Justia Legal Ethics Opinion Summaries

Appellant Bon Secours-St. Francis Xavier Hospital (the Hospital) was a defendant at trial in the underlying civil case.  On the morning of the trial, Appellants removed the case to federal court for the second time on the same grounds as the initial removal.  The federal district court judge again remanded the case to state court.  The state trial judge, imposed severe sanctions against the Appellants for the delay created by the second removal.  Appellants argued on appeal to the Supreme Court that they should not have been sanctioned for the second removal because it was done in good faith. The Supreme Court agreed with both [the trial judge's] version of the facts and his conclusion that the second removal was not based on good grounds and was interposed solely for delay: "[w]hile Rule 11 is evaluated by a subjective standard, the rule still may be violated with a filing that is so patently without merit that no reasonable attorney could have a good faith belief in its propriety.  We find such is the case here." The Court affirmed the lower court's imposition of sanctions.

Plaintiff suffered a stroke and claimed that the VA hospital failed to properly diagnose and take appropriate measures. He and his wife sued under the Federal Tort Claims Act, 28 U.S.C. 1346(b), 2671-80, and also sued their attorney for malpractice. The district court ruled in favor of the government and the attorney. The Sixth Circuit dismissed an appeal as forfeited because plaintiff had supplied only a transcript of the testimony of the government's expert witness Fed. R. App. P. 10(b)(3) and had failed to supplement. The district court properly refused to sanction plaintiff's attorney for ex parte communication with treating physicians. The court also properly credited the government expert and held that the hospital's actions were not the proximate cause of the stroke.

Plaintiff filed several suits against healthcare groups on behalf of the United States, claiming violation of the Medicare Secondary Payer Act, 42 U.S.C. 1395y(b). No court has ever found that the MSP is a qui tam statute, permitting private attorneys general to sue on behalf of the United States. The Sixth Circuit found plaintiff was on notice of the frivolous nature of his filings from their inception in the Tennessee district courts and remanded for a show-cause hearing on why sanctions should not issue. The district court awarded sanctions to two defendants in amounts of $131,158.50 and $145,431.19. The Sixth Circuit affirmed, but denied an award for the appeal.