Kendrick v. Garcia

• Court: Texas Supreme Court
• Writing for the Court: Jim R. Wright
• Citation: Kendrick v. Garcia, 171 S.W.3d 698 (Tex. 2005)
• Decision Date: 06 October 2005
• Docket Number: No. 11-04-00192-CV.,11-04-00192-CV.
• Parties: Bradley T. KENDRICK and Hendrick Medical Center, Appellants, v. Maria GARCIA, as Administratrix of the Estate of Edward A. Martinez, Appellee.

171 S.W.3d 698

Bradley T. KENDRICK and Hendrick Medical Center, Appellants, v. Maria GARCIA, as Administratrix of the Estate of Edward A. Martinez, Appellee.

No. 11-04-00192-CV.

Court of Appeals of Texas, Eastland.

August 18, 2005.

Rehearing Overruled October 6, 2005.

COPYRIGHT MATERIAL OMITTED

Devon J. Singh, Diana L. Faust, R. Brent Cooper, Cooper & Scully, P.C., Dallas, John E. Spalding, Lauren Beck Harris, Johnson, Spalding, Doyle, West & Trent, L.L.P., Houston, for appellants.

Jeffrey B. Galbreath, Tami Ratliff Morris, Galbreath & Morris, P.C., Rick Dunbar, Abilene, for appellee.

Panel consists of: WRIGHT, J., and McCALL, J.

Opinion

JIM R. WRIGHT, Justice.

This appeal involves some of the recent changes made to the expert report requirements for health care liability claims. See TEX. CIV. PRAC. & REM. CODE ANN. § 74.351 (Vernon 2005). Appellee, Maria Garcia, as Administratrix of the Estate of Edward A. Martinez, filed a medical malpractice claim against appellants, Dr. Bradley T. Kendrick (Dr. Kendrick) and Hendrick Medical Center (HMC), on January 21, 2004. Since the claim was filed after September 1, 2003, the provisions of Section 74.351 apply to appellee's lawsuit. Section 74.351(a) requires a claimant in a health care liability claim to "serve on each party or the party's attorney one or more expert reports" not later than the 120th day after the date the claim is filed. (Emphasis added) Appellants filed motions on May 25, 2004, and June 4, 2004, seeking the dismissal of appellee's claims on the basis that she had not served them with expert reports within 120 days of filing suit as required by Section 74.351(a). See Section 74.351(b). Appellants challenge the trial court's denial of their motions to dismiss in this interlocutory appeal. See TEX. CIV. PRAC. & REM. CODE ANN. § 51.014(a)(9) (Vernon Supp.2004-2005). We reverse and render an order of dismissal.

Underlying Facts

Appellee filed the reports and curriculum vitaes of two experts with the district clerk's office on March 26, 2004, and April 8, 2004.¹ Appellee did not serve appellants with a copy of these documents at the time of filing as required by TEX.R.CIV.P. 21. After appellants filed their motions to dismiss appellee's counsel filed a "certificate of service" for the documents wherein counsel alleged that the two expert reports and curriculum vitaes were served on appellants on April 12, 2004, "in accordance with the Texas Rules of Civil Procedure, Rule 21a and in compliance with Tex. Civ. Prac. Rem.Code § 74.351." See TEX.R.CIV.P. 21a.

Appellee's counsel detailed the manner in which she provided appellants with a copy of the reports on April 12, 2004, in an affidavit attached to appellee's reply to the motions to dismiss. With respect to Dr. Kendrick, counsel alleged that she placed a copy of the reports in a box located in the district clerk's office that is assigned to the law firm that represented Dr. Kendrick at trial. Counsel also stated that she mailed a copy of the reports to HMC's attorney of record via first class U.S. mail. Appellants' attorneys of record denied receiving the documents at any time prior to the expiration of the 120-day deadline. They contend that they first received a copy of the documents when appellee's counsel faxed a copy to them on May 27, 2004.²

After conducting a brief hearing on the motions to dismiss, the trial court issued a letter ruling announcing its decision to deny the motions. The letter detailed the reasons why the trial court denied the motions. The trial court stated in the letter that appellee "attempted in good faith to notify [appellants]" about the expert reports. With respect to HMC, the trial court stated that appellee complied with Section 74.351. The trial court noted in this regard that HMC did not rebut the allegation that the documents were mailed to its attorney of record on April 12, 2004. With respect to Dr. Kendrick, the trial court stated as follows:

[T]he Court finds that [appellee] has made a good faith effort to comply with [Section] 74.351 by filing said report and vitae on April 8, 2004, and by placing said report and vitae in the attorney's box located in the District Clerk's office. While [appellee's] efforts may not be technically correct or advisable, I believe that the spirit of [Section] 74.351 has been complied with. The Court does not find that placing an expert report and vitae in a box located in the Clerk's office is service under [TEX.R.CIV.P.] 21a. Therefore, [Dr. Kendrick's] Motion to Dismiss for failing to comply with [Section] 74.351 is denied.

