Community Hosp. of Jackson v. Goodlett

• Decision Date: 20 September 2007
• Docket Number: No. 2006-IA-01596-SCT.,No. 2006-CA-01629-SCT.,2006-IA-01596-SCT.,2006-CA-01629-SCT.
• Citation: 968 So.2d 391
• Parties: COMMUNITY HOSPITAL OF JACKSON, Mississippi d/b/a Community Nursing Home Foundation, Inc., Michelle Daniel and Derwood Boyles v. Bernadette GOODLETT, by and on Behalf of Sarah GOODLETT.
• Court: Mississippi Supreme Court

968 So.2d 391

COMMUNITY HOSPITAL OF JACKSON, Mississippi d/b/a Community Nursing Home Foundation, Inc., Michelle Daniel and Derwood Boyles v. Bernadette GOODLETT, by and on Behalf of Sarah GOODLETT.

No. 2006-IA-01596-SCT.

No. 2006-CA-01629-SCT.

Supreme Court of Mississippi.

September 20, 2007.

Rehearing Denied November 29, 2007.

Marjorie Selby Busching, Jackson, Steven Mark Wann, Heather M. Aby, attorneys for appellants.

John Preston Scanlon, John F. Hawkins, attorneys for appellee.

EN BANC.

CARLSON, Justice, for the Court.

¶ 1. Bernadette Goodlett brought suit against Community Hospital of Jackson, Mississippi, Michelle Daniel, and Derwood Boyles in the Clay County Circuit Court by and on behalf of her mother, Sarah Goodlett, alleging negligence, negligence per se, respondeat superior, and breach of contract due to decubitus ulcers Sarah developed during her stay in the nursing home. After a transfer of venue to the Circuit Court of the First Judicial District of Hinds County, the defendants filed a Motion to Dismiss, or in the Alternative, to Stay Proceedings and Enforce Arbitration Agreement, which was denied by the trial court. This Court granted the defendants' petition for interlocutory appeal in cause number 2006-IA-01596-SCT, consolidated that cause with cause number 2006-CA-01629-SCT, and stayed all proceedings in the trial court pending this Court's decision. Finding error in the trial court's order denying the defendants' motion to dismiss, we reverse the trial court's order and remand this case to the Circuit Court of the First Judicial District of Hinds County for entry of an order consistent with this opinion.

FACTS AND PROCEEDINGS IN THE TRIAL COURT

¶ 2. Sarah Goodlett (Sarah) was admitted to Community Hospital of Jackson, Mississippi (Community),¹ on February 9, 2004. Sarah's daughters, Bernadette² and Carolyn, signed the admission agreement, which also contained an arbitration agreement. Sarah did not sign the admission agreement, as she was unable to sign her name due to complications from a previous stroke. Pat Clack signed as the Facility Representative, and Connie Rex signed as a witness. Neither Bernadette nor Carolyn signed or initialed any individual provision of the contract. Bernadette signed a separate document entitled Resident's Rights.

¶ 3. Sarah developed two decubitus ulcers during her stay at Community which required surgery on August 20, 2004. Bernadette first gave notice by way of a letter to Community of her intention to file suit and requested assistance to expedite the process³ on August 31, 2004. This letter erroneously stated that Sarah's leg had been amputated:

This letter is being sent pursuant to Section 15-1-36(15) of the Mississippi Code of 1972, as amended. This letter is to inform you of our intention to begin action on behalf of Ms. Sarah Goodlett. The basis of the suit is negligence and gross negligence in the care and treatment of Ms. Goodlett at Community Nursing Home, which led to further amputation of her leg.

I have not had the opportunity to obtain records and to have them reviewed by an expert witness. It may be that after such review, we determine that there is no basis for suit. If you are in a position to expedite this process, your assistance would be appreciated.

Michelle Daniel, Community's administrator, sent a reply letter stating that Sarah's leg was not amputated and that Bernadette's counsel must have mistaken Sarah for someone else. On September 8, 2004, Bernadette's counsel sent Daniel another letter, clarifying that the suit was being filed due to decubitus ulcers and again requesting assistance to expedite the process:

This letter is being sent pursuant to Section 15-1-36(15) of the Mississippi Code of 1972, as amended. Please disregard my August 31, 2004 letter. This letter is to inform you of our intention to begin action on behalf of Ms. Sarah Goodlett. The basis of the suit is negligence and gross negligence in the care and treatment of Ms. Goodlett at Community Nursing Home, which led to hospitalization and surgery to treat her decubitus ulcer.

I have not had the opportunity to obtain records and to have them reviewed by an expert witness. It may be that after such review, we determine that there is no basis for suit. If you are in a position to expedite this process, your assistance would be appreciated.

