Source: https://law.justia.com/cases/california/supreme-court/3d/24/55.html
Timestamp: 2019-04-24 11:56:11+00:00

Document:
CLEMENS A. HACKETHAL, Plaintiff and Appellant, v. ARTHUR S. WEISSBEIN, Defendant and Respondent.
CLEMENS A. HACKETHAL, Plaintiff and Appellant, v. IRVING L. SPRATT, Defendant and Respondent.
Edward J. Horowitz and Arthur J. Jaffee for Plaintiff and Appellant.
Wilson, Borror & Dunn, Lucien A. Van Hulle, Moore, Graves & Madory and Richard E. Madory for Defendants and Respondents.
Hassard, Bonnington, Rogers & Huber, Howard Hassard, David E. Willett, Charles F. Bond II, Musick, Peeler & Garrett, James E. Ludlam and Charles F. Forbes as Amici Curiae on behalf of Defendants and Respondents.
[1a] The issue here is whether a hearing before the judicial commission of a private medical society is an "official proceeding authorized by law" within the scope of Civil Code section 47.
Plaintiff is a doctor and a specialist in internal medicine. In 1975 he was accused by the public service committee of the San Bernardino County Medical Society (SBCMS) of violating certain principles of ethics of the American Medical Association. Hearings were held before the SBCMS judicial commission, and he was expelled from SBCMS membership. Defendants appeared at the hearing as witnesses and presented derogatory information as to his methods of medical practice.
The first cause of action in each of the three complaints seeks damages on the ground that defendants' testimony was negligently given, in that they did not make reasonable efforts to ascertain the truth and did not reasonably believe that the testimony was warranted by facts known to them. The second cause of action alleges that the testimony was motivated by malice.
Was the medical society hearing "official"?
Goodley v. Sullivant (1973) 32 Cal. App. 3d 619 [108 Cal. Rptr. 451] seems to be the only case that equates private with public. The hearings there were before committees of a private hospital to consider suspension of a doctor's privileges. The court ruled that Ascherman should apply to private hospitals because Business and Professions Code section 2392.5 requires every hospital having five or more doctors to promulgate rules for the operation of the hospital, including rules to help assure the competency of the medical staff.  The mere fact that a statute requires the creating of committees or other groups does not, however, mean that each body so formed is "official." The committees of a private hospital are not government agencies. (Cf. Tobriner & Grodin, The Individual and the Public Service Enterprise in the New Industrial State (1967) 55 Cal.L.Rev. 1247, 1255, fn. 35.) The requirement in subdivision (c) of section 2392.5 that the medical staff be "self-governing" also indicates that the Legislature had no intent to create "official" bodies.
[1b] The Civil Code's original section 47 used the adjective "official" only in subdivision 1 ("official duty") and subdivision 4 ("official proceeding"). Section 47, subdivision 2 read, "In testifying as a witness in any proceeding authorized by law ...."
 Does Civil Code § 43.8 imply that § 47(2)'s, absolute privilege extends to the hearings described in § 43.8?
Section 43.8, enacted in 1974 (and amended in 1975, 1976, and 1977), extends a qualified privilege to communications that are "intended to aid in the evaluation of the qualifications, ..." of a doctor if there is not represented as true any matter not reasonably believed to be true and if the communications are addressed "to any hospital, hospital medical staff, professional society, medical or dental school, professional licensing board or division, committee or panel of such licensing board, peer review committee, or underwriting committee ...." fn. 4 (See also § 43.7, [24 Cal. 3d 61] regarding action "without malice.") The protection of section 43.8 is "[i]n addition to the privilege afforded by Section 47," and "[t]he immunities afforded ... shall not affect the availability of any absolute privilege which may be afforded by Section 47."
Since the Legislature in 1974 apparently intended to create additional immunity, the draftsmen must have concluded that at least some proceedings covered by section 43.8 until then had not been protected by section 47, subdivision 2. The intent seems to have been (1) to provide immunity to bodies not previously protected, and (2) to provide only a qualified immunity for communications made to a variety of medical groups.
