Teplick v. Moulton (In re Moulton)

Citation116 So.3d 1119
Decision Date25 January 2013
Docket Number1111283.
PartiesEx parte Gordon MOULTON et al. (In re Richard Teplick v. Gordon Moulton et al.)
CourtSupreme Court of Alabama

OPINION TEXT STARTS HERE

Windy C. Bitzer and Jennifer S. Morgan of Hand Arendall, LLC, Mobile, for petitioner.

Richard W. Fuquay of Diamond Fuquay, LLC, Mobile; and Edward L.D. Smith, Mobile, for respondent.

BOLIN, Justice.

Gordon Moulton, the president of the University of South Alabama (“USA”); Stanley Hammack, the vice president for Health Systems at USA and senior hospital administrator; Dr. Ronald Franks, the vice president for Health Sciences at USA; and Dr. Samuel Strada, the dean of the College of Medicine at USA (hereinafter referred to collectively as “the petitioners), petition this Court for a writ of mandamus directing the Mobile Circuit Court to vacate its order denying the petitioners' motion for a summary judgment and to enter an order granting that motion. We grant the petition and issue the writ.

Facts and Procedural History
A. Dr. Richard Teplick's Employment and Termination of that Employment

On May 29, 2001, Dr. Robert A. Kriesberg, the dean of the College of Medicine and vice president for Medical Affairs for USA, notified Dr. Richard Teplick in writing that the position of chief of staff of USA Hospitals was being posted for a period of five days and invited him to complete and return an application, which was enclosed. Kriesberg listed a number of job responsibilities associated with the chief-of-staff position and informed Teplick that the chief of staff would be a member of the senior administration of the Health Systems at USA and would report directly to him. Kriesberg also informed Teplick that the chief of staff would also hold a clinical-faculty appointment and that patient-care activities would account for no more than “20% of effort.” Kriesberg furtherinformed Teplick that the chief of staff's salary would be guaranteed for two years and that thereafter it would be determined on a productivity-based compensation plan. Teplick applied for the chief-of-staff position and was hired on October 1, 2001. Teplick testified that when he was hired he did not enter into any written agreement and no promises were made to him regarding the length of his employment as chief of staff.

Stanley Hammack, as USA's senior hospital administrator, testified that he disagreed with Kriesberg's decision to create the chief-of-staff position because USA was a relatively “small operation” and the chief-of-staff position only added “an extra layer of management.” Hammack stated, however, that he supported Kriesberg's decision to create the chief-of-staff position and to hire Teplick once Kriesberg made the decision to do so. Hammack stated that his disagreement with Kriesberg concerned the “need of the position in general, irrespective of Teplick.” 1

Teplick initially reported directly to Kriesberg. Teplick's duties as chief of staff included serving as a liaison between USA and the medical staff; assisting with discharge planning; assisting with quality-assurance efforts; working with third-party administrators and payors such as Blue Cross–Blue Shield; and participating in various committees relative to cost control and clinical care. In addition to his administrative duties as chief of staff, Teplick testified that he also held three separate professor positions within the USA College of Medicine, including professor of anesthesiology, surgery, and internal medicine. Teplick also stated that he held the position of associate dean within the College of Medicine. Teplick testified that his job duties within the academic positions included performing clinical work two to three months every year and lecturing to residents, fellows, and medical students. Teplick further testified that in addition to his formal job titles and duties he also served on various committees, including overseeing graduate medical education; serving on the Compliance and Ethics Committee; serving on the Billing Compliance Committee; and serving as the USA representative to the Veteran's Administration Hospital in Biloxi, Mississippi. Teplick testified that, despite his various positions and duties, he had no decision-making authority, no direct supervisory authority over anyone, and no authority to hire or fire anyone.

Kriesberg announced his retirement in the fall of 2004, at which time Teplick began reporting to Hammack. Teplick testified that shortly after Hammack became his supervisor Hammack told him that the chief-of-staff position was not needed in the USA system “but that [Teplick's] job was secure” and that he would not hire another Chief-of-staff after [Teplick] left.” Subsequent to Hammack's becoming Teplick's immediate supervisor, some of Teplick's duties and responsibilities were reassigned to others, including his supervisory position over the graduate-medical-education program and his position as compliance officer on the Billing Compliance Committee.

