Arrendale v. Orthopaedics Northeast, P.C.
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In this case considering Sword v. NKC Hospitals, Inc., 417 N.E.2d 142 (Ind. 1999), and the Restatement (Second) of Torts section 429's reasoning and application to a non-hospital diagnostic medical imaging center, the Supreme Court held that Sword and section 429's apparent agency principles apply to non-hospital medical entities that provide patients with health care.
In Sword, the Supreme Court adopted section 429 and held that a hospital may be held vicariously liable for the tortious conduct of an independent contractor through apparent or ostensible agency. In the instant case, Plaintiff alleged medical malpractice related to his MRI and imaging care. Marion Open MRI moved for summary judgment, arguing that it was not liable for the actions of the radiologist with whom Marion Open MRI contracted. The trial court granted summary judgment in favor of Marion Open MRI, finding that Indiana's appellate court have applied Sword's apparent agent principles only to hospitals and not to non-hospital medical entities. The Supreme Court reversed, holding that Sword and its apparent agency rules apply to non-hospital medical entities.
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