Opinion ID: 1214398
Heading Depth: 1
Heading Rank: 3

Heading: illegality of oral contract

Text: Haller also appeals the district court's denial of their motion for a directed verdict brought at the close of Miller's case and argues that the alleged oral agreement to refer patients is unenforceable. Miller initially argues that review of the district court's denial of Haller's motion for a directed verdict is premature and some-how improper in that it usurps the function of the trial court. A notice of appeal from an order granting a motion for a new trial under I.A.R. 11(a)(5) is deemed also to include all interlocutory orders entered prior to the order appealed from. I.A.R. 17(e)(1)(A). Haller's motion for a directed verdict was brought at the close of Miller's case. The motion was denied, and the trial continued on the matter to its completion. The denial of Haller's motion for a directed verdict, thus, is an interlocutory order, the appeal of which is proper at this time under I.A.R. 17. Haller argues here that the alleged referral agreement is illegal and void as against public policy. The general rule is that a contract prohibited by law is illegal and hence unenforceable. Williams v. Continental Life & Accident Co., 100 Idaho 71, 73, 593 P.2d 708, 710 (1979). This same rule applies equally to contracts that are violative of public policy. Smith v. Idaho St. Univ. Fed. Credit Union, 114 Idaho 680, 684, 760 P.2d 19, 23 (1988) (citing Quintana v. Anthony, 109 Idaho 977, 981, 712 P.2d 678, 682 (Ct.App.1985)). The question in this case is whether an oral agreement whereby one physician agrees to refer patients to another physician in exchange for an agreement by the latter physician to leave an existing partnership with the former physician is either illegal or against public policy, as a matter of law. The practice of medicine is a privilege granted by the state of Idaho, which retains the authority to license and regulate physicians practicing in this state in order to assure the public health of the citizenry. I.C. § 54-1802. Pursuant to that authority, the Idaho Code provides the state board of medicine with specific grounds for disciplining a licensed physician, which includes: (8) Division of fees or gifts or agreement to split or divide fees or gifts received for professional services with any person, institution or corporation in exchange for referral.