of any Claim or Suit as it deems expedient. VUMC shall not be obligated to pay any claim or judgment or to defend any Suit after the applicable limit of liability has been exhausted by payment of judgments or settlements. The authority for settlement of claims shall be as defined in the Plan Document, Sections I.B.4. and II.B.

...

D. General Definitions

1. When used in this Statement of Coverage, "Coverage" means the protection afforded by this Statement of Coverage.

2. "Suit" includes any action either at law or at equity, as well as any arbitration proceeding to which the Covered Person is required to submit or to which the Covered Person has submitted with VUMC's consent as a defendant.

3. "Covered Person" means any person or organization qualifying under Sections II.B and Section III.B (the "Covered Persons" provisions) of this Statement of Coverage.

4. "Claims" means any action, whether formal or informal, communicating an allegation of wrongdoing or request for money damages.

(Id. at 1–2).

5. Section II of the Statement of Coverage, titled "COVERAGE AGREEMENT – MEDICAL PROFESSIONAL LIABILITY ," provided, in relevant part:

A. VUMC will pay on behalf of any Covered Person (as defined in this section) all sums which the Covered Person shall become legally obligated to pay as damages or expenses and costs (as defined in Section I) because of injury to which this Statement of Coverage applies caused by a Medical Incident, as defined, which occurs during the term of this Statement of Coverage.

B. Definitions

When used in this Statement of Coverage, "Medical Incident" means any act or omission:

1. In the furnishing of professional health care services by the Covered Person, (a) an employee of the Covered Person, or any person acting under the direction, control or supervision of the Covered Person or (b) in the service by any Covered Person as a member of a professional board or committee of VUMC, whether formal or ad hoc, or as a person charged with the duty of executing directives of any such board or committee.

a. In the furnishing of professional health care services, including furnishing or dispensing food, beverages, medications or appliances in connection with such services to a patient at VUMC and its ambulatory services, and in the post-mortem handling of human bodies; or

b. In the service by any Covered Person as a member of a professional board or committee of VUMC, whether formal or ad hoc.

2. Any such act or omission together with all related acts or omissions in the furnishing of such services to any one person shall be considered one Medical Incident.

3. Any incident involving a patient or property of a patient who is on the premises for purposes of treatment is to be deemed a Medical Incident.

C. Covered Persons

Each of the following is a Covered Person under this section of the Statement of Coverage to the extent set forth below:

...

3. Any employee, faculty, clinical fellow, resident, volunteer, executive officer, or director of VUMC while acting within the scope of his or her duties as such, or while acting otherwise at the authorization or direction of VUMC, or while rendering emergency care at the scene of any emergency;

(Id. at 2–3).

6. Section III of the Statement of Coverage, titled "COVERAGE AGREEMENT – GENERAL LIABILITY ," provided, in relevant part, as follows:

VUMC will pay on behalf of any covered person (as defined in this section) all sums which the Covered Person shall become legally obligated to pay as damages or expenses and cost (as defined in Section I) because of injury or damage to property to which this statement of Coverage applies caused by a General Liability Incident, as defined, which occurs during the terms of this Statement of Coverage.

...

A. Definitions

1. When used in this Statement of Coverage, "General Liability Incident" means any situation giving rise to an obligation to pay by reason of the liability imposed by law upon a Covered Person or assumed under contract or agreement by Covered Person because of

a. Personal injury

...

2. "Personal Injury" means bodily injury, mental injury, mental anguish, disease, or disability, including death at any time resulting therefrom, and including injury arising out of false arrest, false imprisonment, wrongful eviction, detention, malicious prosecution, discrimination, humiliation, libel, slander or defamation of character, invasion of rights or tortious interference with contractual relations;

...

B. Covered Persons

The following are considered Covered Persons under this section of the Statement of Coverage:

Vanderbilt University Medical Center, its trustees, officers, employees, including professional staff and physicians, students and volunteers while acting within the scope of their duties for Vanderbilt University Medical Center, its affiliates and subsidiaries, as affiliates and subsidiaries are defined in Section II.B.

(Id. at 4–5).

C. Maine Lawsuit

7. In December 2015, Dr. Burka's ex-wife, Allison Cayne Burka, filed a lawsuit against him in the Maine Superior Court, Case No. 16-CV-20 (hereinafter, "Maine Lawsuit"). (D. Ex. 9).

8. The December 2015 complaint alleges, among other things, that "[Dr. Burka] and [Allison Cayne Burka] have been married since 2010 and resided together in Elizabeth, Maine, since 2014, but they are divorcing and have resided separately since April 2015." (Id. ¶ 2). The subsequent allegations are limited to Dr. Burka's conduct in 2015 and do not mention VUMC.

9. In March 2016, Allison Cayne Burka filed an amended complaint in the same case. (D. Ex. 10). The amended complaint alleges that Dr. Burka and Allison Cayne Burka have resided together in Maine since 2012. (Id. ¶ 2).

10. Paragraphs 5–8 of the amended complaint further allege that:

Many of the acts alleged herein occurred while [Allison Cayne Burka]

...