FI RST DI VI SI ON
PHI PPS, C. J.

, ELLI NGTON, P. J.

, and DI LLA RD, J.

N O T IC E : M otions for r e c ons i de r a tion m us t be ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n da y s of the da te of de c is ion to be de e m ed tim e ly file d.

http://w w w .ga a ppe a ls .us /r ule s /

M ar ch 30, 2015



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 2 A1 95 1 . SEW ELL et al . v

. CANCEL et al

.

A1 2 A1 95 2 . FAULK et al . v . CANCEL et al

.

P H I P P S , Ch i ef J u d g e.

Aft er th e an es t h es i o l o g y d ep art m en t of a h o s p i t al u n derwen t a res t ru ct u ri n g,

fo u r an es t h es i ol o g i s t s wh o h ad b een wo rk i n g t h ere u nd er t hei r p ract i ce g ro u p were

n o t s e l e ct ed fo r co n ti n u ed em p l o y m en t

. Al l eg i ng th at t h ey h ad b een wro n g fu l l y

t erm i n at ed b ecau s e t h ey h ad v o i ced co n cern s o f frau d u l en t b i l li n g pract i ces by fel l o w

an es t h es i o l o g i s t s , t he fo u r an es t h es i o l og i s ts

— A n g el Can cel

, M .D., Prav i n J ai n,

M .D., Grace Du q u e-Di zo n , M.D., an d Mo n ajn a San jeev

, M

. D.

— fi l ed s u i t. In cl u d ed

am on g s t t h e defen d an ts t h ey n a m e d

, as h av e s i n ce b een gro u p ed b y th e l i t i g at i n g

p art i es , were: (a) Al v in Sewel l

, M .D., San ji wan Tarab ad k ar, M .D., an d M i l es H.M cDo n al d

, M .D.; an d (b ) Lo u i s Go o l s b y , M .D., A. Do nal d Fau l k

, an d T he M ed i cal

Cen ter o f Cen t ral Geo rg i a, In c. (“ Th e M ed ical Cen t er”).

In o u r d eci s i on at Ca n cel v. S e w e l l

, 1 we rev i ewed sev eral ru l i n g s o n v ari ou s

d efen d an t s ’ m o t i o n s fo r s u m m ary ju d g m en t

. 2 An d fo r reas o ns ex p l ai n ed t h erei n , we

affi rm ed t h e ju d g m en t i n Cas e No . A1 2 A1 9 5 0 ; we rev ers ed i n p art t h e ju dg m en t i n

Cas e No

. A1 2 A1 9 5 1, wh i l e d i s m i s s i n g t h at cas e i n part ; an d we d i sm i s s ed Cas e No

.

A1 2 A1 95 2

. 3 Th e di s m i s s al s were b as ed o n o u r d et erm in at i o n th at t h i s co u rt l ack ed

ju ri s d i ct i o n o f an o rd er t h at h ad b een en t ered aft er t h e fi l i n g o f t h e o ri g i n al n o t i ce o f

ap p eal

. 4 In S

ewel l v. Ca n cel

, 5 t h e Su p rem e Co u rt o f Geo rg ia co ncl u d ed t h at

j u r i s d i ct i o n h ad b een p erfect ed as t o t h at o rd er, an d t h us rev ers ed o u r d eci s i o n

o t h erwi s e an d rem an d ed Cas e No s

. A1 2A1 9 5 1 an d A1 2 A1 95 2 t o u s fo r fu rt h er

1 3 2 1 Ga. Ap p . 5 2 3 (7 4 0 SE2 d 8 7 0 ) (2 0 1 3 ).

2 See i d

.

3 See i d

.

4 See i d . at 5 3 6 -5 3 7 (7 ), 5 3 8 (9 ).

5 2 9 5 Ga. 2 3 5 (7 59 SE2 d 4 8 5 ) (2 0 1 4 ). (Th e Su p rem e Co u rt o f Geo rg i a d en i ed

cert io rari i n Cas e No

. A1 2 A1 9 5 0 ; t h ereaft er, th i s co u rt i s s u ed a rem i t t i t ur i n t h at

cas e.)

2p ro ceed in g s

. 6 Acco rd i n g l y , we v acat e Di v i si o n s 7 an d 9 o f o u r d eci s i o n at Ca n cel v.

S ewel l

, 7 wh i ch d i v i si o n s p ert ai n ed to Cas e N o s

. A 1 2 A 1 9 5 1 an d A1 2A1 9 5 2

. Becau s e

t h e rem ai n der o f o u r o p i ni on at Ca n cel v. S ewel l i s no t i n co ns i s ten t wi t h t h e Su p rem e

Co u rt ’ s deci s io n , i t s t an d s u n ch an g ed

. Th erefo re, m u ch o f t he fact ual an d p ro ced u ral

b ack gro un d d et ai led i n t h at o p i n i o n n eed n o t b e rep eat ed h ere.

In t h e ord er at i s s u e at t h i s ju n ct ure, th e t ri al co urt d en i ed two jo i n t m o t i o n s fo r

s u m m ary ju d g m en t

. In bo t h m o ti o n s , t h e res p ect i v e d efen da nt s h ad ch al len g ed cl ai m s

t h at so u g h t t o h ol d t h em l i ab l e o n t h eo ri es o f b reach o f fi du ci ary d u t y an d frau d.

Di s p os i n g o f t h o se m ot i o n s , t h e t ri al co u rt s u m m ari l y s t at ed i n i t s o rd er t h at “ t h ere are

g en ui n e i s s u es of m at eri al fact s as t o wh et h er t h e . . . Pl ai n ti ffs are en t i t l ed t o rel i ef

fo r t h ei r frau d

, b reach of fi d u ci ary d u t y , an d ai d i n g an d ab et t i n g b reach o f fi d u ci ary

d u t y cl ai m s .” Fo r reas o n s e x p l ai n ed b el o w, we rev ers e t h e j u d gm en t i n Cas e No

.

A1 2 A1 95 1 an d v acat e t h e ju d g m en t i n Cas e No

. A 1 2 A1 9 5 2 an d rem an d th at cas e to

t h e t ri al co urt

.

6 See i d . at 2 3 5 -2 3 6

.

7 Su p ra at 5 36 -5 3 7 (7 ), 5 3 8 (9 ).

3Ca s e No . A1 2 A1 9 5 1

Sewel l

, Tarab ad k ar, an d M cDo n al d ch al l en g e t he d en i al o f t h ei r jo i n t m o t i o n

fo r s u m m ary ju d g m en t o n Co u n t s 4 an d 5 of t h e am en d ed co m p l a i n t

, c o n cern i n g

al l e g a t i o n s o f b reach o f fi du ci ary d u t y an d frau d. Co un t eri ng t h at ch al l en g e, t h e

p l ai n t i ffs reci t e an al l eg at i o n o f t h ei r am en ded co m pl ai nt :

Defen d an t s G o o l s b y , Fau l k

, an d [Th e M ed i cal Cen t er] en gag ed in a

co n s p i r a cy al o n g wi th Defen d an ts Sewel l

, Tarab ad kar an d M cDo n al d

wh i ch res u l t ed in t h e co n s t ru ct i v e d i s s o lu t i o n o f CGAS an d th e

t erm i n at io n o f CGAS co n t ract u al rel at i o ns fo r an es t h es i o l og y s erv i ces

wi t h [Th e M ed i cal Cen t er]

, an d t h e e s t a b l i sh m en t of a n ew gro u p o f

an es th es i ol o g i s t s pro vi d i n g s erv ices t o [Th e M ed i cal Cen t er] u n d er th e

n am e o f Th e Nex u s M ed i cal G ro u p , LLC

, wh ich ex cl ud ed th e

Pl ai n t i ffs

. 8

1

. C on s p i r a cy

. As a prel i m i n ary m at ter, we n o t e t hat “ Geo rg i a law d o e s n o t

reco g n ize an i n d ep en d en t t o rt o f ‘ co n s p i racy .’ ” 9 As th e Su p rem e Co u rt o f Geo rg i a h as

es p o us ed

,

A co n sp iracy is a co m

b i n at i o n o f t wo o r m o re p ers on s t o acco m p l i s h an

u n l awfu l en d o r t o acco m p l i s h a l awfu l en d b y u n lawfu l m ean s

. Accu rat el y s p ea k i ng , t h ere is n o s u ch t h in g as a ci vi l act i o n fo r

8 (Em p h as i s s u p pl i ed .)

