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Keywords

lawsuitnegligenceliabilityappealtrialcorporationvicarious liability

contractnegligencecorporationcommon law

Related Cases

Daly v. Aspen Center for Women’s Health, Inc., 134 P.3d 450

Facts

In 1998, Colleen Daly was treated by a doctor at ACWH, a corporation owned by nurse midwives. After surgery and follow-up treatment, Daly alleged that the doctor negligently dispensed medication, leading to her suffering a stroke. She filed a lawsuit against both the doctor and ACWH, asserting various theories to hold ACWH accountable for the doctor's alleged negligence, despite not claiming that ACWH itself was negligent.

In 1998, Daly was referred to a doctor who worked at ACWH, a corporation owned by nurse midwives. The doctor examined Daly and subsequently performed surgery. The doctor also provided follow-up treatment for bleeding related to the procedure. Daly alleges that, during this follow-up visit, the doctor negligently dispensed medication, causing her to suffer a stroke.

Issue

Whether Aspen Center for Women's Health, Inc. can be held vicariously liable for the alleged negligence of a physician under the corporate practice of medicine doctrine.

Rule

The corporate practice of medicine doctrine prohibits corporations from employing doctors or interfering with a doctor's independent medical judgment, thereby shielding them from vicarious liability for the negligent acts of their physicians.

The corporate practice of medicine doctrine rests on the idea that “it is impossible for a fictional entity, a corporation, to perform medical actions or be licensed to practice medicine.”

Analysis

The court applied the corporate practice of medicine doctrine, determining that ACWH, as a corporation, could not be held liable for the physician's alleged negligence. The court noted that the doctrine prevents corporations from employing doctors or controlling their medical decisions, which is essential for establishing vicarious liability under respondeat superior. Since ACWH was legally incapable of practicing medicine, it could not be held accountable for the doctor's actions.

Because the Colorado Supreme Court continues to recognize the common law corporate practice of medicine doctrine, and because the legislature has not altered the doctrine with respect to corporations owned by nurse midwives, ACWH may not employ doctors, perform medical services, or interfere with a doctor's independent medical judgment. It therefore may not be held accountable under the doctrine of respondeat superior for the doctor's alleged negligence.

Conclusion

The Court of Appeals affirmed the trial court's judgment in favor of ACWH, concluding that the corporate practice of medicine doctrine precluded any liability against the hospital for the physician's alleged negligence.

The judgment is affirmed.

Who won?

Aspen Center for Women's Health, Inc. prevailed in the case because the court found that the corporate practice of medicine doctrine shielded it from liability for the physician's actions.

ACWH argues that a master-servant relationship cannot exist because a written agreement specifies that the doctor is an independent contractor.

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