Shannon Medical Center v. Michael Sickels and James Christopher Cole
CourtTexas Court of Appeals, 15th District
Date FiledAugust 25, 2026
Docket15-25-00167-CV
StatusPublished
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Full Opinion
Reverse and Render and Memorandum Opinion filed August 25, 2026
In The
Fifteenth Court of Appeals
NO. 15-25-00167-CV
SHANNON MEDICAL CENTER, Appellant
V.
MICHAEL SICKELS AND JAMES CHRISTOPHER COLE, Appellees
On Appeal from the 51st District Court
Tom Green County, Texas
Trial Court Cause No. A250014C
MEMORANDUM OPINION
Appellees Dr. Michael Sickels and Dr. James Christopher Cole are
radiologists who worked at appellant Shannon Medical Center (âShannonâ), a
hospital. Sickels and Cole (âRadiologistsâ) sued Shannon, alleging Shannon
negligently exposed them to radiation while they worked there. Shannon filed a
motion to dismiss, arguing that Radiologistsâ claims were health care liability claims
(âHCLCsâ) and should be dismissed because Radiologists failed to file the requisite
expert report within 120 days of Shannonâs answer. The trial court denied the motion
and Shannon filed this interlocutory appeal. Because we conclude that Radiologistsâ
claims are HCLCs, we reverse and render.
BACKGROUND
Dr. Michael Sickels and Dr. James Christopher Cole worked at Shannon
Medical Center as radiologists for two decades. Both received skin cancer diagnoses
and had to undergo multiple invasive surgical procedures to treat the cancer.
Radiologists then sued Shannon, asserting claims of negligence, negligence
per se, and gross negligence. They argued that Shannon breached its common law
duty of care to Radiologists by failing to properly monitor, warn, report, control, and
restrict Radiologists from excessive radiation exposure, and by failing to maintain
proper procedures for performing these duties. Radiologists also asserted breaches
of Shannonâs common law duty to provide Radiologists with proper radiation
monitoring devices to measure the levels of radiation exposure in Radiologistsâ
hands and to provide Radiologists with appropriate and suitable protective
equipment and clothing. Radiologists further pleaded that Shannon breached its
statutory duty of care by failing to maintain proper procedures regarding radiation
exposure to Radiologists in accordance with Chapter 401 of the Texas Health and
Safety Code (âChapter 401â) and Title 25, Chapter 289 of the Texas Administrative
Code (âChapter 289â), the regulations promulgated to implement Chapter 401. 25
Tex. Admin. Code §§ 289.101â.102. Radiologists pleaded that these failures
resulted in Radiologistsâ skin cancer diagnoses.
Shannon filed an answer and then, over 120 days later, filed a motion seeking
to dismiss Radiologistsâ claims because the claims were HCLCs subject to the Texas
Medical Liability Act, and Radiologists failed to file the required expert report
within 120 days of Shannonâs answer. Following a hearing, the trial court denied
Shannonâs motion. Shannon then filed this interlocutory appeal.
2
STANDARD OF REVIEW
The Texas Medical Liability Act requires HCLC claimants1 to serve the
defendant an expert report âdescribing the applicable standards of care, how the
defendantâs conduct failed to meet those standards, and how those failures caused
the claimant harm . . . within 120 days after the defendant files its original answer
. . . .â Collin Creek Assisted Living Ctr., Inc. v. Faber, 671 S.W.3d 879, 885 (Tex.
2023). If a claimant fails to serve such a report, âthe trial court must dismiss the
claim with prejudice and award the defendant attorneyâs fees and costs.â Id.
The primary dispute between the parties is whether the Radiologistsâ claims
are HCLCs. An HCLC is defined as
a cause of action against a health care provider or physician for
treatment, lack of treatment, or other claimed departure from accepted
standards of medical care, or health care, or safety or professional or
administrative services directly related to health care, which
proximately results in injury to or death of a claimant, whether the
claimantâs claim or cause of action sounds in tort or contract. The term
does not include a cause of action described by Section 406.033(a) or
408.001(b), Labor Code, against an employer by an employee or the
employeeâs surviving spouse or heir.
Tex. Civ. Prac. & Rem. Code § 74.001(a)(13).