The hearing in our case was a section 43.8 hearing, not a section 47, subdivision 2, "official proceeding." The enactment of section 43.8 makes sense because section 47, subdivision 2 applies exclusively to government agencies. The new section extends a qualified privilege to communications made to private groups; it does not imply that those groups benefit too from section 47, subdivision 2's absolute privilege.
Bird, C. J., Mosk, J., and Manuel, J., concurred.
I dissent. The sole issue presented by this case is whether a doctor who was the subject of a local medical association "peer review" disciplinary proceeding may maintain a defamation action against a witness who testified against him at the association's quasi-judicial hearing. It has long been settled both in this state and throughout the country that the testimony of a witness at a judicial proceeding is absolutely privileged and may not be the basis of a defamation action, and just three years ago, in Westlake Community Hosp. v. Superior Court [24 Cal. 3d 62] (1976) 17 Cal. 3d 465 [131 Cal. Rptr. 90, 551 P.2d 410], this court, in an unanimous decision, expressly concluded that this absolute privilege applies to statements made in the course of quasi-judicial proceedings conducted by a medical "peer review" authority without regard to whether the medical body was nominally a governmental or nongovernmental entity.
In arriving at a contrary conclusion in the present case, the majority opinion gives extremely short shrift to our recent, unanimous decision in Westlake, mentioning the case only in passing in a brief footnote at the conclusion of the opinion. (Ante, p. 61, fn. 5.) It does so without discussion of the facts of that case or of our court's analysis of the legal question at issue. As I shall explain, I believe that the Westlake decision is controlling in this matter and directly supports the trial court's action in dismissing the plaintiff's defamation action.
Moreover, contrary to the majority's suggestion, I shall point out that the interpretation of section 47 subdivision 2 adopted in Westlake is not only consistent with the language, purpose and past judicial interpretations of the section but, in addition, is directly confirmed by the most recent legislative action in this area. Finally, I shall explain that the distinction which the majority would draw between quasi-judicial proceedings of governmental and nongovernmental medical entities is both illogical and directly contrary to the parallel treatment that such quasi-judicial proceedings have been accorded in past judicial decisions. For all these reasons, I conclude that the judgment of the trial court should be affirmed.
I begin with this court's recent decision in Westlake. In Westlake, as in the instant case, a doctor who had been disciplined after a quasi-judicial peer review proceeding of a nongovernmental medical entity (in that case, a privately owned hospital) instituted a civil action for damages arising out of the proceeding. In Westlake, unlike the instant case, however, the action was brought against the medical decision-makers in the quasi-judicial proceeding, rather than against a witness. The defendants in Westlake contended that they were entitled to summary judgment on a number of grounds, arguing, inter alia, that plaintiff's action was barred by the absolute privilege of section 47, subdivision 2, the provision at issue here.
We went on in Westlake to find that "the gist of [plaintiff's] claim is not that her injury has been occasioned simply by defendants' malicious statements at the proceedings, but rather that she has been injured by the malicious actions of the hospital and its committee members in revoking her staff privileges" (original italics) (id., at p. 482), and accordingly we concluded that the provisions of Civil Code section 43.7, rather than section 47 subdivision 2, were applicable. The above passage makes it clear, however, that our decision in Westlake expressly determined that "[t]o the extent that plaintiff's present action rests upon an injury resulting from specific ... testimony given by individual defendants during the [nongovernmental, quasi-judicial] proceedings, the action would be precluded ...." Since in the instant case plaintiff's action unquestionably rests entirely on defendant's testimonial statements at the quasi-judicial proceeding, and not on any additional actions taken by the defendant, Westlake upholds the trial court's ruling that section 47, subdivision 2 precludes plaintiff's action.
