Denman v. St. Vincent Med. Grp., Inc.

• Decision Date: 18 August 2021
• Docket Number: Court of Appeals Case No. 20A-PL-1236
• Citation: 176 N.E.3d 480
• Parties: Rebecca J. DENMAN, M.D., Appellant/Cross-Appellee-Plaintiff, v. ST. VINCENT MEDICAL GROUP, INC., St. Vincent Carmel Hospital, Inc., Appellees/Cross-Appellants-Defendants
• Court: Indiana Appellate Court

176 N.E.3d 480

Rebecca J. DENMAN, M.D., Appellant/Cross-Appellee-Plaintiff,

v.ST. VINCENT MEDICAL GROUP, INC., St. Vincent Carmel Hospital, Inc., Appellees/Cross-Appellants-Defendants

Court of Appeals Case No. 20A-PL-1236

Court of Appeals of Indiana.

Filed August 18, 2021

Rehearing Denied October 29, 2021

Attorneys for Appellant: Kathleen A. DeLaney, Christopher S. Stake, Indianapolis, Indiana

Attorneys for Appellees: Bryan H. Babb, Andrew M. McNeil, Bradley M. Dick, Indianapolis, Indiana

Attorneys for Amicus Curiae Indiana Hospital Association: Angela M. Smith, Andrew B. Howk, Indianapolis, Indiana

Altice, Judge.

Case Summary

[1] In December 2019, a nurse employed by St. Vincent Carmel Hospital (the Hospital) reported that, the prior evening, she had smelled alcohol on the breath of Rebecca J. Denman, M.D. (Dr. Denman) while Dr. Denman was on call and had stopped at the Hospital to check on a patient. About ten days later, Dr. Denman's employer, St. Vincent Medical Group (SVMG), placed Dr. Denman on leave and required her to submit to an alcohol assessment, which ultimately led to an evaluation and six weeks of treatment.

[2] Dr. Denman sued the Hospital, the nurse, and SVMG (collectively Defendants), for, among other things, defamation, fraud, constructive fraud, negligent misrepresentation, tortious interference with an employment relationship, and civil conspiracy. Following the trial court's denial of Defendants’ motions for summary judgment and directed verdict, the jury found in Dr. Denman's favor on all her claims except civil conspiracy, awarding her $4.75 million. The trial court granted Dr. Denman's motion for an award of prejudgment interest, but tolled accrual of post-judgment interest for several months pursuant to a COVID-related Indiana Supreme Court emergency order. Defendants then filed a motion to correct error or for remittitur which the trial court granted in part, finding that the fraud/constructive fraud and negligent misrepresentation damages were duplicative.

[3] In this consolidated appeal, Defendants raise three issues that we combine and restate as:

I. Should the trial court have granted a directed verdict on (1) Dr. Denman's defamation claim, (2) her three reliance-based claims of fraud, constructive fraud, and negligent misrepresentation, and (3) her claim of tortious interference with employment relationship?

Dr. Denman raises the following restated issues:

II. Did the trial court err when it reduced the verdict and judgment against SVMG for fraud, constructive fraud, and negligent misrepresentation from $2.25 million to $1 million?

III. Was Dr. Denman entitled to post-judgment interest on the trial court's award of prejudgment interest, and, if so, was the trial court required to amend the original judgment to add the award of prejudgment interest to it?

IV. Did the trial court err when it temporarily suspended the accrual of post-judgment interest pursuant to the emergency order?

[4] We affirm in part, reverse in part, and remand.

Facts & Procedural History¹

[5] Dr. Denman began her medical career as an OB/GYN with Women's Health Alliance (WHA) in 1996 and has remained with that practice since. In 2015, SVMG purchased WHA from the Hospital, such that SVMG became, and continues to be, Dr. Denman's employer. She holds medical staff privileges at the Hospital.

[6] In December 2017, Dr. Denman was on call at the Hospital from 7:00 a.m. on December 11 to 7:00 a.m. on December 12. Around 6:00 p.m. on December 11, before heading to dinner with her significant other, George McKown, Dr. Denman called the Hospital to check on a patient who was in labor (the patient) and spoke to a new nurse named Andrea. Dr. Denman inquired how the patient was progressing, and Andrea advised Dr. Denman that she had time to go to dinner. While at dinner, Dr. Denman received what she considered a "snarky" text from one of her partners, Dr. Rasbach, about having to evaluate the patient for Dr. Denman. Transcript Vol. III at 35. Dr. Denman immediately called Dr. Rasbach, who said that Andrea had asked her to evaluate the patient per Dr. Denman's request. Dr. Denman advised Dr. Rasbach that she had made no such request, and Dr. Denman was angry at Andrea about the situation.