9 McMa nu s v. Ta

yl o r , 3 2 6 Ga. Ap p . 4 7 7

, 4 8 4 (3 ) (7 5 6 SE2 d 7 0 9 ) (2 0 1 4 ).

4co n s p i racy

. Th ere i s an act i o n fo r d am ag es cau s ed b y act s p u rs uan t t o a

fo rm ed co n s pi racy , b u t n o n e fo r t h e co n s p i racy al on e. 1 0

Th erefo re, “ [i ] f n o c a us e o f act i o n i s o t h erwi s e al l eg ed

, t h e ad d i t i o n o f al l eg at i on s

co n cern in g co ns p iracy wi ll no t m ak e o n e; b ut

, wh ere a cau s e o f act i o n i s al l eg ed

, t h e

fact o f co n s p i racy , if p ro v ed

, m ak es an y act i o n ab l e deed b y o n e o f t h e co n s p i rat o rs

ch arg eab l e t o al l.” 1 1

In t h ei r ap p el l at e b ri efs

, t h e p l ai nt i ffs m ai n t ai n t h at t hey ad d u ced ev i d en ce o f

t h e t o rt s o f b reach o f fi d u ci ary d u t y an d frau d

.

2

. Br ea ch of Fi du ci a r

y Du t y

. Th e p lai n ti ffs cl ai m , “ T h ere w as a b r e a ch o f

fi du ci ary d u t y b y Sewel l, Tarab ad k ar, an d M cDo n al d b ecau s e t hey ap p ro p ri at ed t h e

as s et s o f CGAS fo r t h e b en efi t o f NEXUS, t o t h e ex cl u s i o n o f Pl ai n t i ffs .”

Th e g rav am en o f t he p l ai n ti ffs ’ cl ai m i s t h at Sewel l

, Ta r a b a d k ar, an d

M cDo n al d b reach ed t h ei r fi d u ci ary d ut i es an d u s u rp ed C G A S ’s co rp o rat e

o p p o rt u ni t i es av ai lab l e th ro u gh CGAS’ s co n tract wi t h Th e M ed i cal Cen t er, wh ereb y

o n l y CGAS wo u l d p ro v i d e an es t h es i o l o gy s erv ices t o Th e M ed i cal Cen t er’ s h o s p i t al

1 0 U. S

. An ch o r Mf

g

. v. Ru l e In d

u s ., 2 64 Ga. 2 95

, 29 7 (1 ) (4 43 SE 2 d 8 3 3 ) (1 9 9 4) (ci t at i o n s , p u n ct uat i o n , an d em p h as i s o m i t t ed ).

1 1 Co o k v. Ro b i n s o n , 2 1 6 Ga. 3 2 8

, 3 2 9 (4 ) (1 1 6 SE2 d 7 4 2 ) ( 1 9 6 0 ) ( c i t at i on s

o m it t ed ).

5i n M aco n

. Each o f t h e fo u r p l ai n t i ffs was a d i rect o r an d s h areh o ld er o f CGAS; each

o f th e fo u r p l ai n t i ffs h ad an em p lo y m en t ag reem en t wi t h CGAS, an d t h ereb y

p ract i ced m ed ici n e at Th e M ed i cal Cen t er’ s h o s pi t al

. Ho wev er, t h e co n t ract b et ween

CGAS an d Th e M ed i cal Cen t er req u ired t h at al l CGAS ph y s ici an s v o l u n tari l y res i g n

f ro m t he m ed i cal s t aff o f T h e M ed i cal Cen t er u p o n term i n at i on o f t h at co n t ract fo r

an y reas o n

. Si m i l a r l y, each em p l o y m en t co n t ract req u i red t he CGAS p hy s i ci an to

res i gn fro m th e s t a ff o f Th e Med i cal Cen t er up o n t erm i n at i o n o f em p l o y m en t wi th

CGAS.

“ [A] cl ai m fo r b reach o f fi d u ci ary d u t y req u i res p ro o f o f t h ree el em en t s : (1 ) t h e

ex i s t en ce o f a fi d uci ary d u t y ; (2 ) b reach o f t hat d u t y ; an d ( 3 ) d am ag e p ro x i m at el y

cau s e d b y t he b reach

. ” 1 2 Ev en accep t i ng , arg u en d o , th at th e p l ai n t i ffs were n ot

req u i red t o b ri n g a d eri v at i v e s u i t

, 1 3 w e ag ree wi t h Sewel l, Tar ab ad k ar, an d

1 2 An s l ey Ma r i ne Co n s tr . v. S wa n b er g , 2 9 0 Ga. Ap p . 3 8 8 , 3 9 1 (1 ) (6 6 0 SE2 d
6 ) (2 0 0 8 ) (p u n ct u at io n an d fo o t n ot e o m i t t ed ).

1 3 See g en eral l y Ph o en i

x Ai r l i n e S

vcs

. v. Met r o Ai r l i n es , 26 0 Ga. 5 8 4

, 5 8 5 (1 ) (3 9 7 SE2 d 6 9 9 ) (1 99 0 ) (“ Th e g en eral ru l e is t h at act i o n s fo r b reach o f fi d u ci ary d u ti es

are t o b e b r o u g h t in d eri v at i v e s u i t s

. . . . Act i o n s s eek i ng t o reco v er fo r u s u rp ed

co rp o rat e o p p o rt u n i ti es bel o n g t o t h e c o r p orat i o n

. ”) (ci t at i o n an d pu n ct u at i o n

o m it t ed ).

6M cDo n al d t h at th e pl ai n t i ffs fai l ed t o ad d u ce ev i d en ce o f an es s en t i al el em en t o f t h ei r

cl ai m

.

