Gower v. Commonwealth
Gower v. Commonwealth
Opinion of the Court
DECISION
In this action, the plaintiff David Gower seeks to recover in excess of $1,000,000 for injuries suffered due to the alleged negligence of staff employees of Dr. Torres Hospital, a government operated medical center. Named as the only defendant to the action is the Commonwealth of the Northern Mariana Islands. The Commonwealth now moves for partial summary judgment limiting the recoverable damages in the action'to $100,000 based on 7 C.M.C. §§2201-2207. For the reasons stated below, the motion is granted.
I.
7 C.M.C. § 2202 provides:
The Commonwealth Government shall not be liable in tort for damages arising from the negligent acts of employees of the Commonwealth acting within the scope of their office or employment; provided, that:
*415 (a) The Commonwealth and any employees engaged in the performance of services on behalf of the Commonwealth shall not be liable in a suit based on the performance of those services for more than $50,000 in an action for wrongful death and $100,000 in any other tort action.[Emphasis added.]
Gower challenges both the validity of the statute generally and as applied to him. His arguments will be addressed in order.
Initially, Gower attacks the underlying doctrine of. sovereign immunity, citing the landmark California Supreme Court case of Muskopf v. Corning Hospital District, 55 Cal.2d 211, 359 P.2d 457, 11 Cal.Rptr. 89 (Cal. 1961), which criticized and rejected the common law application of the doctrine as a defense to liability. While this Court has also questioned the continued vitality of the antiquated concept of sovereign immunity, it has not been presented with the proper opportunity to judicially overturn it. See Maruyama v. MIHA, Civ.No. 82-0066 (D.N.M.I. Decision filed May 24, 1984). This case is no exception. The critical distinction between this case and cases such ás Muskc.)f, a distinction which Gower fails to address, is that the immunity claimed in Muskopf was a judicially recognized common law immunity whereas the defense raised herein is based on legislative enactment. Even the California Supreme Court in Muskopf conceded that the legislature may establish governmental immunity. 11 Cal. Rptr.93. More recently, the same Court again emphasized that while courts will not casually decree immunity, they will honor it where the legislature "has clearly provided for immunity."
Gower challenges the statutory damage, ceiling as violative of equal protection. Essentially, he argues that the statute arbitrarily and capriciously discriminates against seriously injured tort victims, specifically those with injuries exceeding $100,000. Unfortunately for Gower, this argument has recently been rejected by both the Ninth Circuit Court of Appeals, Hoffman v. United States, 767 F.2d 1431 (9th Cir. 1985), and the United States Supreme Court, Fein v. Permanente Medical Group, 38 Cal.3d 137, 695 P.2d 665, 211 Cal.Rptr. 368 (Cal. 1985), appeal dismissed, 85-19, October 1985.
At issue in both cases was the constitutionality of California Civil Code §3333.2 which limited recovery of noneco-nomic damages in medical malpractice actions to $250,000. In Fein, the California Supreme Court addressed constitutional challenges to the legislation by a medical malpractiee victim whose judgment of $500,000 for noneconomic damages was reduced to
Fein also raised an equal protection challenge asserting that the legislation impermissibly discriminated within the class of medical malpractice victims, denying a complete recovery only to those .plaintiffs with damages exceeding $250,000. The Court found this argument "unavailing" as the statutory classification was rationally related to realistic legislative purposes. 211 Cal.Rptr. 386-337.
On direct appeal to the United States Supreme Court, the matter was dismissed for want of a "substantial federal question." Fein v. Permanente Medical Group, 85-19. Such a dismissal is a decision on the merits and carries with it a stare decisis effect which binds state and lower federal courts. Hicks v. Miranda, 422 U.S. 332, 344, 95 S.Ct. 2281, 2289, 45 L.Ed.2d 223 (1975); see 16 C. Wright and A. Miller, Federal Practice and Procedure §4014.
