Justia Medical Malpractice Opinion SummariesArticles Posted in Contracts
Lake Imaging LLC v. Franciscan Alliance, Inc.
The Supreme Court held that a breach of contract claim for failure to indemnify need not follow the procedures contained in the Medical Malpractice Act (MMA).While Joseph Shaughnessy was a patient at Franciscan Alliance, Inc., Lake Imaging LLC interpreted two CT scans performed on Joseph. Joseph subsequently died. Joseph's sons filed with the Department of Insurance (DOI) a proposed medical-malpractice complaint against Franciscan without naming Lake Imaging. The DOI served the proposed complaint on Franciscan, which settled with the Shaughnessys. Franciscan then filed suit against Lake Imaging, alleging breach of contract. The trial court dismissed the claim. The court of appeals affirmed, concluding that because Franciscan's claim rested on Lake Imaging's alleged medical negligence, the MMA's two-year statute of limitations applied, and thus the complaint was untimely filed. See Ind. Code § 34-18- 7-1(b). The Supreme Court reversed, holding that the MMA did not apply in this case, and therefore, the trial court had subject matter jurisdiction and the MMA's statute of limitations did not apply. View "Lake Imaging LLC v. Franciscan Alliance, Inc." on Justia Law
Pappas v. Chang
Pappas sued Dr. Chang for malpractice. During mediation, they agreed that Chang would pay Pappas $100,000. Both parties and their counsel signed a settlement agreement, which provided that Pappas “will execute a release of all claims ... in a more comprehensive settlement agreement ... to include a provision for mutual confidentiality as to the facts ... the terms and amount of this agreement.” The parties unsuccessfully negotiated the “more comprehensive settlement agreement” and “provision for mutual confidentiality” for months. Pappas discharged her attorney and, representing herself, advised Chang’s attorney that she would only comply with a confidentiality provision if she received $525,000, then sued Chang for breach of contract.The trial court ruled against Pappas “because she has not signed a ‘more comprehensive settlement agreement’ and release which includes a provision for mutual confidentiality.” In consolidated appeals, the court of appeal affirmed, rejecting an argument that a confidentiality provision would be against public policy and violate the Business and Professions Code. The court also rejected Chang’s appeal of the trial court’s denial of her attorney fees as costs of proof at trial (Code Civ. Proc., 2033.420) based on its finding that Pappas’s denial of two requests for admission was based on a good faith belief she would prevail at trial and that the requests went to the ultimate issue. View "Pappas v. Chang" on Justia Law
Jackson v. Legacy Health Services, Inc.
The Supreme Court reversed the decision of the court of appeals reversing order of the circuit court denying the motion of Legacy Health Services, Inc. Cambridge Place Group, LLC, and Cambridge Place Properties, LLC (collectively, Defendants) to dismiss or stay this lawsuit and compel arbitration of the medical malpractice claims brought by Christopher Jackson, as guardian for Christine Jackson, his mother, holding the court of appeals erred.At issue was whether Christopher possessed the authority, as his mother's guardian, to enter a voluntary arbitration agreement that was not a prerequisite to the provision of care or services to his ward. The circuit court concluded that Christopher did not have that authority. The court of appeals reversed, holding that a guardian's authority to enter into contracts generally is within the ambit of what is reasonably inferable from the relevant statutes. The Supreme Court reversed, holding (1) guardians have the authority to bind their wards to contracts that limit or deprive the civil rights of their wards only to the extent necessary to provide needed care and services to the ward; and (2) because the arbitration agreement was not necessary to provide care or services to Christine, Christopher lacked the authority to enter into the arbitration agreement. View "Jackson v. Legacy Health Services, Inc." on Justia Law
Kostoglanis v. Yates
The Supreme Court affirmed the decision of the district court granting Defendants' motion for summary judgment and dismissing Plaintiff's claims for negligent misrepresentation, fraudulent misrepresentation, and breach of contract, holding that Plaintiff's claims were subject to the two-year statute of limitations set forth in Iowa Code 614.1(9) and were untimely.On Defendants' motion for summary judgment, the district court held that Plaintiff's causes of action arose out of patient care and were barred by section 614.1(9), the two-year statute of limitations governing malpractice action. The Supreme Court affirmed, holding that each of Plaintiff's allegations originated from representations regarding patient care and the patient care Defendants provided, and therefore, Plaintiff's claims were untimely under section 614.1(9). View "Kostoglanis v. Yates" on Justia Law
Medical Protective Co. of Fort Wayne, Indiana v. American International Specialty Lines Insurance Co.
