Nesson v. Northern Inyo County Local Hospital Dist

In Nesson v. Northern Inyo County Local Hospital Dist. (2012) 204 Cal.App.4th 65, the hospital's medical executive committee (MEC) summarily suspended plaintiff physician Nesson's medical staff privileges and then terminated his contract to provide radiology services. (Id. at pp. 73-74.) The MEC took these actions after "'incidents of substandard and dangerous patient care' and 'abrupt change in Nesson's behavior characterized by volatile and erratic actions.'" (Ibid.) After the termination, Nesson filed a complaint against the hospital for breach of contract, retaliation and discrimination, and the hospital successfully moved to strike the suit under section 425.16. (204 Cal.App.4th at pp. 75-76.) On appeal, Nesson argued that because his claims were based on the termination of his contract to provide services, and not the suspension of privileges resulting from the peer review proceedings conducted by the hospital, section 425.16 did not apply. (Nesson, supra, 204 Cal.App.4th at p. 78.) The court rejected the argument, concluding that the hospital's decision to terminate its contract with Nesson was a direct consequence of the summary suspension of his privileges. (Id. at p. 81.) The court stated "the gravamen of each cause of action asserted by Nesson is that the Hospital somehow acted wrongfully when it terminated the Agreement because Nesson's privileges were summarily suspended, as he was deemed by the MEC to be a likely imminent danger to patient safety." (Id. at p. 83.) The court also noted that Nesson had failed to "cite any evidence of retaliation or discrimination which is not connected with his summary suspension." (Id. at p. 84.)