$5.7 million verdict upheld in bizarre hospital intimidation case
Doctor claimed he was framed for opposing takeover deal.
The California Supreme Court has upheld a $5.7 million jury verdict against management of a southern California hospital and in favor of a doctor who claimed he was framed when someone planted a bag of illegal drugs and a loaded gun in his car.
A California appellate court overturned a jury verdict awarding Dr. Michael Fitzgibbons $5.7 million, but on August 12, the state Supreme Court said the verdict stands, according to the Association of American Physicians and Surgeons.
In making their ruling, the Justices denied the attempt by hospital management company Integrated Healthcare Holdings to reject the doctor's case.
Fitzgibbons is an infectious disease specialist and former chief of staff of Western Medical Center in Santa Ana, California.
In June 2006, police arrested Fitzgibbons at the hospital after an anonymous 911 call reported a man matching his description had brandished a gun at another driver during a road rage incident, according to The National Advocate.
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Fitzgibbons gave police permission to search his car, where they found a loaded handgun and a pair of gloves. Fitzgibbons protested he was being framed by Integrated Healthcare Holdings, because he had recently defeated them in court, according to The National Advocate.
No charges were brought against Fitzgibbons because his DNA was not found on the weapon, according to court documents.
Fitzgibbons also testified that someone slashed the tires of his vehicle causing it to flip over on the freeway, nearly killing his daughter and two Japanese exchange students, according to the Association of American Physicians and Surgeons.
Local law enforcement refused to investigate the car crash, or evidence that it was a form of retaliation against a whistleblower, the association stated.
Fitzgibbons named former hospital CEO Bruce Mogel as the initiator of the retaliation, according to The National Advocates.
A jury found the CEO responsible, but the trial court threw out the verdict, saying Mogel's "personal grudge against Fitzgibbons" was not within the course and scope of his employment with Integrated Healthcare Holdings, and that there was insufficient evidence to support the jury finding that Integrated was liable for Mogel's conduct, according to The National Advocates.
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Fitzgibbons appealed, and the California 4th Appellate District, Division 3, reinstated the $5.7 million award in April.
Integrated then sought review by the California Supreme Court, which ruled in favor of Fitzgibbons last week.
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The incident allegedly began with Fitzgibbons' opposition in 2005 to Integrated Healthcare Holdings buying the hospital. Fitzgibbon said Integrated did not have the financial resources, according to the association.
When Integrated defaulted on its loan two months after the purchase, Fitzgibbons sent an e-mail to staff alerting them, according to The National Advocates.
Integrated sued Dr. Fitzgibbons, but lost and was ordered to pay his legal fees, according to the association's release.
The August 12 ruling represents nearly a decade of litigation.
"We are left to speculate why the [trial] court ignored the evidence showing Fitzgibbons suffered emotional distress far beyond mere embarrassment and physical manifestations of that distress," the Justices ruled.
"Legal accountability is long overdue for the wrongdoing done by hospital administration against physicians and other medical staff," said Andrew Schlafly, General Counsel for the Association of American Physicians and Surgeons.
Twitter: @SusanMorseHFN
