On May 8, 2008, the Kadlec decision was reversed. The 5th Circuit Court of Appeals reversed the District Court’s opinion, which included a holding that Lakeview Medical Center (“Lakeview”) and Lakeview Anesthesia Associates (“LAA”) had a duty to disclose to Kadlec Medical Center that Dr. Berry, a former partner with LAA, had a drug problem when it made inquiry after Berry applied to Kadlec for medical staff membership. This Advisory summarizes the holding of the 5th Circuit Court and the impact of the reversal.