HCRA of Texas, Inc. v. Johnston

178 S.W.3d 861, 2005 Tex. App. LEXIS 9213, 2005 WL 2897559
CourtCourt of Appeals of Texas
DecidedNovember 3, 2005
Docket2-03-321-CV
StatusPublished
Cited by64 cases

This text of 178 S.W.3d 861 (HCRA of Texas, Inc. v. Johnston) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
HCRA of Texas, Inc. v. Johnston, 178 S.W.3d 861, 2005 Tex. App. LEXIS 9213, 2005 WL 2897559 (Tex. Ct. App. 2005).

Opinion

OPINION

SUE WALKER, Justice.

I. INTRODUCTION

This is a nursing home liability case. The trial court rendered judgment on the *865 jury’s verdict for Appellees Margie Fay Johnston, Tommy Lloyd Johnston, Gary Wayne Johnston, and Douglas Lee Johnston, individually and on behalf of the estate of Lloyd Thomas Johnston, deceased (collectively Appellees or Johnstons) and against Appellant HCRA of Texas, Inc. The primary issues we address involve the sufficiency of the evidence to support the jury’s damage awards and malice finding. Because we hold that legally insufficient evidence exists to support the jury’s malice finding, we will reverse the judgment’s exemplary damages award and render judgment that Appellees take nothing on their exemplary damages claim. Because the evidence is legally and factually sufficient to support the jury’s damage findings, we will affirm the remainder of the trial court’s judgment.

II. Factual Background

Lloyd Thomas Johnston, a seventy-one-year-old man, underwent bypass surgery and, as a result of complications from that surgery, was hospitalized for eighty-four days. During this time a feeding tube, a J-tube, assisted in feeding Lloyd. Lloyd was steadily recovering but needed additional rehabilitation. On May 21,1999, the hospital discharged Lloyd to HCRA for rehabilitation.

Lloyd had colonized MSRA when he was admitted to HCRA. 1 Lloyd initially made progress at HCRA. According to Lloyd’s son, HCRA employees worked well with Lloyd and provided successful physical therapy rehabilitation to Lloyd; the family saw an improvement in Lloyd’s mobility and strength about every two days. But around June 10, 1999, after approximately three weeks at HCRA, Lloyd’s health took a turn for the worse. On June 15th, after twenty-five days at HCRA, Lloyd’s condition had severely deteriorated; Dr. Aziz Klavon ordered Lloyd transferred immediately by ambulance to the hospital emergency room. Lloyd died less than twenty-four hours later. Lloyd’s death certificate indicates that he died of multi-system organ failure secondary to sepsis, septic shock. Lloyd’s death certificate listed is-chemic colitis as a tertiary cause of death. Lloyd’s family and experts presented evidence that at HCRA Lloyd was not properly cleaned or repositioned — causing him to develop decubitus ulcers, he was not properly nourished, he was not given his medicines, his urine output and body temperature were not measured, his room was not cleaned, and HCRA kept inadequate records and fabricated some records.

Appellees explain that their theory of the case at trial was that HCRA injured Lloyd “by, among other things, allowing the formation of decubitus ulcers, causing serious infection, and knowingly allowing [Lloyd] to lie unattended in his own excrement.” HCRA’s theory of the case was that Lloyd’s sepsis and death were the result of a new and independent cause— ischemic colitis.

III. Procedural Background

The negligence special question submitted to the jury was segregated into two subparts: did HCRA’s negligence proximately cause injuries to Lloyd and did the negligence of HCRA proximately cause the death of Lloyd. The trial court also gave the jury an instruction on new and independent cause. The jury determined that HCRA’s negligence did proximately cause injuries to Lloyd and determined that $17,805 for medical expenses and $75,000 *866 for physical pain and mental anguish would have fairly and reasonably compensated him for those injuries. The jury also found that HCRA’s alleged negligence did not proximately cause Lloyd’s death and, consequently, the jury did not answer any of the wrongful death damages questions.

The jury further found that HCRA’s director of nursing, Margie Burns, was employed by HCRA in a managerial capacity and was acting in the scope of that capacity when she acted with malice, causing harm to Lloyd. The jury found that $1,000,000 in punitive damages should be assessed against HCRA. The trial court declined to apply the statutory punitive damages cap, concluding that Lloyd’s estate’s claims fell within the injury-to-the-elderly exception to the cap. The trial court overruled all post-verdict motions and rendered judgment on the jury’s verdict.

IV. Standing

In its first issue, HCRA asserts that Appellees did not establish standing to bring a survival action on behalf of Lloyd’s estate. Since. HCRA filed its appellate brief in this case, the Texas Supreme Court decided Austin Nursing Center, Inc. v. Lovato, 171 S.W.Sd 845, 48 Tex. Sup.Ct. J. 624, 624-80, 2005 WL 1124764, at *4 (Tex. May 13, 2005) and Lorentz v. Dunn, 171 S.W.3d 854, 856, 48 Tex. Sup. Ct. J. 630, 630-32 (Tex. 2005). In both Lovato and Lorentz the supreme court recognized that, in a survival action, the decedent’s estate has a justiciable interest in the controversy sufficient to confer standing. Lovato, 171 S.W.3d at 849-50; Lorentz, 171 S.W.3d at 856. Because the pleadings in this case alleged that HCRA’s negligent conduct injured Lloyd, his estate had standing to pursue the present claim. See Lovato, 171 S.W.3d at 49-50; Lorentz, at 856.

HCRA also claims that Appellees did not prove that they were Lloyd’s heirs and that no administration of his estate was pending or necessary. This contention does not, however, present an issue of standing. This issue is “more appropriately characterized as one of capacity.” Lovato, 171 S.W.3d at 848-49. Unlike standing, which may be raised for the first time on appeal, a challenge to a party’s capacity must be raised by a verified pleading in the trial court. Id.; Tex.R. Civ. P. 93(1)-(2). Because HCRA did not challenge Ap-pellees’ capacity to sue for survival benefits in the trial court, its complaint that Appellees failed to prove their legal authority to bring a survival action is waived. See generally Tex.R.App. P. 33.1 (discussing prerequisites for preserving a complaint for appellate review). Accordingly, we overrule HCRA’s first issue.

V. Interest

HCRA complains in its eighth and ninth issues that the judgment contains an incorrect starting date for, and rate of, prejudgment interest as well as an incorrect postjudgment interest rate. The trial court signed the judgment in this case on August 14, 2003. The judgment awards $37,122 in prejudgment interest on the survival damages found by the jury and awards postjudgment interest at the rate of ten percent per annum, compounded annually 'on the total judgment.

We first address HCRA’s complaint concerning the date on which prejudgment interest began to run. HCRA argues that the judgment appears to calculate prejudgment interest from June 15, 1999, the date Lloyd was transported to the hospital emergency room, but “[tjhere is no way to determine from the face of the judgment how this award was calculated.” HCRA, as the appellant, bears the burden of establishing

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Bluebook (online)
178 S.W.3d 861, 2005 Tex. App. LEXIS 9213, 2005 WL 2897559, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hcra-of-texas-inc-v-johnston-texapp-2005.