B.T. Health Care, Inc., D/B/A Bender Terrace v. Thurman Honeycutt, as and Representative of the Estate of Ronald Honeycutt

Court of Appeals of Texas·Decided May 18, 2006·No. 07-04-00084-CV·Published

Opinion

NO. 07-04-0084-CV

IN THE COURT OF APPEALS

FOR THE SEVENTH DISTRICT OF TEXAS

AT AMARILLO

PANEL D

MAY 18, 2006 ______________________________

B.T. HEALTHCARE, INC. d/b/a BENDER TERRACE,

Appellant

v.

THURMAN HONEYCUTT, as executor and representative of the estate of RONALD HONEYCUTT,

Appellee _________________________________

FROM THE 99TH DISTRICT COURT OF LUBBOCK COUNTY;

NO. 2002-516,937; HON. ANDREW J. KUPPER, PRESIDING _______________________________

Opinion _______________________________

Before QUINN, C.J., and REAVIS and CAMPBELL, JJ.

B.T. Healthcare, Inc. d/b/a Bender Terrace (Bender) appeals from a judgment after

a jury trial in favor of Thurman Honeycutt, as executor and representative of the estate of

his brother Ronald Honeycutt (Honeycutt). In four issues, Bender argues that 1) the trial

court erred by failing to apply the applicable settlement credit, 2) the trial court erred by

failing to include IHS Lubbock in the court’s jury charge “for purposes of determining

percentages of responsibility,” 3) the evidence was legally and factually insufficient to support the award of medical expenses, and 4) the evidence was legally and factually

insufficient to support the award for pain and suffering. We reverse the judgment and

remand the cause.

Background

In June 2000, Honeycutt was rendered a quadriplegic at the age of 50 after falling

and hitting his head against a vehicle. Upon receiving treatment for a broken neck at

Covenant Medical Center, he was transferred to IHS Lubbock (a nursing home) in August

2000. Approximately a month later, he was transferred to Bender, another nursing home.

According to the record, Honeycutt had suffered from pressure (bed) sores since his injury.

They grew in number and severity while at Bender. This resulted in his return to Covenant

Medical Center in early November of 2000 for treatment. Honeycutt never returned to

Bender but was instead sent to other homes.

Honeycutt sued, on July 1, 2002, Bender and IHS Lubbock. IHS Lubbock settled

with Honeycutt before trial for $295,000. The settlement was executed by its parties in

January of 2003. This left Bender as the sole defendant. Moreover, a jury found it 51%

negligent for Honeycutt’s injuries, while Honeycutt was found 49% negligent. So too did

it award Honeycutt $350,000 for pain and suffering and $180,000 in medical expenses.

Based upon the award and percentages of responsibility, the trial court entered judgment

ordering Bender to pay Honeycutt $270,300 in damages, plus interest, and costs.

Issue One - Settlement Credit

Bender initially contends that the trial court erred in failing to give it credit for the

settlement amount ($295,000) paid by the IHS defendants. We sustain the issue.

2 The matter before us is reviewed under the standard of abused discretion. Tex.

Capital Sec. v. Sandefer, 108 S.W.3d 923, 925 (Tex. App.–Texarkana 2003, pet. denied).

Next, and at the time Honeycutt settled with IHS Lubbock, statute required a trial court to

deduct from a claimant’s recovery, a sum equal to the claimant’s percentage of

responsibility for his own injuries. TEX . CIV . PRAC . & REM . CODE ANN . §33.012(a) (Vernon

Supp. 2005). Also included in §33.012 was another provision requiring a reduction in the

claimant’s recovery from the remaining defendants when one or more defendants settled.

The amount of credit was susceptible to calculation under various formulas which the non-

settling defendant had the option to select. The formula chosen by Bender entitled it to a

credit equal to “the sum of the dollar amounts of all settlements.” Id. §33.012(b) (describing

the options).

To receive the credit, Bender had the burden to prove its entitlement to same. See

Utts v. Short, 81 S.W.3d 822, 828 (Tex. 2002) (stating that a defendant seeking a

settlement credit has the burden to prove its right to it). Yet, this burden was and is not a

difficult one. Indeed, to obtain a dollar-for-dollar credit, it had only to elect same in writing

before the cause was submitted to the factfinder and assure that the record disclosed the

settlement amount. Id. Upon Bender doing that, Honeycutt had the obligation to show that

certain amounts should not be credited because of the allocation in the settlement

agreement between damages susceptible to credit from those which were not. Id. In other

words, he had the burden to tender a valid settlement agreement allocating the settlement

monies between those subject to use as a credit and those not so subject. Mobil Oil Corp.

v. Ellender, 968 S.W.2d 917, 928 (Tex. 1998) (holding that the settling party must tender

to the trial court a settlement agreement allocating between actual and punitive damages

3 as a condition precedent to limiting dollar-for-dollar settlement credits to settlement

amounts representing actual damages). Should he fail in this regard, then the non-settling

party is entitled to a credit equaling the entire settlement amount. Id.

Here, the settlement agreement executed by Honeycutt and IHS Lubbock did not

expressly segregate funds to be excluded in the calculation of the credit from those to be

included. Honeycutt posits that the agreement nonetheless satisfies the requirements of

Ellender because it demarcates the particular causes of action being settled and those

causes relate solely to the acts of IHS Lubbock. We concede that while the better practice

may be to expressly specify the division contemplated in Ellender, no magic words are

necessary if the agreement nevertheless can be construed as having that effect. Yet, the

wording of the document at bar cannot be so construed.

In defining the misfeasance or malfeasance encompassed by the settlement, the

parties wrote:

Nursing treatment and services rendered or the failure to render medical and nursing care and treatment to Ronald Honeycutt in connection with his residency at IHS Acquisition No. 172, Inc. d/b/a IHS Hospital at Lubbock and IHS Acquisition No. 142, Inc. d/b/a IHS At The Park a/k/a IHS of Plano; medical and nursing care and treatment rendered by or the failure to render medical and nursing care and treatment by any employee or agent of any Released Party (as that term is defined herein); and claims brought or that could have been brought, events described in and issues related in any way to the lawsuit styled Thurman Honeycutt, As Executor and Representative of the Estate of Ronald Honeycutt v. Integrated Health Services, Inc., IHS Acquisition No. 172, Inc. d/b/a IHS Hospital at Lubbock, B.T. Health Care, Inc. d/b/a Bender Terrace, Damon H. Hill, Jr., M.D., and IHS Acquisition No. 142, Inc. d/b/a IHS At The Park a/k/a IHS of Plano; Cause No. 2002-516,937; in the 99th Judicial District Court of Lubbock County, Texas.

Admittedly, the first two passages ending with a semi-colon can be read as restricting the

scope of the settlement to those bed sores and like injuries caused solely by the conduct

4 of IHS Lubbock and its personnel.1 Yet, we cannot ignore the following passage wherein

the parties generally referred to the “claims brought or that could have been brought,

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