[7] Dr. Denman left dinner, dropped off McKown at home, and went to the Hospital. Upon arrival, she went directly to the labor and delivery nurses’ station, where there were several nurses present, including Hannah Thornton, who had worked for the Hospital for about ten years and was the charge nurse for that night, and Barb Meyerrose, who had more years of experience than Thornton. It is undisputed that Dr. Denman vented for a couple of minutes about being "pissed" at Andrea. Id. at 184. Dr. Denman recalled that those present at the nurses’ station were seated, including Thornton and Meyerrose, and that the closest she got to any of them was "four to six" feet away. Id. at 62. Dr. Denman "could see anger in [Thornton's] face" as Dr. Denman was venting about the situation with Andrea. Id. at 39, see also id. at 64 (testifying that Thornton "was obviously angry" and "I could tell it in her face").

[8] After venting, Dr. Denman calmed down, apologized, and went into the patient's room to assess her cervical dilation. Although another nurse was assisting with the procedure, Thornton followed Dr. Denman into the room and observed. Dr. Denman determined that the patient could continue to labor and then left the Hospital. Thornton saw nothing unusual or concerning during the time that Dr. Denman was working with the patient.

[9] After Dr. Denman exited the labor and delivery unit, Thornton told Meyerrose that she had smelled "an overwhelming smell of alcohol" on Dr. Denman's breath during the encounter at the nurses’ station, and Thornton asked Meyerrose whether she had smelled it too; Meyerrose stated that she had not. Id. at 175. According to Thornton, Meyerrose told her that since Dr. Denman was gone "there's not much that we can do." Id. at 176. Meyerrose, however, stated that she told Thornton to report it as soon as possible to the Hospital's Director of Nursing, Michelle Slayman.

[10] The next morning, at the end of her shift, Thornton told the incoming charge nurse, Michelle Gerke, about the events of the night and status of patients, as is normal procedure, and she also told Gerke what had occurred at the nurses’ station including having smelled alcohol on Dr. Denman's breath. Gerke agreed with Thornton's plan to email Slayman.

[11] At 7:56 a.m. on December 12, at the end of her shift, Thornton emailed Slayman as follows:

Michelle,

I just wanted to make you aware of some unprofessional behavior displayed by Dr. Denman last night. Feel free to call me today if you want to know more details. 317-xxx-xxxx

Several nurses witnessed Dr. Denman asking Andrea (New hire) to have dr. [sic] Rasbach go assess her pt.

Dr. Rasbach was not on call, and called Dr. Denman to say that she was not able to see her pt.

At this point Denman insisted that she never asked Andrea to talk to Rasbach and became upset.

When she arrival [sic] at the hospital she threw her purse down and loudly yelled in the nurses station about how "pissed" she was at Andrea and she wished that Andrea was still here so that she could let her know how angry she was. At this point she was in my face and I could smell alcohol on her breath.

She quickly apologized, calmed down, and went home for the night.

Barb was present with me; but did not smell the alcohol; so I did not feel like I could approach Denman about it without a witness -- plus she went home and was not conducting any procedures at this time.

This has been bothering me all night; I'm not sure what I should do or say about this behavior.

We had a float from Fishers last night; Amanda- who was upset but [sic] Denman's behavior as well.

Thanks

Hannah

Defendants’ Appendix Vol. V at 15-16; Plaintiff's Exhibit 2.

[12] Meanwhile, Dr. Denman fielded phone calls throughout the night of December 11 and into the morning of December 12, including at least one from Thornton. Dr. Denman returned briefly to the hospital at 5:00 a.m. on December 12, but, after her shift ended at 7:00 a.m., Dr. Denman was off until December 13.

[13] Upon receiving Thornton's email on December 12, Slayman promptly called Thornton and, later that morning, met with Steven Priddy, M.D., the Hospital's Chief Medical Officer, to discuss Thornton's email. On December 13, Dr. Priddy contacted Amy Moon-Holland, M.D., who at the time was managing partner at WHA. Dr. Moon-Holland met with Dr. Priddy on December 13, and, in response to his questions, she shared with him that she and another WHA doctor, Julie Hirsch, M.D., had approached Dr. Denman in 2015 with concerns that she was drinking too much in her personal life, such that her work performance was suffering by such things as arriving late and failing to show up for WHA meetings. At the time, they suggested to Dr. Denman that she seek an evaluation through ISMA's physician assistance program, but Dr. Denman declined to get an evaluation but modified her drinking habits and resumed seeing a therapist.

[14] Dr. Priddy asked Dr. Moon-Holland to document her concerns, and in response, Dr. Moon-Holland reviewed her emails and records and compiled a file that outlined about ten instances in 2015-2017 involving Dr. Denman that either Dr. Moon-Holland observed or were reported to her by staff. These included Dr. Denman speaking to staff in an inappropriate manner and tone in front of patients, forgetting a scheduled surgery, and providing incomplete or inaccurate dictation notes to staff.

[15] At Dr. Priddy's request, Dr. Denman met with Dr. Priddy at his office at the end of her workday on December 13; also present was Dr. Brenda Cacucci, president of the medical staff. Dr. Priddy advised Dr. Denman that a nurse had reported smelling alcohol on her breath on December 11, which was the first time Dr. Denman learned of the allegation. Dr. Denman...