Which Laws Apply to Broker-Dealers? Federal Laws? State Laws? Both? General Principles Leading to an Answer

TAMAR FRANKEL

BU Law emerita professor Tamar Frankel explains the law of preemption as it pertains to broker-dealers and their investor clients. She predicts, among other things, that either the clients will demand that broker-dealers adhere to a fiduciary duty, or else that states will impose that duty on them.

Read More

Druding v. Care Alternatives

Court: US Court of Appeals for the Third Circuit

Docket: 18-3298

Opinion Date: March 4, 2020

Judge: Greenaway

Areas of Law: Government Contracts, Health Law, Public Benefits

Care Alternatives provides hospice care to New Jersey patients, employing “interdisciplinary teams” of registered nurses, chaplains, social workers, home health aides, and therapists working alongside independent physicians who serve as hospice medical directors. Former Alternatives employees filed suit under the False Claims Act, 31 U.S.C. 3729–3733 alleging that Alternatives admitted patients who were ineligible for hospice care and directed its employees to improperly alter those patients’ Medicare certifications to reflect eligibility. They retained an expert, who opined in his report that, based on the records of the 47 patients he examined, the patients were inappropriately certified for hospice care 35 percent of the time. Alternatives’ expert testified that a reasonable physician would have found all of those patients hospice-eligible. The district court determined that a mere difference of opinion between experts regarding the accuracy of the prognosis was insufficient to create a triable dispute of fact as to the element of falsity and required that the plaintiffs provide evidence of an objective falsehood. Upon finding they had not adduced such evidence, the court granted Alternatives summary judgment. The Third Circuit vacated, rejecting the objective falsehood requirement for FCA falsity. The plaintiffs’ expert testimony created a genuine dispute of material fact as to falsity.

Siefert v. Hamilton County

Court: US Court of Appeals for the Sixth Circuit

Docket: 18-4179

Opinion Date: March 3, 2020

Judge: Siler

Areas of Law: Civil Rights, Constitutional Law, Health Law

When the Sieferts’ child started experiencing suicidal thoughts, they took the teenager to Children’s Hospital near Cincinnati. After about a week, the Sieferts’ insurance company determined that Minor Siefert had no medical problems and denied further coverage. The Sieferts decided to bring their child home but the doctors and social workers resisted. For four weeks, the Sieferts wrangled with the hospital and county about getting their child back. Only after the Sieferts signed a voluntary safety plan did the child leave the facility. The Sieferts sued the county, its employees, the hospital, and its doctors, alleging substantive and procedural due process violations. The district court dismissed the hospital and county defendants. The Sixth Circuit reversed in part. The Sieferts adequately pled procedural due process violations “[e]ven a temporary deprivation of physical custody requires a hearing within a reasonable time.” The issue of their consent was not appropriate for summary judgment. The hospital may be considered a state actor in these circumstances. Children’s and Hamilton County worked together, collaborating and communicating about Minor Siefert’s situation. Rejecting substantive due process claims, the court stated that the defendants’ opting to err on the side of protecting the child at the expense of depriving the parents of their parental rights for a month is not conduct that shocks the conscience. The Sieferts’ claims against the county entities must fail under “Monell.”

BHC Northwest Psychiatric Hospital, LLC v. Secretary of Labor

Court: US Court of Appeals for the District of Columbia Circuit

Docket: 19-1089

Opinion Date: March 3, 2020

Judge: Cornelia Thayer Livingston Pillard

Areas of Law: Government & Administrative Law, Health Law, Labor & Employment Law

The Hospital petitioned for review of an administrative decision affirming the Secretary's citation for violating the General Duty Clause of the Occupational Safety and Health Act (OSHA) by inadequately protecting its employees from the recognized hazard of patient aggression toward staff. The DC Circuit held that, to the extent that they were preserved, the Hospital's objections failed to overcome the court's deference for the agency. In this case, substantial evidence supported the IJ's conclusion that the Hospital's incomplete and inconsistently implemented safety protocols were inadequate to materially reduce the hazard posed by patient-on-staff violence. Furthermore, the ALJ's determination that a more comprehensively considered and applied program would materially reduce the hazard was fully warranted by her legal analysis and evidentiary findings. Finally, the court held that the General Duty Clause provided fair notice in this case. Accordingly, the court dismissed in part and denied in part the petition for review.

Wolfe v. Delta Discount Drugs, Inc.

Court: Supreme Court of Mississippi

Citation: 2019-CA-00160-SCT

Opinion Date: March 5, 2020

Judge: Chamberlin

Areas of Law: Civil Procedure, Health Law, Personal Injury

In May, 2015, Spencer Wolfe was being treated for high blood pressure and was prescribed two milligrams of hydralazine two times a day. Some time between May 20, 2015, and May 27, 2015, Wolfe had this prescription filled at Delta Discount Drugs. Delta, however, allegedly mis-filled Wolfe’s prescription with twenty-five milligram tablets of hydroxyzine, rather than the prescribed two milligram tablets of hydralazine. Less than a month later, on June 19, 2015, Wolfe was hospitalized after he had blacked out while driving. The issue this case presented for the Mississippi Supreme Court's review was whether a claim asserted against a pharmacy for allegedly mis-filling a prescription was subject to the two-year professional-malpractice statute of limitations in Mississippi Code Section 15-1-36 or the three-year catch-all statute of limitations in Mississippi Code Section 15-1-49. The Circuit Court ruled that Section 15-1-36 applied to Wolfe’s claims against Delta Discount Drugs and granted Delta’s motion to dismiss with prejudice because Wolfe’s claims were filed beyond the two-year statute of limitations found in Section 15-1- 36. Aggrieved, Wolfe has timely appealed to this Court. After review, and finding no reversible error in that decision, the Supreme Court affirmed.

Willeford v. Klepper

Court: Tennessee Supreme Court

Docket: M2016-01491-SC-R11-CV

Opinion Date: February 28, 2020

Judge: Bivins

Areas of Law: Constitutional Law, Health Law, Medical Malpractice, Personal Injury

The Supreme Court vacated the qualified protective order entered by the trial court in this case, holding that Tenn. Code Ann. 29-26-121(f) is unconstitutional as enacted to the limited extent that it divests trial courts of their inherent discretion over discovery and that the statute can be elided to make it permissive and not mandatory upon trial courts. Plaintiff filed this healthcare liability wrongful death lawsuit on behalf of the decedent alleging that Defendant's negligent treatment of the decedent resulted in the decedent's death. During discovery, Defendants filed a motion for a qualified protective order pursuant to section 29-26-121(f), which allows defense counsel to conduct ex parte interviews with patients' non-party treating healthcare providers in a healthcare liability lawsuit. In response, Plaintiff argued that the statute is unconstitutional because it deprives the trial court of its inherent authority over court proceedings. The trial court entered a written qualified protective order allowing the interviews. The Supreme Court vacated the qualified protective order, holding (1) section 29-26-121(f) impermissibly intrudes on the authority of the judiciary over procedural matters; and (2) the unconstitutional portion of the statute may be elided, and the statute as elided is constitutional.