¶ 4. On October 7, 2004, Bernadette's counsel sent Daniel another letter, allegedly accompanied by a medical authorization⁴ signed by Bernadette authorizing the release of Sarah's medical records. On October 20, 2004, Daniel sent Bernadette's counsel a reply letter stating she did not believe that the HIPAA Authorization Form signed by Bernadette was adequate, because Bernadette did not have power of attorney for Sarah. Thus, Daniel refused to provide Sarah's records without Sarah's consent, as this would be a violation of HIPAA. On October 26, 2004, Bernadette's counsel sent Daniel a letter, stating:

With respect to your refusal to provide Ms. Goodlett's medical chart pursuant to 45 CFR § 164.502, I believe you are in violation of that section rather than complying with it. I direct your attention to 164.502(g)(1) and (4)(sic). These sections clearly state that my client, as the personal representative of the deceased, must be provided the chart. Section 164.502(a)(1)(I) permits you to disclose Ms. Goodlett's records to my client. I ask again that you provide the complete medical chart immediately pursuant to Section 164.502(a)(1)(I).

(Emphasis added). On October 28, 2004, Daniel responded in a letter, stating:

We recently received a request from you, dated October 26, 2004, for the medical records related to the above-mentioned resident. In your letter, you stated that Ms. Goodlett is deceased. Ms. Goodlett is CURRENTLY a resident, and therefore NOT deceased. In addition, both of her decubitus ulcers have been healed. She has been participating in group activities and states that she is "very happy to be better."

Although we have noted your letter dated October 7, 2004, we do not believe the authorization is adequate. Ms. Goodlett's daughters (Bernadette and Carolyn) have signed the HIPAA Authorization Form, they do not have Power of Attorney or any other legal authority over their mother. Ms. Sarah Goodlett is paralyzed, but she is of sound mind. To this date, I have no proof of any physician stating Ms. Goodlett is mentally incompetent. It is a violation of Ms. Sarah Goodlett's rights to give her medical records to an attorney without her consent.

(Emphasis in original).

¶ 5. On December 27, 2004, Bernadette filed suit against Community,⁵ Daniel, and Boyles⁶ allegedly by and on behalf of Sarah in the Clay County Circuit Court claiming negligence, negligence per se, respondeat superior, and breach of contract. Bernadette attached an Attorney Certificate, rather than a Certificate of Expert Consultation as required by Miss.Code Ann. § 11-1-58(1) (Supp.2004), which stated:

2. Plaintiff has requested the decedent's medical records, and the records have not been produced. Plaintiff will provide a certificate of expert consultation within ninety (90) days of production of the records.

(Emphasis added). On February 15, 2005, Bernadette's counsel sent Community a letter along with an authorization to obtain Sarah's medical records. Also included was a General Power of Attorney, which stated:

I, Sarah Catherine Goodlett, resident of Hinds County, Mississippi, appoint Bernardett (sic) Goodlett, a resident of Hinds County, Mississippi, as my true and lawful attorney-in-fact with unlimited power and authority to do and perform every act that [I] might, under any circumstances whatsoever, do myself and to do these things as fully as I might do if I were present.

A review of this document reveals that there is an "X" on the signature line for Sarah Catherine Goodlett, and that the document was executed and notarized on January 19, 2005. Sarah was unable to sign her name due to her stroke.

¶ 6. On April 13, 2005, Community filed a motion for a change of venue in the Clay County Circuit Court, requesting that the case be transferred to the Hinds County Circuit Court, where venue was proper. On August 4, 2005, the Clay County Circuit Court entered an agreed order transferring venue to the Circuit Court of the First Judicial District of Hinds County.

¶ 7. On September 22, 2005, Community filed a Motion to Dismiss, or in the Alternative, to Stay Proceedings and Enforce Arbitration Agreement in the Hinds County Circuit Court. On September 29, 2005, Bernadette's counsel sent Community's counsel a letter stating that Sarah had signed a HIPAA release that day at the nursing home, using an "X" for her signature, and requesting Sarah's medical records. On October 13, 2005, Bernadette executed an affidavit which stated:

1. On February 9, 2004, I signed an Admission Agreement as required to admit my mother, Sarah Goodlett, to the Community Nursing Home. At that time, I did not have a power of attorney or any other legal authorization to enter into contracts or waive my mother's rights. Nevertheless, the nursing home required my signature and I signed for the purpose of ensuring, as best I could, that my mother received the much needed healthcare I could not provider (sic) for her.

2. In the agreement on page 5 there was a section that said "Arbitration — please read carefully." By that section, there was a spot for someone's initials. I reviewed the section and did not agree to arbitrate. By not initialing that section I indicated that, to the extent my signature or initials could be argued to bind my mother, I would not agree to the arbitration provision.

3. Also, I verbally informed Pat Clack, who was the representative of the Community Nursing Home, that, to the extent she sought my agreement to arbitrate, I would not agree to arbitration. I further told Ms. Clack that if anything happened to my mother, I wanted to be...