In Hoffman v. United States, supra, the Ninth Circuit
The Ninth Circuit reversed. Finding no suspect class and no infringement of a fundamental right nor a classification otherwise requiring heightened scrutiny, the panel reviewed the statute under the traditional rational basis test. Utilizing the two-step test set forth in Western & Southern Life Ins. Co. v. State Board of Equalization, 451 U.S. 648, 668, 101 S.Ct. 2070, 2083, 68 L.Ed.2d 514 (1981), the appellate panel looked first to determine whether the challenged - legislation had a legitimate purpose and if so whether it was "reasonable for the lawmakers to believe that use of the challenged classification would promote that purpose". Id. The Ninth Circuit had no difficulty sustaining the statute under this lenient test. "The record clearly supports a finding that the California Legislature had a 'plausible reason' to believe that the limitations on noneconomic recovery would limit the rise in malpractice insurance costs" and thereby avert a perceived impending crisis in the delivery of adequate medical care. Hoffman, 767 F.2d at 1437. Finding such
Gower attempts to overcome the decisions in Fein and Hoffman in two respects. Initially, Gower cites this Court to decisions of other state supreme courts which have struck down similar legislation. However, the cited cases are themselves distinguishable. In Carson v. Mauer, 424 A.2d 825 (N.H. 1980), the New Hampshire Supreme Court invalidated a provision substantially similar to the California statute on equal protection grounds. However, the same court declined to similarly invalidate a statute very similar to 7 C.M.C. §2202 which limited the tort liability of governmental units to $50,000. Although concerned with the severity of the limit, the Court found that the "real and vital differences between...governmental units and ...private parties as potential tort defendants" are "sufficient to sustain the legislature's differential treatment of them." 406 A.2d 706-707, citing Cooperrider, The Court, the Legislature, and Governmental Tort Liability in Michigan, 72 Mich.L.Rev. 187, 272 (1973).
Equally of no assistance are the Ohio Supreme Court decisions in Wright v. Central DuPage Hospital, 347 N.E.2d 736 (Ill. 1976) and Simon v. St.Elizabeth Medical Center, 355 N.E.2d 903 (Ohio 1976) as they rely on independent provisions of the Illinois and Ohio state constitutions, respectively.
Secondly, Gower urges that §2202 is distinguishable from C.C.C. §3333.2 in that §2202 not only limits noneconomic
The crucial distinction here is the nature of the limitation. Were the statute at issue applicable to all tort actions against any and all defendants, private and governmental, this Court may deem it necessary to thoroughly scrutinize the limits imposed and carefully analyze their impacts upon different classes of plaintiffs. However, the limitation at issue is in essence a tort claims statute similar to those found in the majority of jurisdictions. When reviewing such a statute, the analysis differs. One starts with the proposition that the state may consent to be sued or may constitutionally withhold consent altogether. It necessarily follows that the governmental body may choose a middle path and condition the consent in a manner which it deems wise to promote sound social policy. Thus, absent is the question whether the body politic has the power at all to
The $100,000 limit passes constitutional muster. Like the Ninth Circuit panel in Hoffman, this Court will follow the rational basis test to review the statute. The limitation on damages selects no suspect class for differential treatment nor is the right to a specific measure of damages fundamental; as did the Hoffman panel, this Court finds no other factor which triggers heightened scrutiny. Accordingly, the legislation is reviewed to determine whether it has a legitimate purpose which is reasonably promoted by the chosen classification. Hoffman, 767 F.2d at 1436-1437.
The purpose of the legislation is clearly set forth in the legislative history. The legislators sought to "permit redress by private individuals for wrongful government action by granting a limited waiver of sovereign immunity." CNMI H.Rep. S.C.Rep. No.59, 3rd Leg., at 1 (Aug. 4, 1982) However, due to the "formative stage" of the government and the limited available funds, the Legislature reasonably determined that to allow for unconditional redress would risk "exorbitant expense" and consequent government instability. Accordingly, the Legislature sought to strike a compromise whereby it could offer some redress within the bounds which would "reflect!] the realities of the
II.
Gower, assuming arguendo the limit to be facially valid, challenges its constitutionality as applied to him. Specifically, he argues that the Legislature cannot make the limit applicable to cases pending at the time of the enactment.
7 C.M.C. § 2207 provides:
The provisions of the Article[including §2202] shall apply to every action for tort liability which has not been reduced to judgment as of the effective date hereof, regardless of when the action was filed.
Gower filed this action on October 4, 1982; the claim of course was yet to be reduced to judgment as of March 29, 1983, the effective date of the Article. This Court agrees with Gower that the imposition of a limitation on liability, enacted perhaps in response to a pending action and clearly made applicable to an open case, seems harsh; however, Gower.has cited no authority, nor has this Court found any case law, which prevents a government from doing just what has been done here.
