Higley v. Florida Patient's Compensation Fund

• Decision Date: 28 April 1988
• Docket Number: No. 70689,70689
• Citation: 525 So.2d 865,13 Fla. L. Weekly 289
• Parties: 13 Fla. L. Weekly 289 Sue A. HIGLEY, et al., Petitioners, v. FLORIDA PATIENT'S COMPENSATION FUND, Respondent.
• Court: Florida Supreme Court

Page 865

525 So.2d 865

13 Fla. L. Weekly 289

Sue A. HIGLEY, et al., Petitioners, v. FLORIDA PATIENT'S COMPENSATION FUND, Respondent.

No. 70689.

Supreme Court of Florida.

April 28, 1988.

Rehearing Denied June 20, 1988.

Richard A. Sherman and Rosemary B. Wilder of the Law Offices of Richard A. Sherman, P.A., Fort Lauderdale, for petitioners.

Craig A. Dennis of Collins, Dennis & Williams, P.A., Tallahassee, for respondent.

KOGAN, Justice.

The Fourth District Court of Appeal has certified the following question as one of great public importance:

MAY THE FLORIDA PATIENT'S COMPENSATION FUND MAINTAIN AN ACTION FOR INDEMNITY AGAINST A NEGLIGENT EMPLOYEE OF A HOSPITAL MEMBER OF THE FUND ON WHOSE BEHALF THE FUND HAS PAID A CLAIM PREDICATED SOLELY UPON THE EMPLOYEE'S NEGLIGENCE Higley v. Florida Patient's Compensation Fund, 506 So.2d 483, 487 (Fla. 4th DCA 1987). This Court has jurisdiction pursuant to article V, section 3(b)(4) of the Florida Constitution. We answer the certified question in the negative and quash the decision of the fourth district.

Sue A. Higley was employed as a nurse at Holy Cross Hospital. A complaint was filed in May, 1980, by Marion Falk against Holy Cross and the Florida Patient's Compensation Fund (Fund) based on an incident which led to the death of the Falk's infant child. Nurse Higley was not a named defendant in the action, but the hospital's liability was predicated solely upon her alleged negligence during the incident.

The hospital had a $100,000 liability insurance policy with St. Paul Fire Insurance Company. In addition, the hospital was a member of the Florida Patient's Compensation Fund which provided the hospital with unlimited coverage over and above the $100,000 provided by St. Paul.

In 1982, the Falk suit was settled before trial when the Fund agreed to pay $425,000 on the hospital's behalf. Subsequently, the Fund filed this action against Nurse Higley and Continental Insurance Company with whom she had a $200,000 professional liability insurance policy. The Fund alleged that it was subrogated to the hospital's right of indemnity against Higley and Continental. The defendants filed a motion for summary judgment, on the ground that section 768.54, Florida Statutes (1979), the act creating the Fund, precluded recovery by the Fund against a hospital employee whose acts were covered by it. The court denied summary judgment and found as a matter of law that Nurse Higley was not insured under the hospital's agreement with the Fund, and that the Fund was not barred from seeking subrogation from her and her insurer. The petitioners agreed to a consent final judgment, and summary judgment was entered in favor of the Fund in the amount of coverage provided by Continental. On appeal the fourth district affirmed the trial court's judgment and certified to this Court the question of great public importance.

Whether the Fund can bring an action for indemnity against Nurse Higley, an employee of the Fund member hospital, rests upon our interpretation of section 768.54(2)(e), Florida Statutes (1979), which reads:

The limitation of liability afforded by the fund for a participating hospital or ambulatory surgical center shall apply to the officers, trustees, volunteer workers, trainees, committee members (including physicians, osteopaths, podiatrists, and dentists), and employees of the hospital or ambulatory surgical center, other than employed physicians licensed under chapter 458, physician's assistants licensed under chapter 458, osteopaths licensed under chapter 459, dentists licensed under chapter 466, and podiatrists licensed under chapter 461. However, the limitation of liability afforded by the fund for a participating hospital shall apply to house physicians, interns, employed physicians in a resident training program, or physicians performing purely administrative duties for the participating hospitals other than the treatment of patients. This limitation of liability shall apply to the hospital or ambulatory surgical center and those included in this subsection as one health care provider (emphasis added).

We find the meaning of the statute is clear and unambiguous and that the emphasized portion reflects the legislature's desire for the Fund's coverage to apply to all employees of the participating hospital or ambulatory surgical center. Furthermore, this interpretation is thoroughly consistent with the legislature's intent to tailor the statute to offset the spiraling malpractice crisis.

The respondents argue that the statute creating the Fund makes coverage available to "health care providers" as defined in section 768.54(1)(b), Florida Statutes (1979). They argue that nurses are not included in the definition of "health care provider;" and, therefore, Nurse Higley is not covered by the Fund. Section 768.54(1)(b) provides:

"Health care provider" means any:

1. Hospital licensed under chapter 395 2. Physician licensed, or physician's assistant certified, under chapter 458.

3. Osteopath licensed under chapter 459.

4. Podiatrist licensed under chapter 461.

5. Health maintenance organization certificated under part II of chapter 641.

6. Ambulatory surgical center licensed under chapter 395.

7. "Other medical facility" as defined in paragraph (c).

8. Professional association, partnership, corporation, joint venture, or other association by the individuals set forth in subparagraphs 2., 3., and 4. for professional activity.

We do not take issue with whether nurses or other employees are included within the definition of "health care provider" under subsection (1). Instead, section 768.54(2)(e) is the proper...