Sewel l

, Tarab ad k ar, an d M cDo n al d arg u ed at t h e s u m m ary ju d g m en t h eari n g

t h at t h e p l ai n t iffs h ad fai l ed t o s h o w an y b reach

. In p a r t i c u l ar, th es e d efen d an t s

as s ert ed t h at t h e t erm i nat i o n of CGAS’ s co nt ract w i t h Th e M ed i cal C e n t er h ad n ot

b een p ro cu red b y an y b reach o f fi d u ci ary d u ty

, b u t was t h e i n t e n ded res u l t o f a

d eci s i o n m ad e b y t h e CGAS’ s d i rect o rs / sh areh o l ders

, wh o h ad b een co n fro nt ed wi th

an u n ex p ect ed act i o n t ak en b y Th e M ed i cal Cen t er. E vi d en ce o f t h at act i o n was s et

fo rt h i n o u r earl i er o p i n i o n:

Fau l k (as Pres i d en t/ CEO o f T h e Med i cal Cen t er) s en t a l et t er d at ed
Ap ri l 25

, 2 00 3 t o Can cel (as CEO o f CGAS), ad v i s i n g t h at

, d u e t o t h e

al l eg at i o n s rai s ed ab o u t an d b y cert ai n CGAS rep res en t at i v es , i n cl u d i n g

b eh av i o ral i s s u es an d frau d u len t b i l l i n g p ract i ces , Th e M ed i ca l Cen t er

wa s i n t en d i n g to ca n cel i t s co n t r a ct wi t h CGAS

, ef f ect ive Ma y 3 1

, 2 0 0 3

,
p u rs uan t t o t h e c o n t ract ’ s “ w i t h cau s e” cl au s e, u n l es s CGAS

d em o ns trat ed b y t h at d at e t h at it was i n su b s t an t i al co m p l i an ce wi t h th e

co n t ract

. T h e Ap ri l 25 l et t er dem an d ed t h at CGAS p ro m p tl y ret ai n a

q u al ifi ed i n d ep en d en t co n s u lt i n g fi rm , s u b ject t o Th e M ed i cal Cen t er’ s

ap p ro v al o f b o t h t h e fi rm an d i t s au di t p ro t o co l, t o co n d u ct an au d i t o f

7CGAS’ s b i l l in g p ract i ces an d rep o rt t h e fi n d i n g s t h ereo f t o CGAS an d

t o Th e M ed i cal Cen t er.[ 1 4 ]

Ad d it i on al l y , t he A p ri l 2 5 l et t er an n o u n ced Th e Med i ca l Cen t er ’s i n t en t

t o r es t r u c t u r e i ts a n es t h es i o l o g y d ep a r t men t ef

f ect i ve Feb r u a ry 2 9

, 2 0 0 4

, ev en i f CGAS d em o n s t rat ed i t s co m p l i an ce wi t h th ei r co n t ract o n

o r b efo re M ay 3 1

, 2 0 03

. An d t h e l et t er i nfo rm ed CGAS t hat

, beg i n n i n g

Ma y 1 2

, 2 00 3

, Th e M

ed i ca l Cen t er wo u l d b eg i n a “r ecr u i t men t p r o ces s f o r s t a ff a n es t h es i o l o g

y p o s i t i o n s ” an d t h o s e h i red wo u l d b eco m e i t s

“ em p l o y ees o r i nd ep en d en t co n t ract o rs

. ” Th e l e t t er o u t li n ed t h at an y

CGAS ph y s i ci an in ten d i n g to p ro v i d e s erv i ces i n t h e res t ru ct ured

an es th es i ol o g y

d ep art m en t s h o u l d p ro m p t ly s u bm i t an ap p l i cat i o n an d

t h at

, al t h o u gh Th e Med i ca l Cen t er co u l d n ot g u a ra n tee t ha t a n y memb er

o f CGAS wo u l d b e o

f f er ed a co n tr act of emp l o ymen t wi t h i n th e

r es t r u ct u r ed d

ep a r t men t

, Th e Med i ca l Cen ter wo u ld eva l u a t e ea ch

a p p l i ca t i o n “f

a i r l y, o b j ect i vel y a n d o n i t s i n d ivi d u a l mer i ts

. ” [ 1 5 ]

Co u ns el fo r S e w e l l

, Tarab ad k ar, an d McDo nal d p o si t ed at t h e s u m m ary

ju d g m en t h eari n g t h at Th e M ed i cal Cen t er’ s act io n h ad l eft t h e CGAS p h y s i c i an s

wi t h es s en t i al l y “ t wo ch o i ces [: ] Pro v e b i l l i n g co m pl i an ce an d we’ l l l eav e y o u i n p l ace

u n t i l Feb ru ary 2 9

. If y o u d on ’ t p ro v e i t

, y o u ’ re o ut M ay 3 1

, wh i ch i s a v ery s h o rt t i m e

t o g o fi nd an o t h er jo b

. . . . An d

, s o , i t was n ’ t t hat t h ey h ad a l o t of ch o i ce. I m ean m y

1 4 Ca n cel v. S

ewel l , s u p ra at 5 26 (em

p h as i s s u p p l i ed ).

1 5 Id . (em p h as i s s u p p l ied ).

8p eo pl e [Sewel l, Tarab ad kar, an d M cDo n al d ] d i d n ’ t h av e i t ei th er.” Co u n s el t h en ci t ed

e v i d en ce th at

, wi th i n a few day s o f recei v i n g Fau lk ’ s let t er, t h e C G A S

d i rect o rs / s h areh o l d ers co n v en ed a m eet in g , u l t im at el y d eci d i n g t h at CGAS wo u ld

t erm i n at e i t s co nt ract wi t h Th e M ed i cal Cen t er effect i v e Au g u s t 3 1

, 2 00 3

. Ev i d en ce

o f CGAS’ s res p o n se was d et ai l ed i n o u r earl ier o p i ni o n :

[A] t a CGAS s h areh o l d ers an d di rect o rs m eet i n g on Ap ri l 2 9

, 2 0 0 3

, th e

at t en d ees d i s cu s s ed a co rp o r a t e d i ss o l ut i o n

. Sewel l rep res en t ed t h at a

d i s s ol u t i o n wo u l d s erv e t o rem o v e an y en cu m b ran ces t h at m i g ht s t an d

i n t h e way o f t h e h o s p i t al ’ s res t ru ct u ri n g an d al l o w t he h o s p i t al t o

n eg o t i at e co n t ract s wi t h t h e i n d i v i d u al s o f th e g ro up

. At a M ay 5

, 2 0 0 3

CGAS s hareh o l d ers an d d i rect o rs m eet i n g , a p ro p o s al was u n an i m o us l y

p as s ed t h at t h e CGAS co n t ract wi t h Th e M e d i c a l Cen t er w o u l d

t erm i n at e o n Au g u s t 3 1, 2 0 0 3

. 1 6

Th e m i n u t es fro m t h at M ay 5 m eet i n g rev eal t h at CGAS h ad i t s co rp o rat e co u n s el an d

co m p l ian ce co u n s el p res en t

, an d t h at CGAS’ s co rp o rat e co u n s el h ad pro p o s ed at t h e

s t art o f t h e m eet i ng t h at C G A S’ s co nt ract wi t h Th e M ed i cal Cen ter, as wel l as al l

p h y s i ci a n e m

p l o y m en t co n t ract s wi t h CGAS, b e t erm i n at ed effect i v e Au g u s t 3 1,

2 0 0 3 , s o as t o av o i d earl i er t erm i n at i o n fo r cau s e.

1 6 Id

.

9Aft er t h at m eet i n g , as t h e ev i d en ce s h o wed

, m an y o f t h e CGAS p h y s i ci an s

–

i n cl u d i n g t h e p l ai n t i ffs

– su b m it t ed ap pl i cat io n s to wo rk i n th e res t ru ct u red

d ep art m en t

. 1 7 W h i l e ei g ht CGAS p h y s i ci an s recei v ed o ffers t o jo in t h e res t ru ct u red

d ep art m en t , t h e p l ai n t iffs d i d n o t

.