Generally, legislation cannot mandate substantive results in cases pending Pefore the courts. United States v. Brainer, 515 F.Supp. 627, 631 (D.Md. 1981), citing United States v. Klein, 80 U.S. (13 Wall.) 128, 20 L.Ed. 519 (1871); see also L. Tribe, American Constitutional Law 39 (1978). However, "it has been held. that the consent of a state to be sued, being voluntary, may be withdrawn by the state whenever it sees fit, even though pending suits are thereby defeated." Oliver American Trading Co. v. Mexico, 5 F.2d 659, 662 (2nd Cir. 1924), citing Beers v. Arkansas, 20 How. 527, 15 L.Ed. 991. This statement of the principle has survived in recent cases. See, e. g, , Hospital Association of New York v. Toia, 435 F.Supp. 819, (S.D.N.Y. 1977) (state hospital which was originally required to consent to suit
Whether one relies on the principle that there exists no vested right in a remedy or cause of action or on the axiom that there are no limitations to the power to withdraw the privilege of suing the government, the conclusion reached by the vast majority.of the courts holds that legislation affecting the remedy of a pending case runs afoul of no constitutional principle. While the result here seems severe considering the amount of Gower's alleged damages, Gower has not persuaded this Court to depart from the enormous body of existing case law.
III.'
Gower raises other arguments as to why the limit should not apply to this action. Initially, he attempts to characterize this action as one sounding in contract and not in tort.
Gower's more challenging argument is that the hospital is operated in the Commonwealth's proprietary capacity and as such does not fall within the government's sovereign immunity. Gower relies on the distinction created in municipal law whereby a sovereign's, immunity has been said to extend only to those instances in which the government acts in its sovereign capacity. The corollary of this proposition is that when the government acts in a proprietary capacity, it sheds its sovereign immunity and places itself on equal footing with other persons or business enterprises. See Civil Actions Against State Government, §2.36 (Shepard's/McGraw-Hill, 1982).
The governmental/proprietary distinction is an awkward doctrine which has been extensively criticized. Justice Frankfurter, writing for the majority in Indian Towing Co. v. United States, 350 U.S. 61, 76 S.Ct. 122, 100 L.Ed. 48 (1955), addressed an attempt by the United States to use the doctrine to its advantage:
[T]he Government...would thus push the courts into the "non-governmental"-"governmental" quagmire that has long plagued the law of municipal corporations. A comparative study of the forty-eight States will disclose an*427 irreconcilable conflict. More than that, the decisions in each of the States are disharmonious and disclose the inevitable chaos when courts try to apply a rule of law that is inherently unsound.
76 S.Ct. at 124. Thus, it appears to be the modern trend to respect the legislature's authority to control the entire field. Where the legislature does act regarding the nature and bounds of its immunity, the court will not interfere; conversely, where it does not act, or acts in a piecemeal fashion, the court will develop appropriate doctrines to ensure justice. See Carroll v. Kittle, 203 Kan. 841, 457 P.2d 21, 27(Kan. 1969); see also Cabell v. California, 67 Cal.2d 150, 430 P.2d 34, 36, 60 Cal.Rptr. 476, 478 (Cal. 1976)("No sound basis exists for differentiating..., with attendant inequality, between causes arising out of so called 'proprietary' as distinguished from 'governmental' activities"). Here the Legislature has covered the entire field of tort liability and this Court will not attempt to side step the clear intent by adoption of this "inherently unsound" distinction.
IV.
In summary, the Court holds that the Commonwealth Legislature has the authority to limit its liability when it consents to be sued in tort. Although the exercise of this power must remain within the bounds of due process and equal protection, the Court finds no constitutional infirmity with 7 C.M.C. §2202. Gower's other arguments are meritless.
The Commonwealth's motion for partial summary judgment is GRANTED.
XT IS SO ORDERED.
Dec. 31, 1985
Date
&emdash; Pursuant to 7 C.M.C. §2251(b), the Commonwealth has consented to be sued in contract and has not set a limit on its liability.
Previously, the Commonwealth's liability was unlimited pursuant to 6 T.T.C. §251(c) which was made applicable to the new government pursuant to Section 505 of the Covenant.
Reference
- Full Case Name
- DAVID GOWER v. COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS
- Status
- Published