The Texas Supreme Court has recognized that this definition includes three
essential elements: (1) the defendant is a physician or health care provider; (2) the
claim is for treatment, lack of treatment, or another departure from accepted
standards of medical care, health care, or safety or professional or administrative
services directly related to health care; and (3) the defendantâs act or omission
proximately caused the claimantâs injury or death. Faber, 671 S.W.3d at 886. The
1
A âclaimantâ is a âperson . . . seeking or who has sought recovery of damages in a health
care liability claim.â Tex. Civ. Prac. & Rem. Code § 74.001(a)(2).
3
parties do not dispute the first and third elements in this appeal. Only the second is
at issueâwhether Radiologistsâ claims allege a departure from safety standards
related to health care.
We review whether a claimant asserted an HCLC de novo, Faber, 671 S.W.3d
at 885, but we review motions to dismiss targeting the adequacy of an expert report
for abuse of discretion, Baty v. Futrell, 543 S.W.3d 689, 693 & n.4 (Tex. 2018).2
Whether a claim is an HCLC âturns on the claimâs âunderlying nature . . . rather than
its label.ââ Faber, 671 S.W.3d at 885 (quoting Baylor Scott & White, Hillcrest Med.
Ctr. v. Weems, 575 S.W.3d 357, 363 (Tex. 2019)). Courts âmust focus on the set of
operative facts âunderlying the claimâ that are relevant to the alleged injury, not on
how âthe plaintiffâs pleadings describ[e] the facts or legal theories asserted.ââ Id.
(alteration in original) (quoting Loaisiga v. Cerda, 379 S.W.3d 248, 255 (Tex.
2012)). In appraising these operative facts, courts must not just look at the pleadings
but the entire record, âincluding âpleadings, motions and responses, and relevant
evidence properly admitted.ââ Id. at 886 (quoting Loaisiga, 379 S.W.3d at 258).
ANALYSIS
Shannon challenges the trial courtâs order denying their motion to dismiss,
arguing that the (1) Radiologistsâ claims are HCLCs; (2) the carve out to HCLCs for
employee actions against employers does not apply here; and (3) the required expert
report was not filed. We address these issues in turn. 3
2
Radiologists contend that courts must analyze the applicability of the HCLC carve out
provision for claims by employees against employers under an abuse of discretion standard.
Whether the carve out provision applies necessarily implicates whether the claims at issue are
HCLCs, which makes review of the carve out provisionâs applicability de novo. Radiologists cite
Eden II Enterprises, LLC v. Charlton to support their position, but that case addressed the adequacy
of an expert report, not whether an HCLC was asserted. No. 02-24-00079-CV, 2024 WL 2971692,
at *3 (Tex. App.âFort Worth June 13, 2024, no pet.) (mem. op.).
3
Radiologists throughout argue that Shannon failed to preserve certain arguments on
4
I. Radiologistsâ Claims are HCLCs.
In their first issue, Shannon argues that Radiologistsâ claims meet all three
elements to be HCLCs. Namely, the claims are against a health care provider,
Shannon; the claims allege departures from safety standards that have a substantive
nexus to the provision of health care; and Shannonâs departures from safety
standards proximately caused their injuries. Shannon also contends there is a
rebuttable presumption that Radiologistsâ claims are HCLCs.
Radiologists do not dispute that Shannon is a health care provider and that
Shannonâs alleged departures from safety standards proximately caused
Radiologistsâ injuries, but they contest that Shannonâs violation of safety standards
has a substantial nexus with the provision of health care. Radiologists also contest
that there is a rebuttable presumption that their claims are HCLCs. We agree with
Shannon that there is a rebuttable presumption that Radiologistsâ claims are HCLCs
and that Radiologists have not overcome that presumption.
A. There Is a Rebuttable Presumption that Radiologistsâ Claims are
HCLCs.
We first determine whether there is a rebuttable presumption that
Radiologistsâ claims are HCLCs. âWhen a claim brought against a health care
provider is âbased on facts implicating the defendantâs conduct during the course of
a patientâs care, treatment, or confinement,â a rebuttable presumption arises that it is
a health care liability claim for purposes of the Medical Liability Act.â Weems, 575
appeal regarding the first two issues because they were not initially raised before the trial court.
âBut our preservation rules recognize that parties may waive issues, not arguments, by failing to
raise them.â Montelongo v. Abrea, 622 S.W.3d 290, 298 n.10 (Tex. 2021). Shannon raised the
issue of whether Radiologistsâ claims were HCLCs in its motion to dismiss before the trial court.
