Savage v. Psychiatric Institute of Bedford, Inc., 2-97-041-CV

• Decision Date: 19 March 1998
• Docket Number: No. 2-97-041-CV,2-97-041-CV
• Citation: 965 S.W.2d 745
• Parties: Elena SAVAGE, Appellant, v. PSYCHIATRIC INSTITUTE OF BEDFORD, INC., d/b/a Bedford Meadows Hospital; N.M.E. Psychiatric Properties, Inc.; Psychiatric Institutes Of America, Inc.; N.M.E. Specialty Hospitals, Inc.; National Medical Enterprises, Inc.; and Elizabeth John, M.D. Appellees
• Court: Texas Court of Appeals

Page 745

965 S.W.2d 745

Elena SAVAGE, Appellant, v. PSYCHIATRIC INSTITUTE OF BEDFORD, INC., d/b/a Bedford

Meadows Hospital; N.M.E. Psychiatric Properties, Inc.;

Psychiatric Institutes Of America, Inc.; N.M.E. Specialty

Hospitals, Inc.; National Medical Enterprises, Inc.; and

Elizabeth John, M.D. Appellees

No. 2-97-041-CV.

Court of Appeals of Texas,

Fort Worth.

March 19, 1998.

Jay K. Gray, Chris Cessac, Noteboom & Gray, Hurst, for appellant.

Richard L. Griffith, Evelyn R. Leopold, Cantey & Hanger, L.L.P., Fort Worth, Charles T. Frazier, Jr., Andrea M. Kuntzman, Cowles & Thompson, Dallas, Robert B. Krakow, John R. Crews, C. Glen Morris, Gibson, Dunn & Crutcher, L.L.P., G. Dennis Sheehan, Haynes & Boone, L.L.P., Fort Worth, for appellees.

Before LIVINGSTON, RICHARDS and BRIGHAM, JJ.

OPINION

RICHARDS, Justice.

Introduction

This is an appeal from a summary judgment entered in favor of Psychiatric Institute of Bedford, Inc. d/b/a Bedford Meadows Hospital; N.M.E. Psychiatric Properties, Inc.; Psychiatric Institutes of America, Inc.; N.M.E. Specialty Hospital, Inc.; National Medical Enterprises, Inc.; and Elizabeth John, M.D. ("appellees") and against Elena Savage ("Savage") on her medical malpractice and fraud claims. The trial court granted summary judgment on limitations grounds. In two points, Savage argues that the trial court erred in granting summary judgment because genuine issues of material fact exist regarding (1) whether Savage's fraud claims were brought within the four-year limitation period applicable to fraud claims and (2) whether Savage's health care liability and fraud claims were timely filed because the limitations period was tolled due to appellees' fraudulent concealment. Because we hold that 1) the trial court properly applied the two-year statute of limitations found in article 4590i to all of Savage's claims, including her claim of fraud and that 2) Savage is not entitled to rely on the doctrine of fraudulent concealment, we affirm the summary judgment.

Summary of Facts

In April 1990, when Savage was fifteen years old, she suffered from depression related to her then recent break-up with her boyfriend, stress at school, and her family relationships. Her mother became concerned after she noticed Savage had cried non-stop for about a two-week period. Savage admitted to her mother that she slit one of her wrists after the break-up. Savage asked her mother if she could either leave home or get some help. Based on a recommendation from a family friend, Savage visited with staff members in the adolescent unit at Bedford Meadows Hospital.

The staff concluded that Savage suffered from numerous signs of depression including sleeplessness, frequent bad dreams, lack of energy, variable appetite, weight loss, frequent crying, and feelings of hopelessness and worthlessness. Based on the severity of her problems, the staff at Bedford Meadows encouraged Savage to voluntarily admit herself for in-patient therapy. Savage was voluntarily admitted on April 21, 1990 and was discharged on May 30, 1990. She turned eighteen years old on September 30, 1992.

On August 31, 1995, more than five years after she was discharged from Bedford Meadows and almost three years after she reached the age of eighteen, Savage filed suit against numerous defendants for the treatment she received at Bedford Meadows. Savage alleged generally that she was pressured into voluntarily admitting herself to Bedford Meadows, that she was not allowed to leave the hospital despite many requests, that she was forced to sleep in the hall on one occasion, that she was denied phone privileges several times, and that she was once forced to endure five hours of "time out," all "despite the fact that she had no mental illness requiring in-patient care."

Savage asserted the same causes of action against all appellees: negligence, false imprisonment, intentional infliction of emotional distress, fraud, and violations of the Deceptive Trade Practices Act ("DTPA"). She alleged appellees were negligent in (1) failing to determine whether she met hospital and statutory criteria for voluntary admission, (2) failing to orally notify her of her rights as a patient, (3) failing to provide treatment in the least restrictive appropriate setting, (4) failing to provide an individualized treatment plan, (5) failing to provide adequate medical and psychiatric care, (6) restricting her visits with relatives without proper justification, and (7) detaining her against her will. Savage further alleged that she "was detained wilfully [sic] and unlawfully against her will," which constituted false imprisonment. She argued that appellees' "actions in forcing [her] to remain in Bedford Meadows after it became clear that the institutionalization was extremely stressful" constituted intentional infliction of emotional distress. Finally, Savage alleged that appellees' representations regarding her need for hospitalization, her rights as a patient, and the type of treatment she would receive constituted false, misleading, or deceptive acts or practices in violation of the DTPA.