Di rect o rs an d o ffi cers o f co rp o rat i o n s m u s t di s ch arg e t h ei r d u t i es i n go o d fai th

an d wi t h t h e care o f an o rd i n ari l y p ru d en t p ers o n i n s i m i l ar po s it i o n s

. 1 8 “ Go o d fai th

i s n ot ju s t a q u es t i o n o f wh at is p r o p e r f o r th e co rp o rat i on

. It al s o req u i res t h at t h e

s t ock h o ld ers b e t reat ed fai rl y an d t h at t h ei r i n v es t m en ts b e p ro t ect ed .” 1 9

W e ag ree wi t h Sewel l

, Tarab ad k ar, an d M cDo n al d t h at t h es e a c t i o n s b y t h e

CGAS d i rect o rs / sh areh ol ders (i n cl u di n g t h es e t h ree d efen dan t s ) am o u n ted t o a n

ex erci s e o f t h ei r b u s i n es s ju d g m en t

, b as ed u p o n fact s av ai l ab l e at t h e t i m e an d t h e

1 7 See g en eral l y B a co n v. Vo l vo S vc. Cen t er , 2 6 6 Ga. Ap p

. 5 4 3

, 5 4 6 (3 ) (5 9 7
SE2 d 4 4 0 ) (2 0 0 4 ) (“ [A] n em p l o y ee b reac he s n o fi d u ci ary du t y to t h e em p l o y er s i m

p l y b y m ak i n g p l an s t o en t er a co m p e t i n g b u s i n es s w h i l e h e i s s ti l l em p l o y ed

. Ev en b efo re t h e t erm i n at io n o f h i s ag en cy , h e i s en t i t l ed to m ak e arran g em en t s t o co m p et e

an d u p o n t erm i n at i o n o f em p l o y m en t i m

m ed i at el y co m

p et e. ” ) (ci t at i o n an d

p u n ct u at i o n o m it t ed ).

1 8 OCGA § § 1 4-2 -8 3 0 (a), 1 4 -2 -8 4 2 (a).

1 9 Co mo l l i v. Co mo l l i

, 2 4 1 Ga. 4 7 1, 47 4 (1 ) (2 4 6 SE2 d 2 78 ) (1 9 7 8 ) (co n s i d eri n g l an g u ag e i n Co rp o rat i o n Co d e req u iri n g d i rect o rs t o act i n “ g o o d fai t h ”

an d wi t h “ o rd i n ary d i l i g en ce” i n al l t ran sact i o n s ).

10a d v i ce o f co u n s el ; 2 0 an d t h at t h e p l ai n t i ffs fai l ed t o ci te an y ev i d en ce t hat Se w e l l

,

Tarab ad k ar, an d /o r M cDo nal d

, n ev ert h el es s , b reach ed a fi d u ci ary du t y i n co n n ect i o n

wi t h t h e term i nat i o n o f CGAS’ s co n t ract wi t h Th e M ed i c a l C e n t er. 2 1 Th e p l ai n t i ffs

rel y o n Qu i n n v. Ca r di o va s cu l ar Ph ys i ci a n s
, P. C.

, 2 2 wh erei n t h e Su p rem e Co u rt o f

Geo rg i a h el d t h at a ju ry s h ou l d res o l v e al l eg at i o n s o f m i s ap pro p ri at i o n o f b u s i n es s

o p p o rt u ni t y an d b reach o f fi d u ci ary d u t y

. Bu t Qu i n n i s d i s t i n g u i s hab l e. In t h at cas e,

Qu i nn s u ed a p ro fes s i o n al co rp o rat i o n an d her t wo fo rm er as s o ci at es fo r, i nt er al i a,

t h e m i s ap p ro p ri at i o n of b u s i n es s o p p ort u n it y an d v i o l at i o n o f fi d u ci ary d u t i es

. 2 3

Qu i nn an d h er t wo as so ci at es

– al l ph y s i ci an s

– h ad fo rm ed t h ei r co rp o rat io n i n Ap ri l

1 9 8 2 as eq u al s h areh o l d ers

. 2 4 Ab o u t t w o m o n t h s aft erward

, i n J u n e 1 9 8 2

, Q u i n n

2 0 See g en eral ly Ta l la nt v. Execu ti ve Eq u i t i es , 2 32 Ga. 8 0 7

, 8 1 0 ( 2 0 9 SE2 d

1 5 9 ) (1 9 7 4 ) (n o ti n g t h at co u rt s are rel u ct an t t o i n terfere i n m at ters i n v o l v i n g m erel y
t h e ju dg m en t o f t h e m ajo ri t y i n ex erci s i n g co n t ro l o v er co rp o rat e affai rs ).

2 1 See gen eral l y S

o u th ea s t Co n s ul t an t

s v. McCr a r

y En g i n eer i n g Co r

p ., 2 4 6 G a. 5 0 3

, 5 0 8 (2 7 3 SE2 d 1 1 2 ) (1 9 8 0 ) (ex p l ai ni n g t h at t h e i m po s i t i on o f l i ab i l i t y fo r

wro ng fu l ap p ro p ri at io n o f a b u s i n es s o p po rt u n i ty req u i res , i n t er al ia, a s h owi n g t h at

“ t h e ap p ro p ri at ed o p p o rt u ni t y was i n fact a b u s in es s o p p o rt u n i t y ri g h t fu l l y bel o n g i n g
t o th e co rp o rat i o n ”), ci t ed i n Br ewer v. In s i g h t Tech

. , 3 0 1 Ga. Ap p

. 6 9 4

, 6 9 5 (1 ) (6 8 9
SE2 d 3 3 0) (2 0 0 9).

2 2 2 5 4 Ga. 2 1 6 (3 2 6 SE2 d 4 60 ) (1 9 8 5 ).

2 3 Id . at 21 6 -2 1 7

.

2 4 Id . at 21 6

.

11n eg ot i at ed a o n e-y ear co n t ract wi th a h o s p i t al au t h o ri t y , wh ereb y t h e c o rp o rat i o n

wo u l d p ro v i d e card i o l o g y s erv i ces t o t h e h o s p i t al au t ho ri t y

. 2 5 Bu t fi ve m o nt h s l at er,

Qu i nn was g i v en n o t i ce of a m eet i ng o f sh areh o l d ers an d di rect o rs , w hi ch was cal l ed

fo r t h e p u rp o se o f t erm i n at i ng h e r s t a t u s as an o ffi cer an d em p l oy ee o f t h e

co rp o rat i o n. 2 6 Qu i n n t en d ered h er res i g n at i o n as an o ffi cer an d d i rect o r, b u t i n d i cat ed

t h at s h e wi s h ed t o c o n t i n ue wo rk i n g as an em p l oy ee u nd er t he co rp o rat i o n ’ s

ag reem en t wi th t h e h o s p i t al au t h o ri ty

. 2 7 Nei th er o f t h e o t h e r t wo sh areh o l d ers

res p o n d ed ; n o r d i d t h ey s u b s e q u e n t l y al l o cat e t o Qu i n n an y p o rt i on o f t h e

co r p o r a t i o n ’ s acco u n t s recei v ab l e, wh i ch h ad m o u n t ed t o $1 3 8 ,4 7 5 in Decem b er

1 9 8 2

. 2 8 M ean wh i l e, t h e t w o s hareh o l d ers res o l v ed t o t erm i n at e al l t h e act i v i ti es o f t h e

co rp o rat i o n; 2 9 nex t

, t hey fo rm ed a seco n d co rp o rat i o n ; t h en , “ th ro u g h t h ei r o ffi cers

as di rect o rs an d sh areh ol d ers o f t h e f i r s t co rp o rat i o n , t ran s ferred al l as s et s o f t h e fi r s t

2 5 Id

.