Because the issue of whether the HCLC employee-claim carve out provision applies implicates
whether a claim is an HCLC, that issue too was raised before the trial court. Shannon further
addressed this issue in its reply brief when it responded to Radiologistsâ arguments that the carve
out applied. Accordingly, none of Shannonâs arguments as to these issues are waived.
5
S.W.3d at 363 (quoting Loaisiga, 379 S.W.3d at 256).
Here, Radiologistsâ allegations taken together establish that Shannonâs
violations of radiation safety standards implicate Shannonâs conduct during the
course of patientsâ care and treatment. Radiologists pleaded that they were injured
by radiation exposure âthrough the machines used in the performance of their dutiesâ
at Shannon and concede in their briefing throughout this litigation that their injuries
occurred by providing or assisting with the provision of health care to patients.
Radiologists also acknowledge in their response to Shannonâs motion to dismiss in
the trial court that âa good deal of the exposure to ionizing radiation Plaintiffs
experienced did occur in areas where patients were present . . . .â
Taking these statements together, the gravamen of Radiologistsâ claims is that
due to Shannonâs negligence in failing to properly abide by radiation safety
standards, Radiologists were exposed to excessive radiation while providing health
care to patients present in the room. These facts, taken as true, implicate Shannonâs
conduct during the course of Radiologistsâ care of patients. Radiologists were not
recipients of any health care, but â[t]he [Medical Liability] Act does not limit its
reach to persons receiving or having received health or medical careâit applies to
âclaimants.ââ CHRISTUS Health Gulf Coast v. Carswell, 505 S.W.3d 528, 537 (Tex.
2016) (quoting Tex. Civ. Prac. & Rem. Code § 74.001(a)(13)). Accordingly,
Radiologists bear the burden to show that their claims are not HCLCs.
Radiologists object that this rebuttable presumption only applies when a
patient sues a health care provider. Radiologists point to language in Loaisiga v.
Cerda, which held that âthe TMLA creates a rebuttable presumption that a patientâs
claimsâ against a âhealth care provider based on facts implicating the defendantâs
conduct during the patientâs care, treatment, or confinement are HCLCs.â 379
S.W.3d at 252 (emphasis added). Notwithstanding such wording in Loaisiga, the
6
Court applied the presumption in a later case, Baylor Scott & White, Hillcrest
Medical Center. v. Weems, which did not involve a patient claimant. 575 S.W.3d at
363. The claimant in Weems was someone indicted for aggravated assault who sued
a hospital for intentional infliction of emotional distress, alleging he was only
indicted because the nurse who examined the person he assaulted fraudulently
described that personâs injuries as being more severe than they in fact were. Id. at
361. The Court held that the claimantâs âpleadings invoke the presumptionâ and so
he âb[ore] the burden of rebutting the presumption that his claim is a health care
liability claim.â Id. at 363.
B. A Substantive Nexus Exists Between Shannonâs Alleged Safety
Standard Violations and the Provision of Health Care.
Shannon argues that Radiologistsâ claims fall under a subcategory of HCLCs
called âsafetyâ HCLCs, which concern a health care providerâs âdepartures from
safety standards . . . .â Faber, 671 S.W.3d at 887. âThe pivotal issue in a safety
standards-based claim is whether the standards on which the claim is based implicate
the defendantâs duties as a health care provider, including its duties to provide for
patient safety.â Ross v. St. Lukeâs Episcopal Hosp., 462 S.W.3d 496, 505 (Tex.
2015). In making this determination, courts must determine whether there is âa
substantive nexus between the safety standards allegedly violated and the provision
of health care.â Id. at 504. Courts utilize a seven-factor non-exclusive test, the Ross
factors, âto assess whether a substantive nexus exists.â Faber, 671 S.W.3d at 888.
These factors are:
1. Did the alleged negligence of the defendant occur in the course of
the defendantâs performing tasks with the purpose of protecting patients
from harm;
2. Did the injuries occur in a place where patients might be during the
time they were receiving care, so that the obligation of the provider to
protect persons who require special, medical care was implicated;
7
3. At the time of the injury was the claimant in the process of seeking
or receiving health care;
4. At the time of the injury was the claimant providing or assisting in
providing health care;
5. Is the alleged negligence based on safety standards arising from
professional duties owed by the health care provider;
6. If an instrumentality was involved in the defendantâs alleged
negligence, was it a type used in providing health care; [and]
7. Did the alleged negligence occur in the course of the defendantâs
taking action or failing to take action necessary to comply with safety-
related requirements set for health care providers by governmental or
accrediting agencies?
