This section contains the nature of the case and procedural background.

The 'Bartron Clinic' was incorporated 'to conduct and operate a general medical and surgical hospital and clinic and employ duly licensed physicians, surgeons, nurses, students, and other persons to carry on the business of the said corporation.' Its 750 shares of capital stock were originally issued and held by duly licensed physicians and surgeons and by nurses and other employees of the corporation. Twenty-eight of its shares were held by Joyce H. Williams, a layperson. Except for some minor services of an intern, all of the professional services involved herein were performed by duly licensed physicians and surgeons employed at fixed salaries by the corporation, and all charges therefor accrued to and were made by the corporation. The corporation owned all equipment used by the doctors and maintained the supply of drugs furnished to patients. The corporation did not hold a license to practice medicine and surgery, nor to operate a pharmacy. On January 3, 1933, P and D executed and delivered two contracts in writing wherein P agreed to furnish hospitalization, medical and surgical services, and medicine to the county for its poor persons. These contracts were renewed from year to year until 1937. In February of that year, a like contract was executed and delivered between the parties to which all of the physicians employed by the corporation were added as parties. In February of 1938 a similar contract was made but was executed on the one side by Dr. Bartron. The court found that this contract signed by Dr. Bartron 'was made solely for and on behalf of P and with the intent that the same was to be performed by P.' The professional services and medicines furnished by D were rendered under these contracts. The court found 'that the said doctors employed by P rendered the services performed for the poor patients of D, as charged for in said claims as salaried employees of P, the corporation, and not otherwise, and solely for and on behalf of said corporation, and pursuant to their employment for such purpose by D.' There was not at any time throughout the existence of P any control, or effort to exercise control, as to the actual practice of medicine on the part of anybody other than a licensed physician and no interference, or attempted interference, by anybody other than a licensed physician. Case No. 8408 originated as a claim before D of $3,649.63 for medicine supplied to D indigent between January 1, 1938, and September 1, 1938. The claim was allowed by the commissioners for $2,044.50. This claim involved some medicines supplied by Dr. Bartron personally after P discontinued business on June 15, 1938. The circuit court disallowed the claim insofar as it included medicines furnished by P. Case No. 8409 originated for $6,588.20 issued by D pursuant to allowance by the board of commissioners of claims of the Bartron Clinic for professional services and medicines. The items were not contested by D. The court disallowed the items for professional services and medicines. Case No. 8410 originated by D to recover $47,000 paid out on claims of P for professional services and medicines furnished to the poor of Codington County during six years immediately preceding the commencement of the action. The trial court found for D and entered judgment against Ps for $29,220.37. The findings disclose that the county received and retained the professional services and medicines for which these payments were made. The circuit court concluded that this fact did not bar the right of D to claim full restitution. The court concluded that it is unlawful and contrary to public policy for a corporation to practice medicine or surgery and to operate a pharmacy or sell medicine without a license as required by the statutes of South Dakota. P appealed.

The legal issues presented in this case will be displayed here.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.