The majority, virtually ignoring our directly relevant decision in Westlake, base their conclusion that the absolute privilege of section 47, subdivision 2 is inapplicable in this case solely on the fact that the San Bernardino County Medical Society, which conducted the quasi-judicial proceeding, is not formally a "governmental" entity. That fact, of course, in no way distinguishes this case from Westlake or from the similarly relevant Court of Appeal decision in Goodley v. Sullivant, supra. The majority, however, apparently now take the view that the language of section 47, subdivision 2 precludes the provision's application to any nongovernmental proceeding, no matter how similar in nature the proceeding is to a judicial proceeding and without regard to whether the policies underlying section 47, subdivision 2 apply to such a nongovernmental proceeding. As I explain, neither the language, the purpose nor [24 Cal. 3d 64] the long line of decisions interpreting section 47, subdivision 2 supports the majority's restrictive reading of the section. Moreover, as I point out, recent legislative action reveals quite clearly that the Legislature does not concur in the majority's novel interpretation of the section.
The majority imply, however, that the term "official" in section 47, subdivision 2, must be interpreted as synonymous with "governmental" in light of the provisions of section 47, subdivision 1, which provide that "[a] privileged publication or broadcast is one made -- 1. In the proper discharge of an official duty." (Italics added.) The majority apparently intend to suggest that subdivision 1 applies whenever a statement is made by one discharging a "governmental" duty, and that subdivision 2 should similarly be construed to apply to statements made during "governmental" proceedings.
Implicit in all of these prior decisions is the recognition that the public policy of encouraging witnesses to testify, and protecting witnesses when they do so testify, applies with as much force to such medical peer review proceedings as to other "official" administrative proceedings covered by section 47, subdivision 2. As a New Mexico court recently stated in a case arising out of a similar local medical society proceeding: "The policy reasons for according the same privilege to quasi-judicial proceedings involving peer review of alleged professional misconduct are at least equally compelling [as in the case of other proceedings covered by the absolute privilege.] The appropriate professional societies, by exercising peer review, can and do perform a great public service by exercising control over those persons placed in a position of public trust ...." (Franklin v. Blank (Ct.App. 1974) 86 N.M. 585 [525 P.2d 945, 946].) For similar reasons, in recent years an increasing number of our sister jurisdictions have held that statements made during comparable local bar association quasi-judicial proceedings are cloaked with an absolute privilege. (See Ramstead v. Morgan (1959) 219 Ore. 383 [347 P.2d 594, 77 A.L.R.2d 481]; Wiener v. Weintraub (1968) 22 N.Y.2d 330 [292 N.Y.S.2d 667, 239 N.E.2d 540]; McAfee v. Feller (Tex.Civ.App. 1970) 452 S.W.2d 56.) fn. 2 Thus, [24 Cal. 3d 68] both prior judicial authorities and the purpose of section 47, subdivision 2 support the trial court's application of the provision in this case.
Furthermore, recent legislation makes it clear that the Legislature has endorsed the interpretation of section 47, subdivision 2 which the majority now repudiate. As noted above, in 1972, the Court of Appeal in Ascherman v. Natanson, supra, specifically held that the absolute privilege of section 47, subdivision 2 applies to statements made during a quasi-judicial peer review proceeding conducted by a medical committee of a public hospital district. The following year, in 1973, a different Court of Appeal panel held in Goodley v. Sullivant, supra, that the absolute privilege of section 47, subdivision 2 was similarly applicable to statements made during analogous quasi-judicial proceedings conducted by a medical committee of a nongovernmental, privately owned hospital.
In Anton we concluded that section 1094.5 did govern judicial review of such "private" quasi-judicial proceedings, stating in the course of our analysis: "[W]e point out a compelling practical consideration which renders the use of section 1094.5 procedures particularly appropriate in cases of this kind. Section 32000 et seq. of the Health and Safety Code, the so-called Local District Hospital Law, makes specific provision for a hearing in matters of this nature which arise in the context of a public hospital operated by a hospital district ... and the clear applicability of our decision in Pinsker v. Pacific Coast Society of Orthodontists, supra, 12 Cal. 3d 541, insures that such a hearing will be accompanied by the related procedural protections requisite to section 1094.5 review. It would be incongruous, we believe, to hold that the decisions of private hospital boards, which are required by the same decision to be based upon a hearing of substantially identical scope and purport, were to be subject to some different form of review." (19 Cal.3d at p. 818.) The majority's interpretation of section 47, subdivision 2, of course, adopts the very "incongruous" result our court specifically eschewed in Anton.