Id. (alteration in original) (quoting Ross, 462 S.W.3d at 505). We hold that, on
balance, Shannon prevails on the Ross factors.
The first factor favors Shannon. Shannonâs alleged negligence occurred in the
course of its performingâor failing to perform in this instanceâtasks with the
purpose of protecting patients from harm. Shannonâs failure to monitor, control, and
restrict radiation exposure to Radiologists is a concern that applies to both physicians
and patients in this instance. This is so because Radiologists, by their own
allegations, were providing health care to patients using radiation equipment while
the patients were in the room. Radiologistsâ response to Shannonâs motion to dismiss
asserts that âa good deal of the exposure to ionizing radiation Plaintiffs experienced
did occur in areas where patients were present . . . .â
Radiologists contend that the presence of patients in such areas did not trigger
a duty of care by Shannon to such patients, but such a position is incongruous with
the law. âThe standard of care for a hospital is what an ordinarily prudent hospital
would do under the same or similar circumstances.â Am. Transitional Care Ctrs. of
Tex., Inc. v. Palacios, 46 S.W.3d 873, 880 (Tex. 2001). Shannon has a duty of care
as a hospital to patients to keep its premises in a reasonably safe condition. Charrin
8
v. Methodist Hosp., 432 S.W.2d 572, 574â75 (Tex. App.âHouston [1st Dist.] 1968,
no writ) (âA patient accepted by a hospital enjoys the status of an invitee or business
visitor entitled to the exercise of ordinary care by the hospital to keep its premises
in reasonably safe condition for the expected use. Thus, the hospital as occupier of
the premises has a duty to keep them in a reasonably safe condition for its invitees,
to warn or protect its invitees from any dangers of which it knows or should know
in the exercise of ordinary care.â (citation omitted)); Mills v. Angel, 995 S.W.2d 262,
267 (Tex. App.âTexarkana 1999, no pet.) (stating a hospital owes a patient âa duty
to keep its premises in a reasonably safe conditionâ). Maintaining radiation standards
for equipment used to treat patients while the patients are in the room falls under that
duty.
Radiologists dispute that this factor favors treating their claim as an HCLC.
They argue that their pleadings only allege the violation of general occupational
safety standards that make no reference to patients or standards protecting patients.
Radiologists further contend that Shannon cites no evidence that the violations of
such standards involved protecting patients. But when assessing whether claims are
HCLCs, we focus on âthe set of operative facts âunderlying the claimâ that are
relevant to the alleged injuryâ and ânot on how âthe plaintiffâs pleadings describ[e]
the facts or legal theories asserted.ââ Faber, 671 S.W.3d at 885 (alteration in
original) (quoting Loaisiga, 379 S.W.3d at 255). In making this assessment, we look
at not just the pleadings but the entire record, âincluding âpleadings, motions and
responses, and relevant evidence properly admitted.ââ Id. at 886 (quoting Loaisiga,
379 S.W.3d at 258). It is true that Radiologistsâ pleadings do not mention the word
âpatient,â but the underlying operative facts in Radiologistsâ pleadings, motion to
dismiss response, and other briefing are sufficient on their own to show that the
alleged negligence occurred in the course of Shannonâs failing to perform tasks
9
pertaining to its duty to protect patients from harm. Radiologists allege they were
providing health care to patients using Shannonâs defective radiation equipment,
which caused Radiologistsâ injuries, while the patients were in the room. No
evidence is needed to show factor one is met when these allegations are sufficient
on their own.
The second factor also favors Shannon. The facts pleaded by Radiologists
confirm that their injuries due to radiation exposure occurred while providing health
care to patients, who were present in the room. Given that the injuries occurred while
health care was being provided to patients, Shannonâs duty to ensure a reasonably
safe premises for patients was triggered. See Mills, 995 S.W.2d at 267. Radiologists
argue that they never alleged that patients themselves were exposed to excess
radiation, but such an admission is unnecessary to meet the second factor. This factor
only requires that the âinjuries occur in a place where patients might be during the
time they were receiving care,â which Radiologistsâ own allegations aver. Ross, 462
S.W.3d at 505; Faber, 671 S.W.3d at 888.