2 6 Id

.

2 7 Id

.

2 8 Id

.

2 9 Id . at 21 7

.

12co rp o rat i o n t o t h e n ew co rp o rat i o n

. ” 3 0 Qu in n recei v ed no n ot i ce o f an y o f t h es e

m at t ers

. 3 1 On Au g u st 1

, 1 9 8 3

, t h e n ew co rp o rat i o n s i g ned a co n t ract fo r s erv i ces wi th

t h e s am e h o s p i t al au t h ori ty

. 3 2 Th ro u g h o u t t h i s t i m e, t h e t wo s h areh o l d ers h ad

rem ai n ed as o ffi cers an d d i rect o rs o f t h e fi rs t co rp o rat i o n

. 3 3

W h en s u ed b y Qu i n n , t h e t wo s h areh o l d ers co n t en d ed t h a t t h ere was n o

b u s i n es s o p p o rt u n it y t o b e a p p ro p ri at ed

, p o s it i ng t hat t h e fi rs t co rp o rat i o n h ad

b eco m e u n ab l e t o pro vi de card i o v as cu l ar s erv ices t o th e h o s p i tal au t h o ri ty

. 3 4 Th i s

co n ten t i o n was rej e ct ed b y t h e Su p rem e Co urt

, wh i ch d et erm i n ed t h at t h e reco rd

au t h o ri zed a ju ry

t o fi n d t hat

t h i s cl ai m ed i n ab i l i t y was n o t h i n g m o re t h an t h e res u l t o f t h e refu s al b y [t he t wo s h areh o l ders ] to p erfo rm m ed i cal s erv i ces o n b eh al f o f t h e fi rs t

co rp orat i o n

. . . . A ju ry

m i g h t fi n d t hat , t h ro u gh m ean s o f s uch refu s al

, [t ho se two s h areh o l d ers ] p u r p o s efu l l y d es t ro y ed t h e ex p ect at i o n o f

3 0 Id . (em p h as i s s u p p l ied ).

3 1 Id

.

3 2 Id

.

3 3 Id

.

3 4 Id . at 21 9 (4 ).

13ren ewal wh i ch ri g h tfu l l y b el o n g ed t o t h e fi rs t co rp o rat i o n – al l i n

v i o l at i o n o f t h ei r d u t y

t o i t an d t o Qu i n n as m i n o ri t y s h areh o l d er. 3 5

An d w i t h re s p e c t t o t h e al l eg at i on o f b reach of fi d u ci ary d u t y , t h e Co u rt ci t ed

ev i d en ce t h a t t h e as s et s of t h e fi rs t co rp o rat i o n h ad b een “ al ien at ed

. . . i n s ecret ;

Qu i nn was n ot i fi ed o f n o t h i n g; ” 3 6 t he Co u rt ex pl ai n ed t hat a ju ry m i g h t d et erm i n e t h at

t h e d efen d an t s h ad “ p i rat ed away al l t h e as s et s o f t h e fi rs t co rp o rat i o n ,” leav i n g i t as

“ an em p t y s h el l, an d Q u i nn ’ s s hares i n i t b u t a scrap o f pap er

– al l i n v i o l at i o n o f t h ei r

d u t i es o f g o o d fai t h .” 3 7

Th o s e ci rcu m s tan ces wh i ch g av e ri s e t o t ri ab l e i s s u es i n Q u i n n were n o t s h o wn

i n t h e i n s t an t cas e. Des p i t e t h ei r cl ai m , p lai n t i ffs fai l ed t o ev i n ce t h ei r t h eo ry t h at

Sewel l

, Tarab ad k ar, an d / o r McDo n al d b reach ed a fi d u ci ary d u t y b y “ ap p ro pri at [i n g ]

t h e as set s o f CGAS fo r th e ben efi t o f NEXUS, t o t h e ex cl u si o n o f Pl ai n t i ffs .”

3 5 Id

.

3 6 Id . at 22 0 (6 ).

3 7 Id

.

14Co n s eq u en t l y , Sewel l

, Tarab ad k ar, an d M cDo n al d we re en t i t l ed t o s u m m ary

ju d g m en t o n t h e cl ai m

o f b reach o f fi d uci ary

d u t y

. 3 8

3

. Fr a u d

. Th e p l ai n ti ffs cl ai m , “ Th e frau d u l en t s ch em e h ere was to in d u ce t h e

CGAS p hy s i ci an s t o v ot e to term i n at e t h e [Th e M ed i cal Cen t er] / CGAS co n t ract

t h em s el v es s o t h at t h e Pl ai n t i ffs co u l d b e t erm i n at ed wi t h o u t th e p ro ced u ral

p ro t ect i o n s o f t he m ed i cal s t aff b y l aws a n d t h e co n t ract u al ri g h t s p ro v id ed b y t h ei r

i n d i v i d u al co n tract s wi t h CGAS.”

“ Th e t ort o f frau d has fi v e el em e n t s : a f a ls e rep res en tat i o n b y a d efen d an t

,

s ci en t er, i n t en t i o n t o i n d u ce t h e p l ai nt i ff t o act o r refrai n fro m act i ng , ju s t i fi ab l e

rel i an ce b y p lai n t i ff, an d d am ag e t o p l ai nt i ff.” 3 9 At t h e s um m ary ju d g m en t h eari n g,

co u ns el fo r Sewel l , Tarab ad k ar, an d M cDo n al d arg ued t h at th e p l ai nt i ffs h ad fai l ed

t o ad d uce an y

ev i d en ce o f a fal s e rep res en t at io n

.

Al t h ou g h t he p l ai nt i ffs m ai n t ai n t h at t h ey were d up ed i n t o vo t i n g t o t erm i n at e

CGAS ’s c o n t ract w i t h Th e M ed i cal Cen ter, t h ey h av e p o i n t ed t o n o ev i d en ce to

3 8 A c c o r d Cl a i r e v. Ru e d e Pa r i s , 2 3 9 Ga. 19 1

, 1 94 (2 3 6 SE2 d 2 7 2) (1 9 7 7 ) (“ Th e ru l e i s fi rm l y

es tab l i s hed t h at wh ere s to ck h o l d ers i n a co rp o rat i o n p art i ci p at e i n t h e perfo rm an ce o f an act

, o r acq u i es ce i n an d rat i fy th e sam e, t h ey are es t o p p e d

t o co m p l ai n t h ereo f.”) (ci t at i o n an d p u n ct u at i o n o m i t t ed ). Cf. Qu i nn , s u p ra.

3 9 Cr a wf o r d v. W i l l i a ms , 2 5 8 Ga. 8 0 6 (3 7 5 SE2 d 2 2 3 ) (1 9 89 ) (ci t at io n o m i t t ed ).

