Pediatric Neurosurgery, P.C. v. Russell

Summary

The Colorado Supreme Court held that Colorado Revised Statutes section 12-36-134 creates an exception to the corporate practice of medicine doctrine for professional medical corporations. It ruled that such a corporation may be vicariously liable for the negligence of physician employees under respondeat superior, and that control is relevant only to determining whether an employment relationship exists. The court also held that the statute's insurance provisions limit shareholder liability but do not preclude liability of the corporate entity.

Holdings

1. Section 12-36-134 creates an exception to Colorado's common-law corporate practice of medicine doctrine by permitting professional medical corporations to practice medicine.
2. A professional medical corporation may be held vicariously liable under respondeat superior for negligence committed by its physician employees within the course and scope of employment.
3. When an employer's C.R.C.P. 12(b)(5) motion concedes that the alleged tortfeasor was its employee, the trial court need not inquire into the employer's right to control the employee.
4. Section 12-36-134(1)(g) addresses the circumstances under which shareholders may limit their personal joint and several liability; it does not preclude vicarious liability of the professional corporation itself.

Questions Presented

1. Whether section 12-36-134, 4 C.R.S. (2001), creates an exception to Colorado's common-law corporate practice of medicine doctrine for professional medical corporations.
2. Whether a professional medical corporation may be held vicariously liable under respondeat superior for the negligence of physician employees.
3. Whether a court must determine the corporation's right to control the physicians when the corporation's C.R.C.P. 12(b)(5) motion concedes that the physicians were employees.
4. Whether section 12-36-134(1)(g) precludes vicarious liability of the corporate entity when the statutory minimum insurance requirements are satisfied.

Disposition

reversed_and_remanded