Beverly Haceesa, Individually, and First Financial Trust Company, as Conservator for Shenoel Haceesa, a Minor v. United States

309 F.3d 722, 2002 U.S. App. LEXIS 22192, 2002 WL 31390854
CourtCourt of Appeals for the First Circuit
DecidedOctober 24, 2002
Docket01-2252
StatusPublished
Cited by51 cases

This text of 309 F.3d 722 (Beverly Haceesa, Individually, and First Financial Trust Company, as Conservator for Shenoel Haceesa, a Minor v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Beverly Haceesa, Individually, and First Financial Trust Company, as Conservator for Shenoel Haceesa, a Minor v. United States, 309 F.3d 722, 2002 U.S. App. LEXIS 22192, 2002 WL 31390854 (1st Cir. 2002).

Opinion

EBEL, Circuit Judge.

On the evening of Saturday, April 25, 1998, twenty-five year-old Hardy Haceesa walked into a hospital emergency room complaining of a fever, difficult and painful breathing, chest discomfort, and general achiness. He told the nurse he thought his condition could be the result of exposure to mice. Haceesa was sent home that night, diagnosed with bronchitis and told to check back at the local clinic on Monday. By Tuesday evening, he was dead.

Only after his death was Haceesa’s disease diagnosed correctly: he died of han-tavirus pulmonary syndrome, a rare, dead *724 ly disease caused by exposure to airborne particles of the urine of infected mice and characterized in its early stages by flu-like symptoms. Haceesa was a Navajo Indian, and the hospital where he was first seen on April 25 — the Northern New Mexico Navajo Hospital in Shiprock, New Mexico — is owned and operated by the Indian Health Service, an agency of the United States Department of Health and Human Services. As the district court observed, Shiprock Hospital stands “in the geographic center of the world for” hantavi-rus.

The present suit was brought by Hacee-sa’s widow Beverly Haceesa and his four year-old daughter Shenoel, alleging medical malpractice in the failure to diagnose Haceesa’s hantavirus. The suit was brought against the United States under the Federal Tort Claims Act (FTCA), 28 U.S.C. §§ 1346(b), 2671 et seq. After a bench trial in federal district court for the District of New Mexico, the court found the Government liable and awarded the Plaintiffs damages of over $2.1 million. 1 On appeal, the Government no longer disputes its liability, but challenges the damages awarded on three distinct grounds. First, it argues that New Mexico’s $600,000 statutory cap on medical malpractice recoveries applies to the Plaintiffs’ suit. Second, the Government argues that its liability should be reduced to reflect its comparative negligence relative to a subsequent health care provider that also failed to diagnose Haceesa’s hantavirus. Third, it argues that certain of the Plaintiffs’ claims are barred because they were not administratively exhausted at the time suit was filed. The district court rejected all three arguments. We conclude that the district court erred (1) in concluding that the recovery cap did not apply; (2) in failing to calculate the Government’s liability on the basis of New Mexico’s “loss of chance” approach; and (3) in concluding that the Estate’s claim for wrongful death was timely filed. Accordingly, we reverse and remand for further proceedings consistent with this opinion.

I. APPLICATION OF THE FTCA TO NEW MEXICO’S CAP ON MEDICAL MALPRACTICE RECOVERIES

The district court awarded the Plaintiffs over $2.1 million in damages. The Government argues on appeal that this damages award should have been subject to New Mexico’s $600,000 cap on medical malpractice recoveries. N.M. Stat. § 41-5-6(A) (“the recovery cap”). The district court rejected this argument:

The New Mexico cap on damages under the New Mexico Medical Malpractice Act does not apply in this case. The cap only applies to negligence by a “health care provider,” which is defined as a “person, corporation, organization, facility or institution licensed or certified by this state to provide health care or professional services as a doctor of medicine, hospital, outpatient health care facility, doctor of osteopathy, chiropractor, *725 podiatrist, nurse anesthetist or physician’s assistant.” NMSA § 41-5-3(A). Plaintiffs’ claims against the hospital administrators who elected to provide absolutely no training to Nurse Rhodes, as well as their claims of negligence against Nurse Rhodes, are not capped under the statute.

In other words, the district court concluded that (1) the recovery cap applies only to suits against health care providers, and (2) that Haceesa’s suit against hospital administrators and a nurse was not a suit against health care providers. On appeal, the Government challenges each of these conclusions. The Plaintiffs, meanwhile, argue for affirmance on the alternative ground that, under New Mexico law, the Government is not entitled to the benefit of the recovery cap. After summarizing the relevant law, we address each of these three arguments below. 2

Under the FTCA, the United States is liable for its tortious conduct in the same manner and to the same extent as a private individual under like circumstances in that jurisdiction would be liable. 28 U.S.C. §§ 1346(b), 2674. Here, our charge is to determine fust the scope and applicability of the limits New Mexico statutes impose on the medical malpractice liability of private entities.

New Mexico’s recovery cap provides: “Except for punitive damages and medical care and related benefits, the aggregate dollar amount recoverable by all persons for or arising from any injury or death to a patient as a result of malpractice shall not exceed six hundred thousand dollars ($600,000) per occurrence.” N.M. Stat. § 41-5-6(A). “A health care provider’s personal liability is limited to two hundred thousand dollars ($200,000) for monetary damages and medical care and related benefits.... Any amount due from a judgment or settlement in excess of two hundred thousand dollars ... shall be paid from the patient’s compensation fund .... ” Id. § 41-5-1 (D). As the district court noted, the statute defines “health care provider” as a “person, corporation, organization, facility or institution licensed or certified by this state to provide health care or professional services as a doctor of medicine, hospital, outpatient health care facility, doctor of osteopathy, chiropractor, podiatrist, nurse anesthetist or physician’s assistant.” N.M. Stat. § 41-5-3(A). “ ‘Malpractice claim’ includes any cause of action arising in this state against a health care provider for medical treatment, lack of medical treatment or other claimed departure from accepted standards of health care .... ” Id. § 41-5-3(C).

Not all “health care providers,” however, are entitled to the benefit of the recovery cap: “A health care provider not qualifying under this section shall not have the benefit of any of the provisions of the Medical Malpractice Act in the event of a malpractice claim against it.” Id. § 41-5-5(C). In order to be “qualified,” a health care provider must “(1) establish its financial responsibility by filing proof ... of malpractice liability insurance ... of at least two hundred thousand dollars ...; and (2) pay the [Patient’s Compensation Fund] surcharge.” Id. § 41-5-5(A).

*726 A. Whether the recovery cap applies to a suit against the Government

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309 F.3d 722, 2002 U.S. App. LEXIS 22192, 2002 WL 31390854, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beverly-haceesa-individually-and-first-financial-trust-company-as-ca1-2002.