15s u p p ort t h at cl ai m

. Mo reo v er, t h e reco rd sh o ws t h at w h en t h e p lai n t i ffs s i g n ed t h ei r

res p ect i ve em

p l oy m en t a gr e e m e nts wi t h CGAS, t h ey each al s o ex ecu t ed a res i g n at i o n

d o cu m en t t h at was h el d i n es cro w b y CGAS, i n wh i ch t h e y e x p res s l y rel i n q u i s h ed

u p o n t erm i n at i o n “ al l d u e p ro ces s r i g h t s ” u n d er Th e M ed i cal Cen t er’ s b y l aws

. Th e

em pl o y m en t ag reem en t s p ro v i d ed t h at t h e res i g n at i o n d o cu m en t s wo ul d b e t en d ered

t o Th e M ed ical C e n t er u p o n t erm i n at i o n of t h e p hy s i ci an s ’ em p l o y m en t fo r an y

reas on

. As s u ch

, p l ai n t i ffs were aware o f t hes e ram i fi c a t i o n s wh en t h ey v o t ed to

t erm i n at e CGAS’ s co n tract wi t h Th e Med i cal Cen t er. Becau s e t h e p l ai n ti ffs fai l ed to

ad d uce ev i d e n c e of an y fal s e rep res en t at i o n m ad e t o t h em b y Sewel l

, Tarab ad k ar,

an d /o r McDo n al d

, t hes e d efen d an t s were en ti t led t o su m m ary ju d g m en t o n t he cl ai m s

o f frau d

. 4 0 No t h i n g i n Ha yes v. Ha l l ma r

k Ap ar t men t

s 4 1 o r Semi n o l e Pea n ut Co

. v.

Go o d s o n , 4 2 rel i ed u p o n b y

t h e p l ai n t i ffs , p ro v i d es fo r an o u t co m e i n t h ei r fav o r.

4 0 See La u ’s Co r

p

. v. H as ki ns , 2 6 1 Ga. 49 1 (4 0 5 SE2 d 4 7 4 ) (1 9 9 1 ) (rei t erat i n g
t h at wh ere “ t h ere i s n o ev i den ce s u ffi ci en t t o creat e a g en u i n e i ss u e as t o an y es s en t i al
el em en t o f [a] p l ai n t i ff’ s cl ai m , t h at cl ai m t u m b les l i k e a h o u se o f card s ”).

4 1 2 3 2 Ga. 3 0 7 (2 0 7 SE2 d 1 97 ) (1 9 7 4 ).

4 2 1 7 6 Ga. Ap p . 4 2 (3 3 5 SE2 d 1 57 ) (1 9 8 5 ).

16Ca s e No . A1 2 A 19 5 2

G oolsby

, F a

ulk, a nd T he M e dic a l C e nte r (h erei naft er, co l lect i v el y the “ H ospita l

Defen d an t s ”) ch al l en g e t h e d e n i al o f t h ei r jo i n t m o t io n fo r s u m m ary ju d g m en t o n

Co u n t s 4 an d 5

, wh i ch s o ug h t t o h o l d t h em li ab le o n t h eo ri es o f b reach o f fi d u ci ary

d u t y an d frau d

, res pect i v el y

. In t h ei r jo i nt m o t i o n s eek i n g s u m m ary ju d g m en t

, t h ey

arg u ed t h at t h e pl ai n t i ffs h ad fai l ed t o ad d u ce ev i d en ce t o s u p po rt el em en t s o f t h ei r

cl ai m s o f b reach o f fi d u ci ary d u t y an d frau d

. Ad d i t i o n al ly

, t h ey arg u ed th at th ey were

en t i t l ed t o im

m u n it y , p u rs uan t t o OCGA § 3 1-7 -1 3 2

, as t o al l cl ai m s ag ai n s t t h em

. In

t h e o rd er d en y i n g t h ei r jo i n t m o t i o n fo r s u m m ary ju d g m en t

, as s tat ed ab o v e, t h e t ri al

co u rt s u m

m ari l y det erm i n ed t h at “ t h ere are g en u in e i s s u es o f m at eri al fact s as to

wh et h er t h e

. . . Pl ai n t i ffs are en t i t l ed t o rel i ef fo r t h ei r frau d

, b reach o f fi du ci ary d u t y ,

an d ai d i n g an d ab et t i n g b reach o f fi d u ci ary d u t y cl ai m s .”

4

. In t hei r s o le en u m erat ed erro r o n ap p eal

, t he Ho s p it al Defen d an ts co n t en d

t h ey were en t it l ed to i m

m u n it y

. Th ey as s ert t h at t h e p l a i n t iffs ’ cl ai m s aro s e o u t o f

t h ei r (t h e Ho sp i t al Defen d an t s ’ ) d eci s i o n n o t t o ren ew t h ei r (p l ai n t i ffs ’ ) m ed i cal s taff

p ri v i leg es

. Th e Ho s p it al Defen d an ts as s ert t h at

, i n m ak i n g t h o s e d eci s i o n s , th ey were

p erfo rm i n g “ p eer rev iew” act i v i t i es , an d t h erefo re were i m m u ne fr o m l i ab i l i t y

p u rs u an t t o OCGA § 3 1 -7 -1 3 2 (a). It p ro v i d es :

17No p ro fes s i o n al h eal t h care p ro v id er n o r an y i n d i v i d u al wh o s erv es as

a m em ber o r em p lo y ee o f a p ro fes s i on al h eal th care p ro vi d er o r rev i ew

o rg an i zat i o n n o r an y

i nd i v i d u al wh o fu rn i s h es co un s el o r s erv i ces t o a

p ro fes s io nal h eal th care p ro vi d er o r rev i ew org an i zat i o n s h al l be h el d

, b y reas o n o f th e perfo rm an ce of p eer r evi ew act i v i t i es , to h av e v i o l at ed

an y cri m i nal l a w o r t o b e ci v i l l y l i ab le u n der an y l aw u n l es s he w as

m o t i v at ed b y

m al i ce t o ward an y p ers on affect ed b y s u ch act i v i t y

. 4 3

As t h e Ho s p i t al Defen d an t s ack no wl ed g e, t h e S u p r e m e Co u rt o f Geo rg i a

cl ari fi ed i n Ho s

p

. Au th . o f Va l d o s t a & Lo wn es Co u n t

y v. Meeks : 4 4

“ ‘ Peer rev i ew’ m ean s t h e p ro ced u re b y wh i ch p r o f es s i o nal h eal t h care

p ro v i d ers ev al u at e t h e q u al i t y an d effi ci en cy o f s e rvi ces o r d er ed o r

p er f or med by o t h er p ro f

e s s i o n al h eal t h care p ro v i d ers

. . . .”[ 4 5 ] A

“ rev i ew o rg an i zat i o n ” “ en g ag es i n o r u ti l izes peer rev i ews an d g at hers

an d rev i ews in fo rm at i on rel at i n g t o t h e care a n d t reat m en t o f p at ien t s

fo r” cert ai n s p eci fi ed pu rp o s es .[ 4 6 ]

. . . [W ] e h o l d t h at a carefu l read i n g

o f t h es e d efi n i t i o n s rev eal s t h at t h ey ad d res s th e ev a l u a t io n o f th e

q u al it y an d effi ci en cy of a ct u a l med i ca l ca r e s er vi ces an d d o n o t

en co m p as s t h e cred en t i al i n g p ro ces s t o t h e ex t en t t h at ev ery d eci si on t o

4 3 (Em p has is s u pp l i ed .)

4 4 2 8 5 Ga. 5 2 1 (6 7 8 SE2 d 7 1) (2 0 0 9 ).

