Haar v. Nationwide Mut. Fire Ins. Co.
Opinion of the Court
This appeal requires us to decide whether Robert D. Haar ("Haar"), an orthopedic surgeon, may assert a cause of action for damages pursuant to N. Y. Pub. Health Law § 230(11)(b) against Nationwide Mutual Fire Insurance Company ("Nationwide"), which Haar alleges submitted a bad faith report about him with the New York State Office of Professional Medical Conduct ("OPMC"). The district court (Lewis A. Kaplan, Judge ) dismissed Haar's cause of action asserted under Section 230(11)(b), holding that the New York Court of Appeals, were it faced with the question, would find that the statute does not create a private right of action. Because this issue turns on a question of state law for which no controlling decisions of the New York Court of Appeals exist, and given a split in the Appellate Division, we certify this question to the Court of Appeals, pursuant to 22 N.Y.C.R.R. § 500.27 and 2d Cir. R. 27.2(a).
BACKGROUND
The following facts are taken from Haar's Verified Complaint, filed in the Supreme Court of the State of New York, County of New York, on June 7, 2017.
Nationwide submitted a complaint to the OPMC with respect to Haar's conduct for the four patients he treated in 2012.
Haar's lawsuit, alleging, inter alia , bad faith reporting in violation of
DISCUSSION
"We review the district court's interpretation of a state statute de novo ." Corsair Special Situations Fund, L.P. v. Pesiri ,
N. Y. Pub. Health Law § 230(11)(b) states that "[a]ny person, organization, institution, insurance company, osteopathic or medical society who reports or provides information to the [state board for professional misconduct] in good faith, and without malice shall not be subject to an action for civil damages or other relief as the result of such report." Section 230(11)(a) lists several entities which "shall ... report to the board any information which such person, medical society, organization institution or plan has which reasonably appears to show that a licensee is guilty of professional misconduct" as defined in earlier sections of the law. Any other person "may" make such a report.
In determining whether an implied private right of action exists under a statute, New York courts are to consider three factors: "(1) whether the plaintiff is one of the class for whose particular benefit the statute was enacted; (2) whether recognition of a private right of action would promote the legislative purpose; and (3) whether creation of such a right would be consistent with the legislative scheme." Schlessinger v. Valspar Corp. ,
*234Nationwide argues that a consideration of the three factors listed in Schlessinger indicates that Section 230(11)(b) does not create a private right of action for bad faith or malicious reporting to the state board, relying in part on an opinion from the Southern District of New York, Lesesne v. Brimecome ,
With respect to the second Schlessinger factor, "[t]he New York Court of Appeals has explained that the purpose of § 230(11)(a) was to 'encourage complaints,' primarily by medical professionals, and to address the reluctance of such individuals to provide information regarding errant doctors because of a fear of litigation."
As to the third Schlessinger factor, the district court in Lesesne found that "an implied right of action would be contrary to the legislative scheme." Id . Given that the statute provides that any reports of misconduct made to the medical board "shall remain confidential and shall not be admitted into evidence in any administrative or judicial proceeding,"
The Appellate Division, Second Department agrees that Section 230(11)(b)"does not create a private right of action." Elkoulily v. N.Y.S. Catholic Healthplan, Inc. ,
But the First Department reached the opposite result in Foong v. Empire Blue Cross & Blue Shield ,
"Although the parties did not request certification, we are empowered to seek certification nostra sponte ." Corsair ,
Our decision to certify questions to the Court of Appeals is discretionary. See Penguin Grp. (USA) Inc. v. Am. Buddha ,
CONCLUSION
For the reasons stated, the Court hereby certifies the following question to the New York Court of Appeals:
1. Does New York Public Health Law Section 230(11)(b) create a private right of action for bad faith and malicious reporting to the Office of Professional Medical Conduct?
We invite the Court of Appeals to reformulate this question as it sees fit or expand it to address any other issues of New York law that would assist this Court in determining whether Haar may assert a cause of action under Section 230(11)(b) against Nationwide.
It is hereby ORDERED that the Clerk of this Court transmit to the Clerk of the New York Court of Appeals this opinion as our certificate, together with a complete set of briefs, appendices, and the record filed in this case by the parties. The parties shall bear equally any fees and costs that may be imposed by the New York Court of Appeals in connection with this certification. This panel retains jurisdiction for purposes of resolving this appeal once the New York Court of Appeals has responded to our certification.
*236CERTIFICATE
The foregoing is hereby certified to the New York Court of Appeals pursuant to 22 N.Y.C.R.R. § 500.27(a) and 2d Cir. R. 27.2(a), as ordered by the United States Court of Appeals for the Second Circuit.
Reviewing de novo the district court's decision to grant the motion to dismiss, we view the facts-which are not of consequence here-in the light most favorable to Haar. See Brown Media Corp. v. K&L Gates, LLP ,
Haar's Verified Complaint alleged that Nationwide's report to the OPMC was submitted in 2016. Nationwide submitted a redacted version of its OPMC complaint, which it asserted could be considered at the dismissal stage because Haar "effectively" incorporated it into his complaint. The district court assumed, "without deciding, that the redacted form effectively was incorporated into the complaint." The OPMC form reflected a filing date of October 2, 2012, not 2016, as Haar alleged. The district court held that the form "would establish only what the form stated" and "could not properly be considered for the truth of the matters asserted." See Chambers v. Time Warner, Inc. ,
Unless otherwise indicated, case quotations omit all internal quotation marks, alterations, footnotes, and citations.
Lesesne addressed Foong , but found it unconvincing due to a lack of "substantial analysis of the text or purpose" of Section 230(11)(b). Lesesne ,
At oral argument before this Court, held on January 15, 2019, both parties indicated a willingness for the question of whether Section 230(11)(b) creates a private right of action to be certified to the New York Court of Appeals.
Reference
- Full Case Name
- Dr. Robert D. HAAR, M.D. v. NATIONWIDE MUTUAL FIRE INSURANCE COMPANY, John And Jane Doe Corps., 1-10, John and Jane Doe 1-10
- Cited By
- 13 cases
- Status
- Published