Turning to factors three and four, it is undisputed that Radiologists were not
seeking or receiving health care but were instead providing it. The Texas Supreme
Court has stated that â[i]n a particular case, the claimant will usually be seeking or
receiving health care, or providing or assisting in providing health care, but not bothâ
and that, consequently, âif either factor supports the conclusion that a claim is a
health care liability claim, evaluation of the other factor is unnecessary.â Faber, 671
S.W.3d at 892 n.15. Accordingly, the third factor âis inapplicable.â See id. at 892.
The fifth factor favors Radiologists. This factor asks whether Shannon
violated safety standards arising specifically from its âdistinctâ duty as a health care
provider, as opposed to a duty âgenerally owedâ by any kind of entity. See id. at 893
(âHere, the relevant question is whether DaySpringâas a health care facility
10
charged with caring for Smithâs physical healthâviolated a duty distinct from one
generally owed by businesses to all invitees.â); Galvan v. Memâl Hermann Hosp.
Sys., 476 S.W.3d 429, 432 (Tex. 2015) (per curiam) (stating â[h]ospital standards
for floor maintenance âmay also be the same standards many businesses generally
haveââ and did not implicate the hospitalâs duty as a healthcare provider (quoting
Ross, 462 S.W.3d at 503)).
Here, Radiologists pleaded common-law as well as regulatory and statutory
bases for the violation of radiation safety standards. Shannon does not argue, and the
record does not reflect, that the common-law grounds 4 are distinctive to health care
providers as opposed to being generally applicable to any entity handling radiation-
emitting equipment. Indeed, such safety standards seem more akin to the hospital
standards for floor maintenance in Galvan, which applied to businesses generally.
Galvan, 476 S.W.3d at 432. This assessment is buttressed by the radiation standards
promulgated in the Chapter 289 regulations, which apply not only to machines used
in the âhealing artsâ but also to, among other industries, veterinary medicine,
dentistry, industrial radiation, industrial radiography, and oil and gas well logging.
25 Tex. Admin. Code §§ 289.226â228, .232â.233, .252â.253, .255â.256. Chapter
289 in fact goes further than merely expounding on general radiation safety
standards; it expressly excludes patient exposure from their scope. Id.
§ 289.202(b)(1) (â[D]ose limits in this section do not apply to doses due . . . to
exposure of patients to radiation for the purpose of medical diagnosis or therapyâ
(emphasis added)).
4
As stated earlier, these grounds are Shannonâs failure to properly monitor, warn, report,
control, and restrict Radiologists from excessive radiation exposure, and failing to maintain proper
procedures to that effect. Other grounds include failure to provide Radiologists with proper
radiation monitoring devices to measure the levels of radiation exposure in Radiologistsâ hands
and to provide Radiologists with appropriate and suitable protective equipment and clothing.
11
The sixth factor favors Shannon. The record indicates that the instrumentality
involved in Shannonâs alleged negligence was the type used in providing health care.
Radiologists argue that Shannon has not offered evidence as to what specific
machine caused Radiologistsâ injuries, but Shannon did not need to do so.
Radiologists plead that they were âexposed to ionizing radiation through the
machines used in the performance of their dutiesâ and were injured due to such
exposure. (emphasis added). Radiologists conceded per factor four that their injuries
were incurred while providing health care to patients and that Radiologists were
exposed to the radiation while patients were present. These allegations and
concessions taken together are sufficient to show that Radiologists were using the
machines for the purposes of providing health care to patients, making the machines
the type used in providing health care.
To support their argument that Shannon must identify what machine caused
their injuries, Radiologists cite a Fourteenth Court of Appeals opinion stating that
â[w]ithout more than a tentative identification regarding the type of machine that
allegedly caused [claimantâs] injuries,â the Court could not determine whether the
radiation-emitting machine was governed by standards specific to healthcare
providers or standards generally applicable to any person possessing such a machine.
Harris Cnty. Hosp. Dist. v. McNew, No. 14-18-00868-CV, 2020 WL 950089, at *4
(Tex. App.âHouston [14th Dist.] Feb. 27, 2020, no pet.) (mem. op.). But the
circumstances in this case are different from McNew. McNew involved a clerical
employee, the claimant, working in an administrative office in a hospital who
asserted a radiation-emitting device in an adjacent room caused her breast cancer.