4 5 OCGA § 3 1 -7 -1 3 1 (1 ).

4 6 OCGA § 3 1 -7 -1 3 1 (3 ) (B).

18ex t en d o r m ai nt ai n s t aff p ri v il eg es i s a p eer rev i ew o r m ed i cal rev i ew

fu n ct i o n

. 4 7

Th e Ho s p i t al Defen dan t s m ai n t ai n t h at t h ey m ad e t h e req u is i t e s h o wi n g s u n d er

Ho s p. Au t h

. o f Va ld o s t a & Lo wn es Co un t

y as fo l l o w s

. Th e Ho s p i t al ci t ed ev i d en ce

t h at i n M ay 2 0 0 3, Th e M ed ical Cen t er creat ed a p an el

– wi t h m em b ers th at i n cl u d ed

Go o l s b y; t h e p sy ch o l o g i cal co n s ul t an t wh o h ad been en g ag ed t o ev al u at e t h e

i n t erp ers o n al dy n am i cs am o n g st t h e CGAS p h y si ci an s ; a s e n i o r CGAS

an es t h es i o l o g i s t (wh o i s n o t a p a r t y t o t h i s li ti g at i o n ); an d t h e d i rect o r o f t h e

h o s p it al ’ s s u rg ery cen t er

– wh i ch i n t erv i ewed an d ev al u at ed t h e CGAS p h y s i c i an s

wh o ap p l i ed fo r po s i t io n s wi t hi n t h e an t i ci p at ed res tru ct u red an es t h es i o l o gy

de pa r tm e nt. Acco rd i ng t o th e Ho s p i t al Defen d an t s , “ [t ] h e act io n t ak en b y t h e Ho s p i t al

Defen d an t s u n d erl y i n g t he cl ai m s is t h e pan el ’ s d eci s io n

. Th at d eci s io n was t h e res u l t

o f p eer rev i e w , a n d, t herefo re, t h e Ho sp i t al Defen d an t s are i m m u n e fro m ci v i l l i ab i l i t y

i n co n nect i o n wi t h t h at p eer rev i ew act i v i ty .”

Th e p l ai nt iffs co u n t er t h at t h e Ho s p i tal D efen dan t s were n o t en t i t l ed to

s u m m ary ju d g m en t b as ed o n i m m u n i t y u n der OCGA § 3 1 -7 -1 3 2 b ecau se t h e p an el

4 7 Ho s p

. Au t h

. o

f Va l d o s t a & L o wn es Co un t y , s u p ra at 5 2 3 (ci t at i o n s an d

p u n ct u at i o n o m it t ed ; em

p h as i s s u p p l i ed ).

19was n o t ev al u at i n g t h e q u al i t y an d effi ci en cy o f a ct u a l med i ca l ca r e s er vi ces (t h at h ad

b een ord ered o r p erfo rm ed b y t h em (t h e p l ai nt i ffs )). Th e p l ai n t i ffs ci t e t h e affi d av i t

t es t i m o ny o f t h e CGAS an es th es i o l o g i st wh o was o n t h e ev al u at i o n p an el :

I w as pres en t fo r each i n t erv iew

. Ea c h i n t erv i ewee was as k ed

ap p ro x i m at el y th e s am e q u es t i o n s , a n d was g i v en a fu l l ch an ce t o

an s wer an d co m

m en t o n t h e t o p ics

. Gen eral l y , t h e i n t er vi ew f o cu s ed o n

th e f u t u r e o f t he Dep a rt men t o

f An es t h es i ol o g

y a t [Th e Med ica l Cen t er ’s

h o s p i t a l ]

, t h e n eed fo r h arm o n i ou s p art i ci pat i o n by al l an es t h es i o l o g is t s

am o n g e a c h o t h er an d wi t h [Th e M ed i cal Cen t er’ s ] s t aff, an d wh et h er

t h e i n terv i ewee co u l d b e a t eam p l ay er i n t h at co n t ex t

. 4 8

Th e H o sp i tal Defen d an t s res p o nd b y ci ti n g o t h er ev i den ce, an d b y rel y i n g o n

o rd ers en t ered b y t h e t ri al co urt

.

(a) Ot h er evi d

en ce

. Th e Ho sp i tal D efen d an t s ci t e t he d ep o s i t i o n t es t i m o n y o f

t h e p s y ch o lo g i s t wh o was o n t he p an el ; sh e d es cri b ed t h at t h e ev al u at i o n s pri m ari l y

ad d res s ed b eh av i o ral i s s u es an d i n -fi g ht in g am o n g s t t he CGAS p h y s ici an s

. Th e

Ho s pi t al Defen d an t s ad d i t i o n al l y ci t e s i m il ar dep o s i t i o n t es t i m o n y b y Go o l s by

reg ard i n g t h e p an el ’ s d et erm i n at i o n t h a t t h e CGAS g ro u p o f p h y s i ci an s was n ot

fu n ct i o n i n g p ro p erl y

– recal l i ng t h a t t h e y h ad b een accu s i n g each ot h er o f b i l l i n g

4 8 (Em p has is s u pp l i ed b y

t h e p l ai n ti ffs i n t h ei r b ri ef.)

20frau d, an d s u m m ari zi n g t h at t h ei r “ i n ab il i ty t o wo rk t o g et h er, t h e co n s t an t in fi g h t i n g,

b i ck eri n g an d o ne-u p m an s h i p ” h ad b eco m e “ i n t o lerab le.”

W e ag ree wi t h t h e pl ai n t i ffs

, h o we v er. Th e ev i d en ce ci t ed h ere d o es n ot

es t ab l i s h t h at t h e p an el

, ev en i f a “ p eer rev iew” co m m i tt ee, was ev al u at i n g t h e q u al i t y

a n d e f f i c i en cy o f “ act u al m ed i cal care s erv i ces ” as co n t em p lat ed b y Ho s

p

. Au t h

. o f

Va l d os t a & Lo wn es Co u n t

y

. 4 9

(b ) Or d er s en t er ed by t h e t r i a l co u r t

. Th e Ho s pi t al Defen d an t s co n t en d

, “ Th e

t ri al co u rt erred i n d en y i ng s u m m ary ju d g m en t t o [t h em ] b ecau se t h e co u rt fo u n d t h at

[Th e M ed i cal Cen t er’ s ] act i o n s u n d erl y i ng t h e cl ai m s were ‘ peer rev i ew act i v i t i es ,’

as d efi n ed b y t h e p eer rev i ew s t at u t e, b u t fai led t o ap p ly t h e i m m u ni t y p ro v i d ed fo r

i n t he s am e s tat u t e. OCGA § 3 1 -7 -1 3 2 .”

Th e reco rd rev eal s t h at t h e t ri al co u r t ap p o i nt ed a s p eci al m as t er t o m ak e

reco m m en d at i o ns u p on disc ove r y m a tte r s, inc luding w he the r Th e M ed i cal Cen t er was

req u i red t o p ro du ce cert a in d ocu m en t s to t h e p lai n t i ffs

, o r t h e d o cu m en t s were

p ro t ect ed b y t h e p eer rev i ew pri v i l eg e as co d i fi ed in OCGA § 3 1 -7 -1 3 3

. Al on g wi th

t h at ap p o i n t m en t, t he tri al co u rt o rd ered

, “ Do cu m en t s cl ai m ed t o b e s u b ject t o t h e

4 9 Su p ra. Cf.