Although the majority point to no relevant distinctions between the proceedings of "public" and "private" medical review boards, fn. 5 the [24 Cal. 3d 71] majority decree a sharp difference in legal treatment as to the witnesses who testify in such proceedings. Beginning with Pinsker, however, our court has taken pains to emphasize the similarities in both function and responsibilities of public and private bodies in this field (see, e.g., 12 Cal.3d at pp. 553-554; Westlake, supra, 17 Cal.3d at p. 484; Anton, supra) and, indeed, the very foundations of the requirement that professional associations conduct quasi-judicial proceedings in these matters derived, in large part, out of the "public service" status of such organizations. (Pinsker, supra, 12 Cal.3d at pp. 553-554.) The majority's approach in the instant case demonstrates a disturbing lack of sensitivity to these doctrinal considerations.
A decade ago, the New York Court of Appeals was faced with the question of whether statements critical of an attorney that were made in the course of a local bar association grievance proceeding were or were not protected by an absolute privilege. In concluding that the statements enjoyed an absolute privilege, Chief Judge Fuld explained on behalf of a unanimous court: "Assuredly, it is in the public interest to encourage those who have knowledge of dishonest or unethical conduct on the part of lawyers to impart that knowledge to a Grievance Committee or some other body designated for investigation. If a complainant were to be subject to a libel action by the accused attorney, the effect in many instances might well be to deter the filing of legitimate charges. We may assume that on occasion false and malicious complaints will be made. But, whatever the hardship on a particular attorney, the necessity of maintaining the high standards of our bar ... requires that there be a forum in which clients or other persons ... may state their complaints ...." (Wiener v. Weintraub, supra, 292 N.Y.S.2d 667, 669.) In my view, these sentiments have equal application to testimony given at a quasi-judicial hearing of a local medical society.
I would affirm the trial court judgment dismissing plaintiff's defamation action.
"1. In the proper discharge of an official duty.
"2. In any (1) legislative or (2) judicial proceeding, or (3) in any other official proceeding authorized by law; provided, that an allegation or averment contained in any pleading or affidavit filed in an action for divorce or an action prosecuted under Section 137 of this code made of or concerning a person by or against whom no affirmative relief is prayed in such action shall not be a privileged publication or broadcast as to the person making said allegation or averment within the meaning of this section unless such pleading be verified or affidavit sworn to, and be made without malice, by one having reasonable and probable cause for believing the truth of such allegation or averment and unless such allegation or averment be material and relevant to the issues in such action.
"3. In a communication, without malice, to a person interested therein, (1) by one who is also interested, or (2) by one who stands in such relation to the person interested as to afford a reasonable ground for supposing the motive for the communication innocent, or (3) who is requested by the person interested to give the information.
"4. By a fair and true report in a public journal, of (1) a judicial, (2) legislative, or (3) other public official proceeding, or (4) of anything said in the course thereof, or (5) of a verified charge or complaint made by any person to a public official, upon which complaint a warrant shall have been issued.
"5. By a fair and true report of (1) the proceedings of a public meeting, if such meeting was lawfully convened for a lawful purpose and open to the public, or (2) the publication of the matter complained of was for the public benefit."
FN 2. Because the Code Commissioners in 1872 had cited page 317 of 1 Hilliard on Torts (1866), which leads into a discussion of nongovernment proceedings (on pp. 328-329), the 1873-1874 revisers might well have believed that section 47, subdivision 2, if left unamended, would apply to such proceedings.
FN 3. In general there is no legal requirement that members of private bodies take any oath of office. Nor is it required that witnesses before them take a testimonial oath -- which means, of course, that the threat of a perjury charge is generally no deterrent.