In 2002, in Texas, Dr. Phillips performed a laparoscopic hysterectomy on Bramlett, a 36-year-old mother. While hospitalized, Bramlett suffered internal bleeding and died. Her family filed a wrongful death lawsuit against the hospital and Dr. Phillips, who held a $200,000 professional liability insurance policy with MedPro. He notified MedPro of the lawsuit. In 2003, the hospital settled with the Bramletts for approximately $2.3 million. The Bramletts wrote to Dr. Phillips’s attorney, Davidson, with a $200,000 Stowers demand; under Texas law, if an insurer rejects a plaintiff's demand that is within the insured’s policy limit and that a reasonably prudent insurer would accept, the insurer will later be liable for any amount awarded over the policy limit. MedPro twice refused to settle. The family won a $14 million verdict. The Supreme Court of Texas capped Dr. Phillips’s liability. The family sued MedPro, which settled. MedPro was insured by AISLIC, which declined to cover MedPro’s settlement. The district court granted AISLIC summary judgment, concluding that coverage was excluded because MedPro should have foreseen the family’s claim. An exclusion precluded coverage for “any claim arising out of any Wrongful Act” which occurred prior to June 30, 2005, if before that date MedPro “knew or could have reasonably foreseen that such Wrongful Act could lead to a claim.” The Seventh Circuit reversed in part, finding genuine issues of material fact regarding whether MedPro’s failure to settle was a Wrongful Act and whether MedPro could have foreseen a "claim" before the malpractice trial. View "Medical Protective Co. of Fort Wayne, Indiana v. American International Specialty Lines Insurance Co." on Justia Law
Serico v. Rothberg
This appeal stemmed from plaintiff Lucia Serico’s motion for attorney’s fees and other litigation expenses pursuant to Rule 4:58 after a jury trial on medical malpractice claims against Robert Rothberg, M.D. At issue was whether Serico could collect attorney’s fees from Rothberg despite entering into a “high-low agreement” that limited the amount she could recover at trial to $1,000,000. Based on the expressed intent of the parties and the context of the agreement, the New Jersey Supreme Court found the agreement set $1,000,000 as the maximum recovery. Therefore, Serico could not seek additional litigation expenses allowed by Rule 4:58. View "Serico v. Rothberg" on Justia Law
Shaw v. United States
Scotty, born in 1979 at Madigan Army Medical Center, suffered injuries during childbirth, resulting in brain damage, cerebral palsy, seizures, and blindness, necessitating ongoing, around-the-clock care. The Shaws sued and agreed to a settlement, which stated that payments described in paragraph 5 and the purchase of annuities described in paragraph 6 “shall constitute a complete release.” Paragraph 5 provided that the government would pay: $500,000 to the Shaws; $500,000 to Scotty's medical trust; $850,000 to the Shaws’ attorneys; and, for the purchase of annuities to provide payments set forth in paragraph 6, $2,950,000.00. Paragraph 6 set forth the terms for the annuities. Four annuities are at issue: one each for Mr. and Ms. Shaw, one for the guardianship for the benefit of Scotty, and one for the medical trust. The government made each of the specified payments, including $2,846,095 to purchase the annuities. The agreement stated that payments from the annuities for Mr. and Ms. Shaw “are guaranteed for a period of twenty (20) years.” Paragraph 7 noted that the “settlement is contingent on a total, final cost of $4,800,000.00.” The annuities were purchased from ELNY, which later encountered financial difficulties and entered into court-ordered liquidation in 2012. The Shaws's annuity payments were reduced by 20%; payments to the guardianship and the medical trust were reduced by 62.4%. The Shaws sued. The Federal Circuit affirmed summary judgment in favor of the government, which was obligated to guarantee the annuity payments only for the first 20 years. The reduction in payments began after that period. The Shaws lacked standing to sue on behalf of the medical trust. View "Shaw v. United States" on Justia Law
Kaplan v. Mayo Clinic