On April 19, 1996, Dr. John filed a motion for summary judgment on various grounds, including that Savage's claims were barred by the statute of limitations. Thereafter, the court and the parties agreed that all other defendants would submit motions for summary judgment on limitations grounds and that the court would consider the motions solely on that ground. Savage filed a response to the motions and presented her own summary judgment evidence. On October 8, 1996, after considering the pleadings and the evidence and after conducting a hearing on the motions, the trial court granted summary judgment for all appellees on limitations grounds.

Standard of Review

The standard for reviewing a summary judgment is well-established. The movant has the burden of showing that there is no genuine issue of material fact and that it is entitled to judgment as a matter of law. See Nixon v. Mr. Property Management Co., 690 S.W.2d 546, 548 (Tex.1985). When a defendant moves for summary judgment based on an affirmative defense such as the statute of limitations, the defendant, as movant, bears the burden of proving each essential element of that defense. See City of Houston v. Clear Creek Basin Auth., 589 S.W.2d 671, 678 (Tex.1979); Swilley v. Hughes, 488 S.W.2d 64, 67 (Tex.1972).

Once a defendant has established its statute of limitations defense as a matter of law, a nonmovant asserting fraudulent concealment must come forward with proof raising an issue of fact with respect to that claim to defeat summary judgment. See American Petrofina, Inc. v. Allen, 887 S.W.2d 829, 830 (Tex.1994) (citing Nichols v. Smith, 507 S.W.2d 518, 521 (Tex.1974)). Furthermore, a plaintiff must plead and prove application of the discovery rule as an affirmative defense to circumvent the bar of limitations. See Smith v. Knight, 608 S.W.2d 165, 166 (Tex.1980); DeLuna v. Rizkallah, 754 S.W.2d 366, 368 (Tex.App.--Houston [1st Dist.] 1988, writ denied).

Statute of Limitations

The statute of limitations begins to run when a particular cause of action accrues. See S.V. v. R.V., 933 S.W.2d 1, 4 (Tex.1996). Typically, a cause of action accrues when a wrongful act causes injury, regardless of when the plaintiff learns of the injury. See Murray v. San Jacinto Agency, Inc., 800 S.W.2d 826, 828 (Tex.1990). But, when a cause of action accrues in a particular case is a matter of law. See Moreno v. Sterling Drug, Inc., 787 S.W.2d 348, 351 (Tex.1990).

The Medical Liability and Insurance Improvement Act ("article 4590i") governs all health care liability claims, which are defined as:

a cause of action against a health care provider or physician for treatment, lack of treatment, or other claimed departure from accepted standards of medical care or health care or safety which proximately results in injury to or death of the patient, whether the patient's claim or cause of action sounds in tort or contract.

TEX.REV.CIV. STAT. ANN. art. 4590i, § 1.03(a)(4) (Vernon Supp. 1998). Section 10.01 sets the statute of limitations at two years from the occurrence of the tort or the medical or health care treatment. Id. § 10.01 (Vernon Supp.1998). The statute further indicates that the two-year statute of limitations applies regardless of any other law and regardless of minority or any other legal disability, provided that minors under twelve years of age shall have until their fourteenth birthday to file a claim or have it filed on their behalf. See id. However, the Texas Supreme Court has nonetheless applied the statute of limitations found in sections 16.001 and 16.003 of the Texas Civil Practice and Remedies Code for a minor's health care liability claims, holding that "[t]aken together, these sections require a minor to file a claim before reaching age twenty for personal injuries sustained during the period of minority." Weiner v. Wasson, 900 S.W.2d 316, 321 (Tex.1995); see TEX. CIV. PRAC. & REM.CODE ANN. §§ 16.001, 16.003 (Vernon 1986 & Supp.1998).

Common law fraud claims have a four-year statute of limitations. See Williams v. Khalaf, 802 S.W.2d 651, 654 (Tex.1990). The limitations period generally does not begin to run until the fraud is discovered or until it might have been discovered by reasonable diligence. See Little v. Smith, 943 S.W.2d 414, 420 (Tex.1997).

The discovery rule applies if 1) the injury is inherently undiscoverable and 2) the evidence of the injury is objectively verifiable. See Velsicol Chem. Corp. v. Winograd, 956 S.W.2d 529, 531 (Tex.1997); Computer Assocs. Int'l, Inc. v. Altai, Inc., 918 S.W.2d 453, 456 (Tex.1996). The discovery rule only applies in limited circumstances, where at the time the injury arose, the plaintiff did not and could not know of the injury. See, e.g., Willis v. Maverick, 760 S.W.2d 642, 645 (Tex.1988) (discovery of legal malpractice); Bayouth v. Lion Oil Co., 671 S.W.2d 867, 868 (Tex.1984)...