FN 4. Civil Code section 43.8 reads: "In addition to the privilege afforded by Section 47, there shall be no monetary liability on the part of, and no cause of action for damages shall arise against, any person on account of the communication of information in the possession of such person to any hospital, hospital medical staff, professional society, medical or dental school, professional licensing board or division, committee or panel of such licensing board, peer review committee, or underwriting committee described in Section 43.7 when such communication is intended to aid in the evaluation of the qualifications, fitness, character, or insurability of a practitioner of the healing arts and does not represent as true any matter not reasonably believed to be true. The immunities afforded by this section and by Section 43.7 shall not affect the availability of any absolute privilege which may be afforded by Section 47."
FN 5. Goodley v. Sullivant, supra, 32 Cal. App. 3d 619, cited approvingly in Westlake Community Hosp. v. Superior Court (1976) 17 Cal. 3d 465, 482 [131 Cal. Rptr. 90, 551 P.2d 410], is disapproved to the extent it is inconsistent with views expressed herein.
FN 2. In addition, numerous courts have recently held the absolute testimonial privilege applicable to statements of witnesses made during contractually authorized arbitration proceedings. (See Neece v. Kantu (Ct.App. 1973) 84 N.M. 700 [507 P.2d 447, 60 A.L.R.3d 1030]; General Motors Corporation v. Mendicki (10th Cir. 1966) 367 F.2d 66; Corbin v. Washington Fire and Marine Insurance Company (D.S.C. 1968) 278 F. Supp. 393, affd. (4th Cir.) 398 F.2d 543. See also Rest.2d Torts, §§ 588 com. (d), 585, com. (c).) Although such arbitration proceedings are intended as an alternative to judicial proceedings, and are being resorted to with increasing frequency, under the majority's interpretation of section 47, subdivision 2 it would appear that witnesses who testify at such proceedings would not enjoy the protection of an absolute privilege simply because the proceeding is not conducted by a governmental body or a public official.
FN 3. As originally introduced, the legislation did not include the introductory clause. At the request of the Assembly Judiciary Committee, to whom the bill was assigned, the Legislative Counsel prepared an opinion which discussed in detail the current state of the law concerning the privileged status of communications to medical bodies, analyzing the Natanson and Goodley decisions at some length and informing the legislators that the decisions had accorded an absolute immunity against defamation actions to statements made in relation to quasi-judicial proceedings of "a state or local professional society or medical staff of a licensed hospital." (Ops.Cal.Legis. Counsel, No. 11581 (June 5, 1974) Libel (Assem. Bill No. 3633 and Assem. Bill No. 3760).) Relying on the legislative counsel opinion, the "bill digest" prepared for the legislators by the Assembly Judiciary Committee states that "The bill provides an absolute privilege in defamation actions." Subsequently, to ensure that the enactment of the new section would not be read as disapproving or overruling the Natanson and Goodley decisions, the introductory clause discussed in text was added to the bill.
FN 4. The majority's alternative explanation of the legislation -- suggesting that the Legislature believed that section 47, subdivision 2 applied only to governmental proceedings and passed section 43.8 to extend protection to private entities -- does not withstand analysis, both because of the Legislature's clear awareness of the Goodley decision and because the terms of section 43.8 itself make it clear that the Legislature did not intend to draw any distinctions between nongovernmental medical bodies ("professional society") and governmental medical bodies ("licensing board or division").
FN 5. Although in one brief footnote (ante, p. 60, fn. 3), the majority imply that a distinction between "public" and "private" proceedings may be warranted either because "there is no legal requirement that members of private bodies take any oath of office" or because "it [is not] required that witnesses ... take a testimonial oath," for a number of reasons neither of these factors provides a basis for distinguishing governmental medical peer review proceedings from nongovernmental proceedings.

References: v. 
 v. 
 v. 
 § 43
 § 47
 § 43
 § 43
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v.