Hammack testified that soon after Kriesberg retired Teplick inquired about the status of the chief-of-staff position and that he informed Teplick that he was “not a fan” of the chief-of-staff position and that he would “see how it works.” Hammack denied telling Teplick that he would not eliminate the chief-of-staff position until after Teplick chose to leave the position. Hammack also explained that some of Teplick's responsibilities and duties were reassignedat that time for the purpose of creating “broader representation, perspective and accountability” because Teplick, as chief of staff, had no one reporting directly to him.

In July 2007, Hammack began discussions with both Franks and Strada regarding the feasibility of eliminating the chief-of-staff position, including discussing the redistribution of Teplick's duties and the projected financial savings from eliminating the position. Franks stated that these discussions centered on both the organizational and financial considerations for eliminating the position of chief of staff. Franks testified that Hammack was philosophically opposed to the chief-of-staff position but that Hammock had not predetermined to eliminate the position at the time these discussions were taking place. Strada also testified that the discussions centered on the organizational and financial aspects of the chief-of-staff position but that he “thought” during these discussions that the decision to eliminate the position had already been made by Hammack.

Hammack stated that he decided in the fall of 2008 to eliminate the chief-of-staff position. Hammack testified that the decision to eliminate the position was based on USA's difficult financial situation at the time and his belief that eliminating the position would streamline USA's operations and bring direct accountability between department chairmen and hospital administration. 2 Hammack testified that he thought eliminating the chief-of-staff position was “the most efficient thing to do and save money at the same time” and that the decision to eliminate the chief-of-staff position was not based on Teplick's job performance. Hammack informed President Moulton of the decision to eliminate the chief-of-staff position, which decision President Moulton approved.

Hammack informed Teplick in a meeting on October 10, 2008, of the decision to eliminate the chief-of-staff position based on USA's financial situation as well as on organizational considerations. Hammack testified that he encouraged Teplick to explore other opportunities within the USA system. On December 29, 2008, Hammack formally notified Teplick by letter that the chief-of-staff position would be eliminated effective March 31, 2009. Teplick's employment was terminated on March 31, 2009, when the chief-of-staff position was eliminated. Teplick was the last to hold the position of chief of staff; his former functions as the chief of staff are now being carried out by others.

Teplick disputes Hammack's contention that USA's difficult financial situation was the reason for eliminating the chief-of-staff position. Hammack testified that, in addition to eliminating the chief-of-staff position, other cost-cutting measures were taken to address USA's precarious financial situation. Hammack testified that medical transcriptions were outsourced, which resulted in a savings of approximately $300,000. Hammack also testified that the air-medical-transport service operated by USA closed in 2002 and that the renal-transplant program closed “several years” later. Teplick contends that the closing of the air-medical-transport service and the renal-transplant program did not occur within close proximity to the time the chief-of-staff position was eliminated, the closing of the air-medical-transport service occurring in 2002 and the closing of the renal-transplant program, according to Hammack, occurring “several” years later. Hammack subsequently clarified that the closing of the renal-transplant program occurred “around 2009.”

Teplick testified that he offered to take a salary reduction in lieu of eliminating the chief-of-staff position but that Hammack rejected this idea. Teplick also notes that no formal cost-benefit study was conducted concerning the chief-of-staff position; no other high-level positions were eliminated; no salary restructuring or other job demotions were carried out; and, in some cases, high-level employees received raises. As for the outsourcing of medical transcriptions, Teplick notes that the employees affected by that outsourcing were allowed to apply for other employment at USA. He also notes that the outsourcing of medical transcriptions did not completely eliminate the function or its costs; rather, it merely reduced costs by contracting the work out.

B. Teplick's Employment Classification

Gerald Gattis, the associate director for Human Resources at USA, testified in his affidavit that Teplick was at all times an at-will administrative employee of USA. Gattis stated that as an...

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