Gianetti v. Norwalk Hospital

Facts

Dr. Charles Gianetti, a plastic surgeon, was granted provisional clinical privileges at Norwalk Hospital in 1974, which were upgraded to full clinical privileges in 1976. His privileges were renewed annually through 1983. During this period, he also maintained privileges at several other area hospitals in Bridgeport. In 1983, there were four plastic surgeons, including Gianetti, who provided on-call coverage for Norwalk Hospital’s emergency department. These surgeons were not required to remain at the hospital while on call but were summoned as needed and billed patients directly for their services.

When Gianetti applied for renewal of privileges for 1984, the hospital declined to renew them based on recommendations from various hospital committees. The hospital’s board of trustees ratified this decision. In 1983, Gianetti earned $43,687 from services at Norwalk Hospital and $172,890 from services elsewhere, for a total of $216,577. In 1984, after his privileges were terminated, he earned $225,815, all from services performed at other hospitals.

Gianetti filed suit against the hospital in January 1984. An attorney trial referee concluded that an enforceable contract existed between the parties and that the hospital had breached it by failing to follow the procedural requirements in its bylaws. The trial court accepted this report and found for Gianetti on liability but awarded only $1 in nominal damages, reasoning that he was not a lost volume seller and had mitigated his damages. After multiple appeals, the case was remanded to determine whether Gianetti was a lost volume seller and, if so, what damages he was entitled to.

On remand, the trial court found that Gianetti was a lost volume seller because he had demonstrated the capacity to work at multiple hospitals simultaneously, it would have been profitable for him to do so, and he would have continued working at all hospitals even without the breach. The court awarded him damages of $258,610 for lost profits from 1984 through 1988, finding that damages beyond 1988 could not be calculated with reasonable certainty due to various variables affecting the plastic surgery market.