Case details

Doctor’s membership terminated after questioning leadership: suit

SUMMARY

$5500000

Amount

Settlement

Result type

Not present

Ruling
KEYWORDS
emotional distress, harassement
FACTS
In July 1995, plaintiff Dr. Patricia Stewart, a dermatologist and a former professional model, started a dermatology-residency training program that was affiliated with the American Association of Physician Specialists Inc., a non-profit organization that grants certifications to physicians. However, Steward claimed that shortly after she started the program, she began to be harassed by the head of the AAPS-affiliated program. She also claimed that after she complained about the harassment, AAPS refused to recognize her participation in the training program, but that after she filed a charge of discrimination with the U.S. Equal Employment Opportunity Commission, AAPS allowed her to become an AAPS member. Stewart later learned of three physicians who had their memberships suspended after allegedly raising prior complaints concerning AAPS leadership. As a result, in June 2011, Stewart also complained about AAPS leadership and objected to various members of AAPS leadership having exchanged sexual and racially insensitive emails. On June 13, 2012, AAPS terminated Stewart’s membership. Stewart sued American Association of Physician Specialists Inc.; its former president, Robert Cerrato; the chief executive officer, William Carbone; and other AAPS leadership, including Anthony Durante, Douglas Marciniack, Anthony Russo, Stephen Montes, Joseph Gallagher, Brian Feaver, Ken Wallace, William Anderson, Thomas Balshi, Susan Slominski, Svetlana Rubakovic, Lori Honeycutt, Robert Ilowite, and Bart Maggio. Steward alleged that the defendants’ actions constituted a breach of contract, violations of Title VII of Civil Rights Act of 1964, violations of the Unruh Civil Rights Act, violations of California Government Code § 12940(h), intentional misrepresentation and false promise, defamation, an intentional interference with prospective economic advantage, and unfair business practices in violation of California Business and Professions Code § 17200. Prior to trial, Stephen Montes passed away. As a result, Michael A. Montes, acting as Trustee for the estate of deceased party Stephen Montes, was substituted into the case. However, the estate of Stephen Montes and several other defendants were dismissed from the case, either voluntarily or by court order, as a result, the matter continued to trial against only AAPS, Cerrato, and Carbone. During trial, and pursuant to plaintiff’s counsel’s motions, the court reconsidered its ruling regarding Stewart’s defamation claim and allowed the plaintiff to present claims for common law right to a fair procedure and intentional infliction of emotional distress. Stewart denied that she had engaged in any conduct that merited her termination from the organization, and she took strong issue with the procedures that AAPS employed in the disciplinary process. She claimed that in early 2010, AAPS’ former director of governmental affairs told the organization’s board that Carbone had exchanged inappropriate emails with high-ranking officers, past presidents, and employees of the organization. The emails involving Carbone’s AAPS email address allegedly contained photos and videos of nude women, a video of group sex, and other controversial content. Stewart further claimed that AAPS filed a meritless defamation suit against her and another physician in Florida. She also claimed that Cerrato and others sent emails falsely accusing her of campaigning to destroy the group and that Cerrato and members of AAPS’ disciplinary committee used those emails as a pretext to remove Stewart from her elected position as AAPS governor in March 2012. In addition, Stewart accused Cerrato of blocking her from attending the organization’s annual meeting in June 2012. She claimed that during a PowerPoint presentation at that meeting, Cerrato and Carbone accused her of authoring a subversive Internet blog. Defense counsel contended that AAPS complied with the organization’s bylaws in its termination of Stewart’s membership by giving her proper notice and conducting the hearing in a fair manner., Stewart sought recovery of damages as a result of being removed from the organization, which caused her to lose certification and her ability to practice medicine. She sought recovery of damages for her emotional distress and continuing anxiety about the incidents. She also sought an injunctive relief and damages pursuant to Title VII of the Civil Rights Act of 1964. In addition, Stewart sought recovery of $6,901,735 in past and future lost earnings, and an unspecified amount of non-economic damages for her stress, anxiety, embarrassment, humiliation, and damage to reputation.
COURT
United States District Court, Central District, Riverside, CA

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