After directing appellee's counsel to prepare an order denying the motions to dismiss, the letter concluded with the following sentence: "This letter will be in the file should any higher authority wish to review the Court's reasoning."

The Effect of the Trial Court's Letter Ruling

As a preliminary matter, we must determine the effect, if any, of the trial court's letter ruling. Appellants have essentially treated the letter as the trial court's findings of fact and conclusions of law. This treatment of the letter is not unreasonable given the trial court's statement of its intent for appellate courts to rely on the letter. However, there is some authority which holds that a letter ruling issued prior to the entry of the trial court's order is not competent evidence of the basis for the trial court's judgment. Cherokee Water Company v. Gregg County Appraisal District, 801 S.W.2d 872, 878 (Tex.1990). The trial court in Cherokee Water entered findings of fact and conclusions of law after the entry of judgment. The Supreme Court rejected an attempt to alter the trial court's findings of fact and conclusions of law with a statement contained in a letter ruling issued prior to the entry of judgment.

The holding in Cherokee Water is distinguishable on two grounds. The trial court in this appeal did not enter formal findings of fact and conclusions of law which appellants are attempting to alter with the trial court's letter ruling.³ Additionally, the trial court's statement that it intended for appellate courts to rely on the letter ruling as the basis for its decision is a significant factor. In compliance with the trial court's expressed purpose for the letter, we treat it as competent evidence of the trial court's basis for overruling appellants' motions to dismiss.

Issues on Appeal

Dr. Kendrick raises two issues on appeal. He alleges in the first issue that the trial court abused its discretion by denying his motion to dismiss brought under Section 74.351. Dr. Kendrick's second issue challenges the trial court's reliance on Garcia's "good faith effort" to comply with Section 74.351. HMC raises one issue on appeal that encompasses both of the issues raised by Dr. Kendrick.

Standard of Review

The parties have asserted that the trial court's ruling should be reviewed under an abuse of discretion standard. The Supreme Court held in American Transitional Care Centers of Texas, Inc. v. Palacios, 46 S.W.3d 873, 877-78 (Tex.2001), that expert report determinations made under the former statute are reviewed for abuse of discretion. See Walker v. Gutierrez, 111 S.W.3d 56, 62 (Tex.2003). The Supreme Court based its determination in Palacios on "the plain language" of the former statute. Specifically, the Supreme Court referenced language in the former statute which vested the trial court with discretion wherein it required the court to dismiss the action if "it appears to the court ... that the report does not represent a good faith effort to comply with the definition of an expert report." American Transitional Care Centers of Texas, Inc. v. Palacios, supra at 877. The court also referenced the former statute's declaration that an order of dismissal constituted a sanction and that sanctions are generally reviewed under an abuse of discretion standard. American Transitional Care Centers of Texas, Inc. v. Palacios, supra at 878.

In adopting Section 74.351, the legislature omitted the wording of the former statute upon which the Supreme Court relied in Palacios.⁴ Two commentators have suggested the possibility that the abuse of discretion standard is no longer applicable as a result of this omission. See George C. Hanks, Jr. and Rachel Polinger-Hyman, "Redefining the Battlefield," 67 TEX. B.J. 936, 943 (2004). However, absent authority to the contrary, we will utilize the abuse of discretion standard to review the trial court's decision to deny the motions to dismiss under Section 74.351.

A trial court abuses its discretion if it acts without reference to any guiding rules or principles or acts in an arbitrary or unreasonable manner. Downer v. Aquamarine Operators, Inc., 701 S.W.2d 238, 241-42 (Tex.1985), cert. den'd, 476 U.S. 1159, 106 S.Ct. 2279, 90 L.Ed.2d 721 (1986). When reviewing matters committed to a trial court's discretion, an appellate court may not substitute its own judgment for the trial court's judgment. Walker v. Packer, 827 S.W.2d 833, 839 (Tex.1992). Nor may a reviewing court set aside the trial court's determination unless it is clear from the record that the trial court could only reach one decision. Walker v. Packer, supra at 840. On the other hand, our review of a trial court's determination of the legal principles controlling its ruling is much less deferential. Walker v. Packer, supra at 840. A trial court has no "discretion" in determining what the law is or applying the law to the facts. Walker v. Packer, supra at 840. Thus, a clear failure by the trial court to analyze or apply the law correctly will constitute an abuse of discretion. Walker v. Packer, supra at 840.

Construction of Section 74.351

The resolution of this appeal hinges on the interpretation of two aspects of the new statute. The first element of Section 74.351 under consideration involves a construction of the terms "serve" and "served." The second element to be interpreted is whether an unsuccessful effort to...