Court Upholds Dismissal of Physician "Sham Peer Review" Lawsuit and Award of Attorney Fees to Hospital

Seattle, WA – December 29, 2009 - In trial court decisions issued in 2008, Miller Nash LLP and Greg Montgomery, an attorney in Miller Nash's health care group, obtained orders granting summary judgment to all defendants in a physician "sham peer review" lawsuit and awarding defendants substantial attorneys' fees and costs. Yesterday, the Washington Court of Appeals affirmed all aspects of the trial court decisions. In affirming the cost and fee award, the Court of Appeals decision represents the first reported appellate court decision in Washington to award costs and fees to prevailing defendants under RCW 7.71.030 of Washington's Health Care Peer Review Act.

Following decisions of the hospital Board to suspend and then terminate her privileges, the physician sued the hospital, the hospital board, eight doctors and a nurse alleging a long list of wrongs by them in the course of the review of her clinical care and conduct that ultimately resulted in the termination of her privileges. The physician sought monetary damages and mandatory injunctive relief. After extensive discovery, during which the physician took over 50 depositions and propounded hundreds of written discovery requests, the trial court granted defendants' motion for summary judgment on the damage claims based on immunity under the Health Care Quality Improvement Act of 1986. The trial court then granted defendants judgment on the claim for injunctive relief under RCW 7.71.030.

In a subsequent ruling, the trial court granted defendants' request for an award of attorneys' fees and costs. Approximately $300,000 of the costs and fees was awarded under the prevailing party provision of RCW 7.71.030. An additional amount of approximately $72,000 in costs and fees was awarded under the fee shifting provisions of the federal Health Care Quality Improvement Act of 1986.

Miller Nash LLP and Greg Montgomery served as trial counsel for all defendants and as co-counsel with Edwards, Sieh, Smith & Goodfriend, P.S. and Howard Goodfriend on the appeal.

For more information on the appellate court decision, click here.

About Miller Nash LLP

Miller Nash LLP is one of the Pacific Northwest's largest and most respected multiservice law firms, offering comprehensive, creative, and innovative services to its business clients since 1873. Miller Nash has over 120 lawyers serving clients throughout its offices in Portland, Bend, and Prineville, Ore., and Seattle and Vancouver, Wash. Miller Nash serves a wide range of leading businesses, nonprofit organizations, public entities, and individuals, and does pro bono representation. The firm's clients work in a variety of significant industries, including banking, biotech, construction, education, energy, food production, forest products, government, healthcare, intellectual property, manufacturing, real estate, securities, and technology.

Miller Nash's health law attorneys have more than seven decades of legal experience, and the specialized knowledge needed to help clients expand services, create business opportunities, engage in new ventures, comply with a variety of regulations, and assess and manage risk. The Miller Nash healthcare group provides accurate and practical advice to a wide range of healthcare organizations and providers, including air ambulance providers, ambulatory surgery centers, individual physicians, hospitals and multihospital health systems, single- and multispecialty group practices, long-term care facilities, health plans and managed care organizations, and medical technology companies.

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