Horizon/CMS Healthcare Corporation v. Auld

34 S.W.3d 887, 43 Tex. Sup. Ct. J. 1151, 2000 Tex. LEXIS 88, 2000 WL 1199263
CourtTexas Supreme Court
DecidedAugust 24, 2000
Docket99-0169
StatusPublished
Cited by1,095 cases

This text of 34 S.W.3d 887 (Horizon/CMS Healthcare Corporation v. Auld) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Horizon/CMS Healthcare Corporation v. Auld, 34 S.W.3d 887, 43 Tex. Sup. Ct. J. 1151, 2000 Tex. LEXIS 88, 2000 WL 1199263 (Tex. 2000).

Opinion

Justice ABBOTT

delivered the opinion of the Court,

in which Justice HECHT, Justice ENOCH, Justice OWEN, and Justice GONZALES join.

The focus of this case is whether Texas Revised Civil Statutes article 4590i, section 11.02(a) (part of the Medical Liability and Insurance Improvement Act), or Texas Civil Practice and Remedies Code section 41.007, provides a statutory basis for capping punitive damages that are awarded in cases involving health-care-liability claims. We hold that the latter provision, section 41.007, provides the basis for capping the punitive damages that were awarded in this case, and that article 4590i, section 11.02(a), does not. We also hold that article 4590i, section 11.02 does, however, cap the amount of prejudgment interest awarded on Auld’s actual damages falling within section 11.02(a)’s cap. As a result, Auld is not entitled to the entire prejudgment interest award in this case. Other issues raised by the parties include the constitutionality of article 4590i, section 11.02, and evidentiary and procedural concerns. We agree with the court of appeals’ judgment on thése matters. Accordingly, we affirm the court of appeals’ judgment in part. With regard to that portion of the judgment affirming the trial court’s award of prejudgment interest to Auld, we hold that Auld may recover prejudgment interest awarded on the damages specifically excluded from article 4590i’s damages cap by section 11.02(b), but that Auld may recover prejudgment interest on damages subject to the cap only to the extent that such interest does not exceed the cap. Accordingly, we reverse in part and remand to the trial court to render judgment in accordance with this opinion.

I

Martha Hary became a resident at Heritage Western Hills Nursing Home (Heritage) in August 1994. When she arrived at Heritage, Hary suffered from, among other things, Alzheimer’s disease, anxiety, malnutrition, emphysema, and spinal arthritis. She resided at Heritage for about one year before she was hospitalized in Fort Worth, where she was treated for ten days. After her hospitalization, Hary was transferred to a different nursing home that is not a party to this suit.

Through her next friend Francis Orr, Hary filed suit against Horizon/CMS Healthcare Corporation (Horizon) alleging that its nursing home — Heritage—was *891 negligent and grossly negligent by failing to provide her with medical care and treatment within the acceptable standard of care. Hary alleged that substandard nursing care proximately caused her to develop pressure sores, that she suffered from contractures in all extremities, that not all the wound-care treatments and pressure-relieving devices that had been ordered were provided to her, and that the care actually administered for her pressure sores was painful. While the case was pending, Hary died from a heart attack. Hary’s administratrix, Lexa Auld, continued the suit through a survival action, which was tried to a jury.

The jury returned a verdict of $2,371,000 in actual damages, which included $1,750,000 for physical pain and mental anguish, $150,000 for disfigurement, $250,000 for impairment, and $221,000 1 for medical care. The jury also awarded $90,000,000 in punitive damages, based on its finding that the nursing home engaged in grossly negligent conduct toward Hary. The trial court reduced both the actual and punitive damages awards. The court applied the article 4590i cap to the actual damages award and reduced it to $1,541,203.13, which represented the capped limit, adjusted for changes in the consumer price index, 2 plus medical expenses, which the statute specifically excludes from the cap. See Tex.Rev.Civ. Stat. art. 4590i, §§ 11.02(a),(b), 11.04.

The court also reduced the punitive damages award from $90,000,000 to $9,483,766.92, based on the statutory cap on punitive damages awarded in personal injury suits found in Texas Civil Practices and Remedies Code section 41.007. This reduction was based on the version of the Texas Civil Practice and Remedies Code cap applicable at the time Hary’s cause of action accrued. It provided that “exemplary damages awarded against a defendant may not exceed four times the amount of actual damages or $200,000, whichever is greater.” Act of June 3, 1987, 70 th Leg., 1st C.S., ch. 2, § 2.12, sec. 41.007, 1987 Tex. Gen. Laws 37, 46, amended and renumbered by Act of April 11, 1995, 74th Leg., R.S., ch. 19, § 1, 1995 Tex. Gen. Laws 108, 111 (current version at Tex. Civ. PRAc. & Rem.Code § 41.008). Using this formula, the court multiplied the jury’s uncapped actual damages award 3 by four to calculate the punitive damage total of $9,483,766.92. 4 The trial court further awarded prejudgment interest on the capped actual damages at the rate of ten percent per annum, totaling $211,968.21. Both parties appealed. The court of appeals affirmed, finding no reversible error. 985 S.W.2d 216. We affirm all parts of the court of appeals’ judgment, except for the award of prejudgment interest on the capped amount of actual damages.

II

Punitive Damages

The court of appeals held that punitive damages awards in health-care-lia *892 bility claims are not capped by article 4590i, section 11.02(a). 985 S.W.2d at 224. Instead, the court of appeals affirmed the trial court’s application of the punitive damages cap found in Texas Civil Practice and Remedies Code section 41.007. Id. at 224, 234.

A

Article 4590i

Texas Revised Civil Statute article 4590i, section 11.02 provides:

(a) In an action on a health care liability claim where final judgment is rendered against a physician or health care provider, the limit of civil liability for damages of the physician or health care provider shall be limited to an amount not to exceed $500,000.
(b) Subsection (a) of this section does not apply to the amount of damages awarded on a health care liability claim for the expenses of necessary medical, hospital, and custodial care received before judgment or required in the future for treatment of the injury.

TEX.REV.Crv. Stat. art. 4590i, § 11.02(a),(b). Horizon argues that article 4590i should cap punitive damages in this case because the phrase “civil liability for damages” necessarily includes all obligations to pay damages in a civil case, without distinction between actual damages and punitive damages. Horizon focuses on the Legislature’s specific exclusion of certain types of medical expenses from section 11.02(a)’s application. Auld contends the opposite— that punitive damages are not capped under article 4590i because the term “damages,” as used in the statute, means “compensation for injury or loss,” which would not include punitive damages.

This Court’s ultimate goal in construing a statute is to give effect to the Legislature’s intent as expressed in the language of the statute. See Crimmins v. Lowry, 691 S.W.2d 582, 584 (Tex.1985).

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Cite This Page — Counsel Stack

Bluebook (online)
34 S.W.3d 887, 43 Tex. Sup. Ct. J. 1151, 2000 Tex. LEXIS 88, 2000 WL 1199263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/horizoncms-healthcare-corporation-v-auld-tex-2000.