, DeKa lb Med

. Cen t er v. Ob ekp a , 3 15 Ga. Ap p

. 7 3 9

, 7 41 (1 ) (7 2 8
SE2 d 2 6 5) (2 0 1 2).

21m ed i cal p eer rev i ew p ri v i l eg e, wi l l b e p ro vi d ed t o t h e Sp eci al Mas t er, i n ca mer a , fo r

h i s rev i ew fo r h i m

t o m ak e reco m

m en dat i o n s t o t h e Co u rt reg ard i ng t h e v al i d i t y o f

t h e as s ert ed p ri v il eg e.” Th ereaft er, t h e s p eci al m as ter m ad e reco m m en d at i o n s t o t h e

t ri al co urt t h at cert ai n do cu m en t s w ere p ro t ect ed

, a n d t h e t r i al co urt en t ered o rd ers

ad o pt i n g t h e s p eci al m as t er’ s reco m m en d at io n s.

Th u s referri n g t o t h o se o rd ers i n s eek i n g s u m m ary j u d gm en t o n t h e g ro u n d o f

i m m u ni t y , t h e Ho s pi tal Defen d an t s p o s it ed i n t h ei r bri ef: “ Th is Co u rt h a s a l r ea d y

r u l ed t h a t t h e eva l ua t i o n p r o ces s wa s a p eer r evi ew a ct i vi t y

. 5 0 T he Co u rt ’ s ru l i n g was

co rrect

, an d s et t l es t h i s i s su e.” 5 1 Fu rt h er, at t h e su m m ary ju dg m en t h eari n g , co u n s el

fo r t he Ho s p it al D efen dan t s as s ert ed t o t h e co u rt t h at t h ere w as n o q ues t i o n “ t h at t h e

Go o l s b y p ro ces s was a p eer rev i ew p ro ces s as t h i s [c] o urt

, y o u k n o w, h as s o h el d.”

Bu t t h e t ri al co u rt i n t erject ed

, “ Yo u k no w, t h at ’ s s o m et h i n g I’ m n ot s u re ab o u t

, b ut

g o ah ead

. ” W h en co u n sel th en referred t h e co urt t o “ o rd ers t h at h av e b een s i gn ed an d

5 0 [Th e fo o t n o te i n s ert ed h ere wi t h i n t h es e d efen d an t s ’ j o i n t b ri ef s t at ed i n fu l l :

“ J a n u ary 2 5

, 20 10 Ord er (ad o p t i n g Sp eci al M as t er’ s Reco m m en dat i on Reg ard i n g Pl ai n t i ffs ’ M ot i o n fo r Reco ns i d erat i o n th at m at eri al s creat ed

, p rep ared

, an d / o r u s ed
i n t h e ev al u at i on pro ces s fo r res t ru ct u ri n g t h e an es t h es i o l o g y d ep art m en t s ho u l d n ot b e p ro d u ced b ecau s e t h ey are su b ject to peer rev i ew p ri v i l eg e an d t h erefo re p ro t ect ed
fro m d i s cl o s u re).”]

5 1 (Em p has is i n o ri g i n al .)

22ad o pt ed

, y o u k n o w, b y t h e [t ri al co u rt ] accep t i n g th e reco m m en d at i o n s o f t h e Sp eci al

M as t er,” t h e t ri al co u rt res p o n d ed , “ I’ m n o t s u re ab ou t t h e s co p e o f t h at o rd er. . . .”

Gi v en t he ci rcu m s tan ces o f t h i s cas e, i n cl u d i n g t h e s u m m ary o rd er o n ap p eal

, 5 2

we v acat e t h e d en i al of s u m m ary ju d g m en t ; w e rem an d t h e cas e s o t h at th e t ri al co u rt

m ay cl ari fy wh et h er i ts o rd ers ad o p t i n g t h e s p eci al m as t er’ s d i s co ver y

reco m m en d at i o ns fu rt her d et erm i n ed th at

, fo r p u rp o s es o f i m m u n it y u n d er OCGA §

3 1 -7 -1 3 2 (a), t he p an el was a p eer rev i ew co m m i t t ee t h at was ev al uat i n g t h e q u al i t y

an d effi ci en cy

o f act u al m ed i cal care s erv ices

. 5 3

5 2 N o t a b l y , i n ad d i t io n t o t h e rem ark s co n cern i n g t h e s co p e o f t h e o rd ers ad o pt i n g t h e s p eci al m as t er’ s reco m m en d at i o n s , t h e t ri al co urt rep eat ed l y i n d i cat ed

at t h e s um m ary ju d g m en t h eari n g t h at t h ere was ev id en ce fro m wh ich a ju ry co u ld
fi nd m al i ce.

5 3 See M cCa ll v. H

en r y Med

. Cen t er , 2 5 0 Ga. Ap p

. 6 7 9

, 68 2 (1 ) ( 5 5 1 S E2 d

7 3 9 ) (2 0 0 1 ). Cf. DeKa l b Me d

. Cen t er , su p ra at 7 39 -7 4 4 (1 ) (d et erm i n i n g t h at t h e h o s p it al was en t i t l ed t o i m m un it y u n d er OCGA § 31 -7 -1 32 (a), wh ere t he ho s p i t al ’ s i n v es t i g at o ry cred en t i al s co m m i t t ee rev i ewed p h y s i ci an ’ s p at i en t ch art s , fo cu s i n g o n wh et h er t h e ph y s i ci an w as pro p erl y d o cu m en t i n g t h e t reat m en t o f h i s p at i en t s , an d
wh ere t h ere w as n o ev i d en ce t h at t h e peer rev i ew p ro ces s was m o t iv at ed by m al i ce).
See g en eral l y W

i l ken In vs
., LLC v. Pl a mo n d o n , 3 1 0 Ga. Ap p

. 1 46

, 1 4 9 (7 1 2 SE2 d

5 7 6 ) (2 0 1 1 ) (v acat i n g ju d g m en t an d rem an d in g cas e fo r fu rt h e r co n si d erat i o n an d
cl ari fi cat i o n o f o rd er, wh ere ap p el l at e co u rt co u l d n o t d et erm i n e, i nt er al i a, t h e
g ro u nd s fo r t he ru l i n g).

235

. Th e Ho s pi t al Defen d an t s h av e n o t a r g u e d t o t h i s co u rt t h at t he d en i al o f

s u m m ary ju d gm en t s h o u ld b e rev ers ed b as ed u p o n th e o th er g ro u nd s th ey p u rs u ed in

t h e t ri al co u rt

. Co n s eq u en tl y , we d o no t reach t h e p ro p ri et y o f t h e t ri al co u rt ’ s d en i al

o f s u m m ary ju dg m en t i n t h at reg ard

.

Ju d g men t i n A1 2

A1 95 1 r ever

s ed

. Di ll ar d

, J., co n cu r

s
, a n d E l l i n g t o n
, P.J.,

co n cu r s i n j u dg men t

o n l y.

Ju d g men t i n A1 2

A1 9 52 va ca t ed

, a n d ca s e rema n ded

. Di l l a r d

, J., co n cu r

s a s

t o Di vi s i o n 5 a n d co n cu r

s i n j u d g men t o n ly a s t o D i vi s i o n 4

. El l i n g t on
, P. J., co n cu rs

i n j ud g men t o n l y

.

24