Id. at *1. In applying the Ross factors, the Court concluded the sixth factor was
indeterminate because the evidence and briefing were ultimately unclear as to
whether the machine was used for health care, research, or some other purpose. Id.
12
at *4. Unlike in McNew, Radiologistsâ own allegations make clear that radiation-
producing machines were used to provide health care, thereby invoking Shannonâs
duties as a health care provider and any standards that would apply to such health
care providing machines. Moreover, in this case, there is a rebuttable presumption
that Radiologistsâ claims are HCLCs because Radiologistsâ claims are âbased on
facts implicating [Shannonâs] conduct during any care,â which was not the case in
McNew. Id. at *5. Radiologists therefore had the burden to show the
instrumentalities at issue were not used to provide health care, which they did not
meet.
Radiologists also contend that this factor does not favor Shannon because
Radiologists allege Shannon was negligent for failing to install radiation monitoring
devices and Shannon failed to provide evidence identifying these instrumentalities.
But Shannonâs failure to monitor the radiation-emitting machines, not the devices
monitoring such radiation, is the basis of Radiologistsâ injuries that form the basis
of their claims. The monitoring devices are not themselves instrumentalities used to
provide health care but are rather tools to ensure such instrumentalitiesâthe
radiation-emitting machinesâare safe.
The seventh factor favors Radiologists. The regulations in Chapter 289,
enacted to implement Chapter 401 of the Texas Health and Safety Code, provide the
safety-related requirements set by governmental agenciesâhere the Department of
State Health Services in conjunction with the Texas Commission on Environmental
Quality and the Railroad Commission of Texas. 25 Tex. Admin. Code § 289.101â
102 (memoranda stating their purpose is to coordinate the regulation of radiation
sources between these three entities). Radiologists prevail on this factor for the same
reasons they prevail on factor five. The safety standards under Chapter 289 as
discussed above regulate radiation machines used in the healing arts and other
13
industries but do not regulate exposure as to patients and so are not health care
specific. See Faber, 671 S.W.3d at 894 (holding that the seventh factor favored
health care facility because the regulation at issue was health care specific and âthere
is no indication . . .that DaySpringâs decisions regarding maintenance of its sidewalk
would have been motivated by a different, non-healthcare-specific safety
standard.â). Here, the regulations in Chapter 289 embody the âdifferent, non-
healthcare-specific safety standard[s]â possibly motivating Shannonâs decisions
regarding the safety of the radiation machines at issue. Id.
Turning to the balance, Shannon prevails on four of the factors, Radiologists
prevail on two, and factor three is inapplicable. The above factors are non-exclusive,
but they on balance support the conclusion that âa substantive nexusâ exists between
the Shannonâs alleged violation of radiation safety standards and the provision of
health care, implicating Shannonâs duties as a health care provider and so making
them HCLCs. Ross, 462 S.W.3d at 504â505.5 Radiologists did not meet their burden
to overcome the presumption that their claims are HCLCs.
II. Radiologists Failed to Establish They Were Employees of Shannon.
In their second issue, Shannon argues that the exemption to HCLCs under the
Texas Medical Liability Act for employee claims against employers does not apply
here. Shannon contends Radiologists were employees of Shannon Clinic, a separate
entity from Shannon and that Radiologistsâ relationship with Shannon did not rise to
the level of employment. Radiologists respond that as a threshold matter Shannon
has the burden to prove that Radiologists claims are not HCLCs because
Radiologistsâ allegations do not implicate misconduct during a patientâs care. That
5
As Shannon prevailing on these factors is sufficient to show a substantive nexus exists,
we do not address Shannonâs argument that an independent factor, the need for expert medical or
health care testimony to prove the merits of Radiologistsâ claims, supports Radiologistsâ claims
being HCLCs.
14
burden includes demonstrating that the HCLC exemption on employee claims
against employers does not apply. Radiologists also respond that, notwithstanding
this fact, the record demonstrates that Radiologists were employed by Shannon. We
hold that Radiologists had the burden to prove they were employed at Shannon,
which they failed to do.
As stated in the definition of HCLC, â[t]he term does not include a cause of
action described by Section 406.033(a) or 408.001(b), Labor Code, against an
employer by an employee or the employeeâs surviving spouse or heir.â Tex. Civ.
