Healthcare Authority for Baptist Health v. Davis

Supreme Court of Alabama

Montgomery County | No. 1090084 | Jan. 14, 2011


Defendant Qualified for State Immunity and Case was Dismissed for lack of Subject Matter Jurisdiction

The Supreme Court of Alabama reviewed the case where the Healthcare Authority for Baptist Health appealed the trial court's denial of its motion for a new trial or remittitur of the judgment against it based on the statutory cap contained in § 11-93-2, Ala. Code 1975. This followed an award for plaintiff Kay E. Davis, as executrix of the estate of Lauree Durden Ellison, for a considerable amount (3.2 million dollars) in a medical malpractice lawsuit. The Supreme Court opinion, however, centered on the issue of whether the Healthcare Authority for Baptist Health is entitled to state immunity as they did not discuss other appeal issues. 

Baptist Health, a private nonprofit corporation operating several hospitals, had entered into a management agreement with the University of Alabama Board of Trustees (the Board) and the University of Alabama at Birmingham Health System (UABHS) following financial difficulties. The Board had decided to form the Healthcare Authority for Baptist Health to manage Baptist Health's acute-care facilities and to arrange for financial support for the Board's academic and research mission. 

Issues arose when Lauree Durden Ellison was treated at one of these facilities, during which it was found that she suffered from methicillin-resistant staphylococcus aureus (MRSA), a bacterial infection resistant to many antibiotics. Ellison later died, and the plaintiff claimed that the hospital did not properly communicate this finding which caused Ellison's death.

In their appeal, the Health Care Authority for Baptist Health had attempted to limit their liability by asserting they were just subject to the $100,000 statutory cap on damages against governmental entities. However, the court did not focus on this particular issue. Instead, the court paid attention to whether the Health Care Authority qualifies for State Immunity and concluded that it does, meaning that the case should be dismissed because the courts did not have the subject-matter jurisdiction over it due to § 14, Ala. Const. 1901 which provides that the State shall never be made a defendant in any court of law or equity.

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