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Sherr v. Healtheast Care System

Citation: 262 F. Supp. 3d 869Docket: Civil No. 16-3075 ADM/LIB

Court: District Court, D. Minnesota; June 30, 2017; Federal District Court

Narrative Opinion Summary

The case involves a dispute between Dr. Sherr, a neurosurgeon, and the HealthEast and CentraCare Defendants concerning allegations of antitrust violations and breaches of peer review confidentiality. Dr. Sherr claims that the defendants conspired to undermine his competitive position in the Minnesota neurosurgery market, leading to a summary suspension of his hospital privileges and subsequent damage to his reputation. He sought to proceed on claims including defamation and tortious interference, but the court dismissed his breach of confidentiality, invasion of privacy, and antitrust claims. The court found that Minn. Stat. 145.64 does not support a private cause of action for breach of peer review confidentiality, as it only prescribes a criminal penalty. Furthermore, Dr. Sherr's invasion of privacy claim lacked the necessary element of 'publicity,' and his antitrust claims failed due to insufficient evidence of conspiracy and failure to define a relevant geographic market. As a result, the court granted the defendants' motions for partial judgment on the pleadings, dismissing several claims with prejudice while allowing others to proceed.

Legal Issues Addressed

Breach of Peer Review Confidentiality under Minn. Stat. 145.64

Application: Dr. Sherr's claim for a breach of peer review confidentiality was dismissed as Minn. Stat. 145.64 does not provide a private cause of action.

Reasoning: The HealthEast Defendants contend that this claim should be dismissed on the grounds that Minn. Stat. 145.64 does not allow for a private cause of action.

Invasion of Privacy: Publication of Private Facts

Application: Dr. Sherr's invasion of privacy claim was dismissed for failing to meet the required standard of 'publicity' as the alleged disclosures did not reach the public at large.

Reasoning: Dr. Sherr's allegations against the HealthEast Defendants lack sufficient facts to demonstrate the required 'publicity.'

Judgment on the Pleadings under Rule 12(c)

Application: The court grants judgment on the pleadings when no material factual issues remain and the movant is entitled to judgment as a matter of law, applying the same standard as in Rule 12(b)(6) motions.

Reasoning: In considering a motion for judgment on the pleadings under Rule 12(c) of the Federal Rules of Civil Procedure, the court accepts all facts pleaded by the non-moving party as true and makes all reasonable inferences in their favor.

Relevant Geographic Market in Antitrust Claims

Application: The failure to adequately define a relevant geographic market led to the dismissal of Dr. Sherr's antitrust claims, as essential market realities were not considered.

Reasoning: The First Amended Complaint fails to adequately establish a relevant geographic market, resulting in the dismissal of Dr. Sherr's Section 1 antitrust claim under the Sherman Act.

Sherman Act, Section 1: Conspiracy and Restraint of Trade

Application: The court dismissed Dr. Sherr's antitrust claims under Section 1 of the Sherman Act due to inadequate pleading of a conspiracy and failure to define a relevant geographic market.

Reasoning: Dr. Sherr's allegations of an unreasonable restraint of trade are insufficient as he has not demonstrated actual detrimental effects on the neurosurgery market nor defined a relevant geographic market adequately.