Morton v. Savannah Hospital
| Citation | 96 S.E. 887,148 Ga. 438 |
| Decision Date | 14 September 1918 |
| Docket Number | 719. |
| Parties | MORTON v. SAVANNAH HOSPITAL. |
| Court | Supreme Court of Georgia |
Syllabus by the Court.
The Savannah Hospital chartered by the General Assembly (Acts of 1835, pp. 131, 132, amended Acts of 1872, p. 256), is authorized and empowered thereby to conduct an institution eleemosynary in character for the public benefit. It was not the intention of the Legislature that the business so conducted might be for the pecuniary gain or benefit of its managers, officers, or others.
The intention of the Legislature in chartering the corporation described in the preceding headnote is fixed and determined by the acts above referred to. In a suit brought against the corporation by a patient, as stated in the second question propounded by the Court of Appeals, the charter provisions are controlling, notwithstanding allegations in the petition.
Under circumstances as enumerated in the third question (although the hospital is a charitable institution, and the general rule is that charitable trust funds are not to be depleted by subjection to liability for negligence), the corporation would be liable, but a recovery would be restricted to income derived from noncharitable sources.
With the exception just stated, an incorporated hospital primarily maintained as a charitable institution, is not liable for the negligence of its officers and employés unless it fails to exercise ordinary care in the selection of competent officers and servants, or fails to exercise ordinary care in retaining such officers and employés.
Where a patient in such an institution is not the recipient of its charity, but is able to pay and does pay for the services and is injured on account of carelessness, negligence, or incompetence of an officer or employé of the institution, the corporation is liable therefor; but the judgment can only subject funds derived strictly from noncharitable pay patients, and for this purpose the petition need not allege that the corporation failed to exercise ordinary care in the selection of its officers and employés or in retaining the same. A judgment so recovered will not subject funds in trust for charitable purposes, unless the petition alleges that the corporation failed to exercise ordinary care in the selection of its officers and employés, or in retaining the same.
The rulings in the foregoing headnotes answer the remaining questions as propounded.
Certified Questions from Court of Appeals.
Action by Daisy Morton against the Savannah Hospital. From a judgment sustaining a demurrer to the petition, plaintiff brought error to the Court of Appeals. Questions certified to the Supreme Court, and questions answered.
See also, 96 S.E. 888.
Shelby Myrick, of Savannah, for plaintiff in error.
Wilson & Rogers, of Savannah, for defendant in error.
The Court of Appeals desires instruction from the Supreme Court upon the following questions, the answers to which are seriated:
1. "Is the corporation originally chartered by the Legislature as the 'Savannah Poorhouse and Hospital' (Acts of 1835, pp. 131, 132), and invested with 'all the powers, rights, privileges, and liabilities incident to a corporation,' authorized and empowered, under the provisions of either the said original act of incorporation or of the amendment thereto (Acts of 1872, p. 256), to conduct only an institution primarily or altogether eleemosynary in character, for the public benefit; or was it the intention of the Legislature that the business of the corporation might be conducted for the pecuniary gain or benefit of its 'managers,' officers or others?" The corporation so chartered by the General Assembly is authorized and empowered, under its charter, to conduct an institution eleemosynary in character for the public benefit. It was not the intention of the Legislature that the business of the corporation might be conducted for the pecuniary gain or benefit of its managers, officers, or others.
2. "If the intention of the Legislature, by the acts of 1835 and 1872 aforesaid, was to charter the corporation, now known as 'Savannah Hospital,' for charitable purposes only, would such intention, as expressed in or to be gathered from the charter itself, fix and...
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