After a surgical procedure was performed on Elliot Kaplan as a result of a misdiagnosis, the Kaplans filed suit against Mayo for medical malpractice, breach of contract, lack of informed consent, and loss of consortium. The district court dismissed all claims against Dr. Nagorney, the surgeon who performed the medical procedure; the district court granted Mayo's motion for judgment as a matter of law on the breach-of-contract claim; and the jury returned a verdict for defendants on the malpractice claim. On appeal, the court upheld the jury verdict but vacated the judgment in favor of Mayo on the breach-of-contract claim, and held that the district court erred by requiring expert testimony to establish a contract breach and remanded the claim to trial. The district court subsequently entered judgment for Mayo. The court concluded that substantial evidence supports the district court's finding that Dr. Nagorney did not promise to do a biopsy of Elliot’s pancreas during the surgery and that no meeting of the minds occurred to form a contract. The court rejected plaintiffs' claim that this court, in Kaplan I, forbid defendants' use of expert testimony to establish a defense to the claim of a special contract in the performance of the operation. Because the district court committed no error, the court upheld the district court's factual findings. Accordingly, the court affirmed the judgment. View "Kaplan v. Mayo Clinic" on Justia Law
Searcy, Denney, Scarola, Barnhart & Shipley. v. Florida
In 1997, Aaron sustained a catastrophic brain injury at birth due to the negligence of employees at Lee Memorial. The family retained the law firm, under a contingency fee agreement providing for payment of 40 percent of any recovery if a lawsuit was filed, plus costs, and stating that if "one of the parties to pay my claim for damages is a governmental agency, I understand that Federal and Florida Law may limit the amount of attorney fees ... in that event, I understand that the fees owed ... shall be the amount provided by law.” A jury awarded the child $28.3 million, the mother $1.34 million, and the father $1 million. Because the hospital was an independent special district of the state, the court enforced the sovereign immunity damage limitations and entered a judgment for $200,000, which was affirmed. The firm pursued a two-year lobbying effort to secure a claims bill from the Legislature. In 2012 the Legislature passed a claims bill, directing Lee Memorial to pay $10 million, with an additional $5 million to be paid in annual installments to a special needs trust for Aaron, stating that payment of fees and costs from those funds shall not exceed $100,000. No funds were awarded for the parents. The firm petitioned the guardianship court to approve a $2.5 million for attorneys’ fees and costs. The court denied the request. On appeal, the district court affirmed. The Supreme Court of Florida reversed, holding that the fee limitation in the claims bill is unconstitutional and may not stand when such a limitation impairs a preexisting contract. View "Searcy, Denney, Scarola, Barnhart & Shipley. v. Florida" on Justia Law
Gores v. Miller
Fifteen-year-old Haley Gores was a passenger in a vehicle driven by Steven Smith when Smith lost control of the vehicle. Haley was treated by Dr. Lisa Miller for injuries she received during the accident. Dawn Gores, Haley’s mother and conservator, signed a general release in exchange for a settlement with Smith and Smith’s insurer. The release did not specifically name the treating physician or clinic, but it released al other claims that might develop from the accident. Haley and Dawn subsequently filed a malpractice suit against Dr. Miller and Yankton Surgical Associates (YSA), Dr. Miller’s practice group. Dr. Miller and YSA filed a motion for summary judgment, arguing that the release discharged Plaintiffs’ claims against them. The circuit court granted summary judgment, concluding that, based on the language of the release, the malpractice claims were discharged as a matter of contract. The Supreme Court affirmed, holding that the circuit court correctly determined that the release barred Plaintiffs’ claims as a matter of contract. View "Gores v. Miller" on Justia Law