Prac. & Rem. Code § 74.001(a)(13). Section 406.033(a) describes causes of action
brought by employees seeking to recover damages for personal injuries incurred in
the scope of employment against employers who have not subscribed to workersâ
compensation insurance. Tex. Lab. Code § 406.033(a). It is undisputed that Shannon
is not subscribed to workersâ compensation insurance and that Radiologists are
seeking damages for personal injuries from Shannon. The partiesâ dispute concerns
whether Radiologists are employees of Shannon.
âEmployeeâ under Section 406.033 is defined to mean âeach person in the
service of another under a contract of hire, whether express or implied, or oral or
written,â Texas Labor Code § 401.012(a), while âemployerâ means âa person who
makes a contract of hireâ and âemploys one or more employees,â6 id. § 401.011(18).
But â[a]lthough determining whether a plaintiff is the defendantâs employee is
ultimately a matter of applying these statutory definitions, courts have not often
found the definitions alone to be dispositive.â Waste Mgmt. of Tex., Inc. v. Stevenson,
6
The definition of âemployerâ also states the person âhas workersâ compensation insurance
coverageâ unless otherwise specified. Tex. Labor Code § 401.011(18). Because Section 406.033
contemplates suits by employees against employers not subscribed to workersâ compensation
insurance in certain circumstances, it is an instance where being an âemployerâ does not require
having workersâ compensation insurance.
15
622 S.W.3d 273, 277 (Tex. 2021).
Both parties again agree that the determination of whether Radiologists are
employees comes down to whether Shannon exercised the right of control over
Radiologistsâ work at Shannon, but they disagree as to how to determine whether
there is such a right of control. Radiologists cite Waste Management of Texas, Inc.
v. Stevenson as setting the standard while Shannon cites to Limestone Products
Distribution, Inc. v. McNamara, 71 S.W.3d 308 (Tex. 2002) (per curiam).
The Texas Supreme Court in both cases stated that â[t]he test to determine
whether a worker is an employee rather than an independent contractor is whether
the employer has the right to control the progress, details, and methods of operations
of the work.â Stevenson, 622 S.W.3d at 277 (alteration in original) (quoting
Limestone, 71 S.W.3d at 312). The Court in Stevenson on this question stated that
whether a worker is in the service of a putative employer âhas always depended on
the extent to which the partiesâ conduct at the jobsite demonstrated the clientâs right
to control the plaintiffâs daily work.â Id. at 279. Limestone utilizes a five-factor test
to determine whether a right of control exists, which is not present in Stevenson:
We measure the right to control by considering: (1) the independent
nature of the workerâs business; (2) the worker's obligation to furnish
necessary tools, supplies, and materials to perform the job; (3) the
workerâs right to control the progress of the work except about final
results; (4) the time for which the worker is employed; and (5) the
method of payment, whether by unit of time or by the job.
Limestone, 71 S.W.3d at 312. Radiologists argue Limestoneâs standard is
inapplicable because it only applies in the vicarious liability context while Shannon
argues Stevensonâs standard is inapplicable because it only applies where the
purported employer is subscribed to workerâs compensation insurance. We need not
determine which of these standards applyâor whether they even conflictâbecause
16
under either standard Radiologists are not employees of Shannon.
We note at the outset that, as established in Part I.A., the law supplies a
rebuttable presumption that Radiologistsâ claims are HCLCs because such claims
are âbased on facts implicating the defendantâs conduct during the course of a
patientâs care, treatment, or confinement . . . .â Weems, 575 S.W.3d at 363 (quoting
Loaisiga, 379 S.W.3d at 256). Radiologists therefore bear the burden to show that
they were employees of Shannon. As this determination pertains to whether
Radiologistsâ claims are HCLCs, we must look to the âpleadings, motions and
responses, and relevant evidence properly admittedâ filed in this case. Faber, 671
S.W.3d at 886 (quoting Loaisiga, 379 S.W.3d at 258).
Radiologists have not met their burden to show Shannon had a right of control
over their work. The record shows that Radiologists have employment contracts with
Shannon Clinic, which details the degree of control Shannon Clinic has over
Radiologists, the time for which they are employed, and the method of payment.7
Specifically, the agreements state that â[t]he Physician is a full-time employee of
[Shannon] Clinic, and agrees to devote his/her full professional time and attention
to the performance of his/her duties hereunder for and on behalf of the Clinic.â Such
duties include providing âmedical services and treatment to patients of the Clinic . . .
and patients from any managed care plan in which the Clinic is a participating
provider,â keeping and maintaining records in connection with services rendered
7
Radiologists note in passing that the employment agreements, which are attached to
Shannonâs motion to dismiss reply brief filed in the trial court, are unverified and unauthenticated.
