Title
Professional Services, Inc. vs. Court of Appeals
Case
G.R. No. 126297
Decision Date
Feb 11, 2008
Patient suffered post-surgery complications due to retained gauze, leading to severe infection. Hospital and surgeon held jointly liable for negligence, corporate oversight failure, and ostensible agency.

Case Summary (G.R. No. 224302)

Summary of Facts

On April 4, 1984, Natividad Agana was admitted to Medical City with serious health complaints, which led to a surgery performed by Dr. Ampil, assisted by the hospital staff. During the procedure, complications arose, including the erroneous retention of surgical gauze, which later resulted in severe infections and necessitated additional surgeries. Natividad filed a complaint against PSI, Dr. Ampil, and Dr. Fuentes, alleging medical malpractice following her difficulties after the initial surgery.

Procedural History

Following Natividad's death in 1986, her children legally substituted her in the lawsuit against PSI and the medical practitioners. The Regional Trial Court ruled in favor of the Aganas, finding all parties liable for medical negligence. The Court of Appeals later affirmed this ruling with modifications, specifically dismissing the complaint against Dr. Fuentes, which led to appeals to the Supreme Court.

Legal Framework

The court’s decision was based primarily on Article 2180 of the Civil Code, which delineates the liability of employers for the negligent acts of their employees. Additionally, the court contemplated the doctrines of ostensible agency and corporate negligence, adjusting the traditional views that shield hospitals from liability based on employee status.

Court’s Findings on Employer-Employee Relationship

The Supreme Court upheld that an employer-employee relationship existed between PSI and Dr. Ampil for the purpose of liability allocation in medical negligence cases. It acknowledged that hospitals exert considerable control over physicians operating in their premises, even when such physicians are not formal employees. This control is relevant in determining the existence of liability.

Doctrine of Ostensible Agency

The court examined the implications of ostensible agency. PSI displayed the names and specializations of its consultants publicly, leading to the perception that Dr. Ampil was an employee of the hospital. Attorney Agana's testimony reinforced this notion as he believed Dr. Ampil was a staff member of Medical City, significantly influencing his choice to seek treatment from him.

Corporate Negligence Doctrine

The court further articulated that hospitals have a duty not only to provide safe facilities but to monitor and supervise the actions of all med

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