Lowe v. Zarghami
Lowe v. Zarghami
Opinion of the Court
The opinion of the court was delivered by
This is a medical malpractice case which was dismissed as the result of the granting of defendant-respondent Dr. Faramarz C. Zarghami’s motion for summary judgment on the ground that he
Plaintiff was employed as a nurse at the Kennedy Memorial Hospital — Stratford Division (KMH), a non-state institution. Defendant was employed by the University of Medicine and Dentistry of New Jersey (UMDNJ), a public entity within the meaning of the Act. Fuchilla v. Layman, 109 N.J. 319, 330-31, 537 A.2d 652, cert. denied sub nom., University of Medicine and Dentistry of New Jersey v. Fuchilla, 488 U.S. 826, 109 S.Ct. 75, 102 L.Ed.2d 51 (1988). Defendant is an Associate Professor of Clinical Obstetrics and Gynecology at UMDNJ. UMDNJ pays his salary, which is not dependent upon hours billed or surgery performed. Defendant claims, and we accept, that his employment by UMDNJ is not evidenced by a formal written contract, but rather by two letters verifying his appointment as an Associate Professor. Upon being hired by UMDNJ, defendant was assigned to the south Jersey area and given staff privileges at KMH and several other hospitals. Such privileges permitted him to perform surgical procedures at those facilities. At that time, KMH had an affiliation arrangement with UMDNJ. Defendant maintained his office in a nearby building owned or leased by UMDNJ, which had an appropriate UMDNJ sign on its facade. The office was staffed by UMDNJ employees. Defendant wore an identification badge which indicated his connection with UMDNJ. Plaintiff was ree
Following the surgery, it is alleged that plaintiff developed complications which required further surgery on December 15, 1994, by another doctor at KMH. At that time, a metal clip was found on plaintiffs right ureter
In his deposition, defendant acknowledged that his activities in the operating room at KMH were not supervised by UMDNJ at all. He noted that his practice at KMH was overseen by a “quality assurance committee” composed of physicians and persons connected with KMH. KMH’s by-laws and internal procedures, and not those of UMDNJ, governed surgery performed at the hospital. During plaintiffs surgery, the attending nursing stall and anesthesiologist were assigned by KMH. The operating equipment used during plaintiffs surgery belonged to KMH. At the time of surgery, there was no representation or indication by defendant that he was acting on behalf of UMDNJ or following its surgical protocols. Defendant does not claim to have received advance approval from UMDNJ for the surgery.
It appears, and we accept as a fact, that plaintiffs medical insurer paid the fee for the surgery to UMDNJ, and the charges for plaintiffs hospitalization to KMH.
We address the issue of whether defendant was performing as an employee of UMDNJ or acting as an independent contractor at the time of the surgery.
Independent contractors are exempted from the definition of “employee” contained in N.J.S.A. 59:1-3 as follows:
“Employee” includes an officer, employee, or servant, whether or not compensated or part-time, who is authorized to perform any act or service; provided, however, that the term does not include an independent contractor.
In determining under the Act whether an employee is an independent contractor, our courts have adopted two tests defining the work relationship which must be balanced under the totality of the circumstances. See New Jersey Property-Liability Ins. Guar. Ass’n v. State, 195 N.J.Super. 4, 10, 477 A.2d 826 (App.Div.), certif. denied, 99 N.J. 188, 491 A.2d 691 (1984). The first factor which a court considers is the degree of control maintained by the employer at the time the act complained of is performed.
“Control” is recognized as the essence of a master-servant relationship. Under the “control” test, the master-servant relationship exists whenever the employer retains the right “ ‘to direct ... not only what shall be done, but how it shall be done.’ ” Id. at 8, 477 A.2d 826 (quoting Errickson v. F.W. Schwiers, Jr., Co., 108 N.J.L. 481, 483, 158 A. 482 (E. & A. 1932)). The master-
With respect to the surgery performed by defendant upon plaintiff in this case, it appears that UMDNJ did not know of the planned surgery, and there is no doubt that UMDNJ did not control what was done or how it was done, in that it did not establish, maintain, or prescribe the rules and regulations governing the locus and performance of the surgical operation. UMDNJ became aware of the surgery after the fact, for the purposes of billing. Defendant’s deposition testimony clearly indicates that he enjoyed, and was allowed by UMDNJ, complete autonomy when exercising his staff privileges at KMH. Cf. Sloan v. Luyando, 305 N.J.Super. 140, 701 A.2d 1275 (App.Div. 1997) (holding that carpenter was not an independent contractor because he had no freedom to “decide when ... or how to accomplish the assigned work, or [to] choose what jobs to accept or reject”).
We need not go beyond the “control” test and consider the “relative nature of the work” test which was formulated and adopted in Marcus v. Eastern Agricultural Ass’n, Inc., 58 N.J.Super. 584, 597, 157 A.2d 3 (App.Div. 1959) (Conford, J.A.D., dissenting, rev’d on dissent, 32 N.J. 460, 161 A.2d 247 (1960)). That test is considered when defining employer-employee relationships in the context of social legislation such as the Worker’s Compensation Law. That law is designed to broaden the measure of recourse and protection for injured employees. See Santos v. Standard Havens, Inc., 225 N.J.Super. 16, 25, 541 A.2d 708 (App.Div. 1988). To the contrary, we here deal with the New Jersey Tort Claims Act, which is designed to limit, not broaden, governmental liability and should be construed accordingly. See New Jersey Property-Liability, supra, 195 N.J.Super. at 11, 477 A.2d 826. Accordingly, the analysis here should be based on the “control” test alone. See id. at 11, 477 A.2d 826.
In Wajner, we went on to consider the “relative nature of the work” test and we added, parenthetically, that the residents would also be deemed employees under that test, because they were wholly economically dependent upon UMDNJ, and because then-work furthered UMDNJ’s legislative mandate. Id. at 120, 689 A.2d 143. In the instant matter, while we recognize that defendant was economically dependent upon UMDNJ, and that his presence at KMH furthered UMDNJ’s legislative mandate “to provide greater numbers of trained medical personnel to assist in the staffing of ... hospitals,” N.J.S.A 18A:64G-2, we must conclude, of necessity, that under the totality of the circumstances the “control” test is more directly relevant to this case than is the “relative nature of the work” test.
In sum, we conclude, limited to the facts recounted, that defendant functioned as an independent contractor when performing surgery on plaintiff. Notice of claim under the Act was not required.
The summary judgment entered February 7, 1997, dismissing plaintiffs complaint, is reversed. This matter is remanded for further proceedings in accordance with the Rules of Court.
A ureter is one of two tubes which convey urine from the kidneys to the bladder. Gould’s Medical Dictionary 1423 (5th ed. 1945).
Reference
- Full Case Name
- LINDA C. LOWE AND THOMAS LOWE v. FARAMARZ C. ZARGHAMI, M.D., DEFENDANT-RESPONDENT, AND KENNEDY MEMORIAL HOSPITAL
- Cited By
- 2 cases
- Status
- Published