However, the record does not reflect that Radiologists objected to these contracts before the trial
court, so we consider them as evidence. Seim v. Allstate Tex. Lloyds, 551 S.W.3d 161, 164 (Tex.
2018) (per curiam) (âTo preserve a complaint for appellate review, a party must (1) complain to
the trial court by way of âa timely request, objection, or motion; and (2) the trial court must rule or
refuse to rule on the request, objection, or motion.ââ (quoting Mansions in the Forest, L.P. v.
Montgomery Cty., 365 S.W.3d 314, 317 (Tex. 2012) (per curiam))).
17
under the agreement, and participating in Shannon Clinicâs patient care management
or patient safety programs. The agreements also provide compensation to the
Radiologists, listing a base salary, pooled compensation shared with other
radiologists employed by Shannon Clinic, bonus compensation, and additional
compensation for other services Radiologists provide to Shannon Clinic.
In contrast, the record does not support a conclusion that Shannon had
employment agreements with Radiologists, compensated Radiologists, or otherwise
sufficiently controlled âthe progress, details, and methods of operations ofâ
Radiologistsâ work to constitute a right of control. Stevenson, 622 S.W.3d at 277,
280 (quoting Limestone, 71 S.W.3d at 312). Radiologists argue that such control is
evidenced by Radiologistsâ affidavits averring that Radiologists had active medical
staff privileges at Shannon, reported to and received feedback from Shannonâs Chief
Medical Officer (âCMOâ), submitted their work results through a computerized
system maintained by Shannon, and that Shannon provided Radiologists with
regular training and guidance.
Radiologists also contend that other evidence supporting a right to control
include Shannonâs website listing the CMO of Shannon Clinic as part of its
leadership and listing its imaging department as located at the same address where
Radiologists worked, Radiologists receiving business cards featuring the Shannon
logo, and Shannon being the only hospital Radiologists were affiliated with. This
evidence is insufficient to establish a right of control by Shannon. However, we note
as an initial matter where the record supports a right to control. First, the Limestone
factor regarding a âworkerâs obligation to furnish necessary tools, supplies, and
materials to perform the jobâ favors Radiologists. Limestone, 71 S.W.3d at 312. That
is because Shannon acknowledges it âprovides equipment in a literal sense (the
radiology machines which are often immovable fixtures).â Notwithstanding that
18
fact, Shannon contends the Radiologistsâ real tools are the knowledge and expertise
in their minds, which Shannon does not supply. We reject Shannonâs contention that
intangibles such as knowledge and expertise constitute âtools, supplies, and
materials,â for the purpose of this factor. The words surrounding âtoolsââ
âsuppliesâ and âmaterialsââindicate âtoolsâ has a physical basis. Hilco Elec. Co-
op. v. Midlothian Butane Gas Co., Inc., 111 S.W.3d 75, 81 (Tex. 2003) (â[T]he rule
of ejusdem generis . . . provides that when words of a general nature are used in
connection with the designation of particular objects or classes of persons or things,
the meaning of the general words will be restricted to the particular designation.â).
Adopting Shannonâs interpretation would further render this factor meaningless as
every job, whether on the factory floor or in the hospital room, requires the use of
oneâs mind.
Second, Radiologistsâ proffered affidavits evidence that Radiologistsâ work
schedule is set by Shannon. Radiologists argue in their briefing that Shannon
âdetermined [Radiologistsâ] work,â but the affidavits cited in support of this
argument in fact state that Shannon determined Radiologistsâ âwork schedule.â
Nonetheless, even though Shannon contends Radiologistsâ employment agreements
state Radiologists are full-time employees of Shannon Clinic, the affidavits evidence
that Radiologists work on Shannonâs schedule rather than their own.8 But Shannon
providing the equipment Radiologists use and setting Radiologistsâ schedule is too
limited to rise to the level of a right of control on âthe progress, details, and methods
of operations ofâ Radiologistsâ work. Stevenson, 622 S.W.3d at 277, 280 (quoting
8
Shannon also argues the employment agreements give Shannon Clinic control over
Radiologistsâ scheduling through language stating