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Smart Summary

Factual and Procedural Background

In April 2000, the Bureau of Professional Medical Conduct charged Petar Muncan, a licensed physician, with gross negligence, multiple instances of negligence, gross incompetence, multiple instances of incompetence, and fraudulent practice related to his care and treatment of patient A. Specifically, petitioner removed a healthy kidney from patient A. After a hearing before the Hearing Committee of the State Board for Professional Medical Conduct, the Committee sustained the charges of gross negligence and multiple negligence, dismissed other charges, and imposed a 48-month suspension of petitioner's medical license, stayed for 42 months, and placed him on probation. On appeal, the Administrative Review Board (ARB) affirmed the Committee’s findings and penalty, and additionally sustained the fraudulent practice charge. Petitioner then initiated this CPLR article 78 proceeding seeking to annul only the ARB’s determination on the fraudulent practice charge.

Legal Issues Presented

  1. Whether the ARB’s determination that petitioner engaged in fraudulent practice was arbitrary, capricious, affected by an error of law, or an abuse of discretion.
  2. Whether the evidence was sufficient to support an inference that petitioner knowingly misrepresented material facts, thereby committing fraudulent practice.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Matter of Steckmeyer v. State Bd. for Professional Med. Conduct, 295 A.D.2d 815 (June 27, 2002) Standard of review for ARB determinations: whether determination is arbitrary, capricious, affected by error of law, or abuse of discretion; also supports inference of knowledge and intent from surrounding circumstances. The court applied this standard to limit its review and accepted that knowledge and intent to deceive may be inferred from the circumstances surrounding petitioner's conduct.
Matter of Katz v. Novello, 292 A.D.2d 652, 654 Definition of fraudulent practice requiring proof of intentional, deliberate, or knowing misrepresentation of a material fact. The court relied on this precedent to explain the burden of proof for fraudulent practice and to frame the legal standard for affirming the ARB's finding.

Court's Reasoning and Analysis

The court reviewed the ARB's determination under a deferential standard, focusing on whether it was arbitrary, capricious, legally erroneous, or an abuse of discretion. The court noted that fraudulent practice requires intentional misrepresentation but that intent may be inferred from the facts. The evidence showed that petitioner failed to review the actual CT scan and MRI films, relied on an erroneous report indicating a mass in the left kidney, and removed the left kidney despite finding no abnormalities during surgery. After being informed that a healthy kidney had been removed and possibly the wrong kidney, petitioner did not reconcile this information with the preoperative studies or correct the record. Instead, he discharged the patient with a diagnosis of left renal mass and later described a mass in the right kidney as a new tumor despite medical testimony indicating otherwise. The court found this conduct sufficient to infer that petitioner knowingly concealed his error, constituting fraudulent practice. Therefore, the ARB's determination was affirmed.

Holding and Implications

Holding: The ARB's determination sustaining the charge of fraudulent practice is confirmed, and the petition to annul that portion of the determination is dismissed.

Implications: The decision directly upholds the disciplinary action against petitioner, including the finding of fraudulent practice and the associated penalties. The opinion does not establish new legal precedent beyond affirming the application of existing standards to the facts of this case.

In the Matter of PETAR MUNCAN, Petitioner, v. STATE BOARD FOR PROFESSIONAL MEDICAL CONDUCT et al., Respondents.

MEMORANDUM AND JUDGMENT

Crew III, J.P.

In April 2000, the Bureau of Professional Medical Conduct charged petitioner, a licensed physician, with gross negligence, negligence on more than one occasion, gross incompetence, incompetence on more than one occasion and fraudulent practice. The charges stemmed from petitioner's care and treatment of patient A wherein petitioner, among other things, removed a healthy kidney from patient A's body. Following a hearing before a Hearing Committee of respondent State Board for Professional Medical Conduct (hereinafter the Committee), the Committee sustained the specifications alleging that petitioner had practiced with gross negligence and negligence on more than one occasion and dismissed the remaining charges. As to penalty, the Committee suspended petitioner's license to practice medicine for 48 months, stayed said suspension for 42 months and placed petitioner on probation. Upon appeal to respondent Administrative Review Board for Professional Medical Conduct (hereinafter the ARB), the ARB affirmed the Committee's findings as to guilt and penalty and, further, sustained the specification alleging fraudulent practice. Petitioner thereafter commenced this proceeding pursuant to CPLR article 78 seeking to annul only that portion of the ARB's determination pertaining to the charge of fraudulent practice.

In reviewing the ARB's determination, our inquiry is of course limited to ascertaining whether such determination is arbitrary and capricious, is affected by an error of law or constitutes an abuse of discretion (see, Matter of Steckmeyer v. State Bd. for Professional Med. Conduct, 295 A.D.2d 815 [June 27, 2002], slip opn p 3). To that end, although it is well settled that "[a] finding of fraudulent practice requires proof that a party intentionally, deliberately or knowingly misrepresented a material fact" (Matter of Katz v. Novello, 292 A.D.2d 652, 654), it is equally well settled that knowledge and intent to deceive may be inferred from the surrounding circumstances (see, Matter of Steckmeyer v. State Bd. for Professional Med. Conduct, supra, at slip opn p 4).

Here, a preoperative CT scan report indicated the presence of a 5 centimeter by 7 centimeter mass in patient A's left kidney. Petitioner admittedly did not review either the actual CT scan or the MRI films prior to surgery and did not have such films with him in the operating room on the day of the surgery. Had he done so, he would have discovered that the CT scan report erroneously indicated that there was a mass in patient A's left kidney when in fact such mass was located in patient A's right kidney. Upon exposing the left kidney, petitioner observed no gross abnormalities or deformities and was unable to palpate any masses. Nonetheless, petitioner removed the left kidney and sent it to the hospital's pathology department for examination. That same day, petitioner was advised that he had removed a healthy kidney; indeed, it even was suggested to him that he may have removed the wrong kidney. Despite this information, petitioner made no attempt to reconcile the results of the preoperative tests with what he had observed in the operating room and what the subsequent dissection of the left kidney had disclosed. Rather, petitioner discharged patient A with a postoperative diagnosis of left renal mass, failing to note that he had in fact removed a tumor-free kidney. When, in September 1999, another CT scan revealed the presence of a 6 centimeter by 7 centimeter mass in patient A's right kidney, petitioner deemed this to be a "new" tumor that was not present on the CT scan conducted four months earlier. Such a diagnosis, however, appears highly suspect given the medical testimony that this "new" tumor was in the same location and had the same consistency and appearance as the tumor appearing in the prior CT study. The record also makes clear that it was highly unlikely that a tumor of this dimension could have achieved such size during the relatively brief period of time between the two CT studies.

There also was testimony that a mass of the size depicted on the initial CT scan could not possibly have disappeared in the interval between such test and the actual surgery.

In our view, such evidence, taken as a whole, is sufficient to support an inference of fraud — namely, that petitioner knew he had removed the wrong kidney and, instead of taking steps to rectify that situation, intentionally concealed his mistake. Accordingly, the ARB's determination is confirmed and the underlying petition is dismissed.

Carpinello, Mugglin, Rose and Lahtinen, JJ., concur.

ADJUDGED that the determination is confirmed, without costs, and petition dismissed.

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IN RE MUNCAN v. STATE BD. FOR PROF. MED
(Jul 18, 2002)