Indiana Patient's Compensation Fund v. Judy Holcomb, Personal Representative of the Estate of Mable Louise Cochran

17 N.E.3d 255, 2014 Ind. LEXIS 653, 2014 WL 4212690
CourtIndiana Supreme Court
DecidedAugust 26, 2014
Docket49S05-1404-CC-209
StatusPublished

This text of 17 N.E.3d 255 (Indiana Patient's Compensation Fund v. Judy Holcomb, Personal Representative of the Estate of Mable Louise Cochran) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Indiana Patient's Compensation Fund v. Judy Holcomb, Personal Representative of the Estate of Mable Louise Cochran, 17 N.E.3d 255, 2014 Ind. LEXIS 653, 2014 WL 4212690 (Ind. 2014).

Opinion

DICKSON, Justice.

This case presents a question of first impression: whether Indiana’s Medical Malpractice Act’s cap on attorney fees from a Patient Compensation Fund award also applies to reduce the Fund’s liability. In this adult wrongful death medical malpractice case, the trial court ordered payment by the Fund to the Estate, without any reduction to reflect the limitation on attorney fees. In a divided opinion, the Court of Appeals reversed and remanded. Ind. Patient’s Comp. Fund v. Holcomb, 998 N.E.2d 989 (Ind.Ct.App.2013). We granted transfer and now affirm the trial court.

Mable Louise Cochran died on January 8, 2011. Her daughter, Judy Holcomb, as personal representative of her mother’s estate, commenced an adult wrongful death medical malpractice action against Care-age of Logansport, Inc., alleging negligent care by the defendant nursing home, a *256 qualified health care provider under Indiana’s Medical Malpractice Act (MMA). See Ind.Code § 34-18 et seq. The Estate settled its claim against the nursing home for $250,000, the maximum liability of the health care provider under the MMA. This settlement was approved by Judge Thomas C. Perrone, Cass Superior Court No. 1. The Estate thereafter initiated this action by filing a petition to determine the amount of excess damages due to the Estate from the Indiana Patient’s Compensation Fund pursuant to Indiana Code section 34-18-15-3. The Estate and the Fund quickly reached an accord as to an itemized list of most of the Estate’s damages recoverable under the Adult Wrongful Death Statute (AWDS), Ind.Code § 34-23-1-1, but left the attorney fee component of damages for determination by the court. The Fund paid the Estate $101,166.89 to settle these damages. The Estate has argued that the Fund should pay an additional $50,440 for attorney fees. The Fund has not disputed the reasonableness of this amount but has argued that the 15% limit on attorney fees imposed by the MMA, see Ind.Code § 34-18-18-1 (the “Fee Cap Provision”), should be judicially expanded to directly apply to the Fund and to limit its liability on a basis unrelated to the specific attorney fee claim. Following a hearing, the trial court entered judgment accepting the Estate’s position and ordered the Fund to pay the Estate $50,440 as the Fund’s remaining liability for excess wrongful death damages.

On appeal, the Fund argues that, in an action to recover for the wrongful death of an adult, the Fee Cap Provision should be construed and applied such that the Fund should not be required to pay to a claimant an amount for attorney fees that exceeds the 15% Fee Cap Provision. The Fund requests that we reduce the trial court’s award to the Estate from $50,440 to $17,852.98. The Estate responds that the plain, clear, and unambiguous language of the Fee Cap Provision “merely limits what an attorney can charge a claimant from a recovery of excess damages from the [Fund], and does not limit or even address the assessment of attorney’s fees as a damage caused by a tortfeasor; and does not address the calculation of excess damages payable by the [Fund].” Appellee’s Br. at 8.

The principal statutory provision at issue, the Fee Cap Provision, states as follows:

When a plaintiff is represented by an attorney in the prosecution of the plaintiffs claim, the plaintiffs attorney’s fees from any award made from the patient’s compensation fund may not exceed fifteen percent (15%) of any recovery from the fund.

Ind.Code § 34-18-18-1.

Under the MMA, the Fund must pay all damages in excess of the initial $250,000 payable from qualified health care providers. 1 Damages recoverable under the AWDS include reasonable attorney fees incurred in the prosecution of an ac *257 tion. See Ind.Code § 34-23-1-1 (stating that the remainder of the damages, after paying for reasonable medical, hospital, funeral and burial expenses, inure in part “to the personal representative, as such, for the necessary and reasonable costs and expenses of administering the estate and prosecuting or compromising the action, including a reasonable attorney’s fee_”) (emphasis added); Ind.Code § 34-23-1-2(c). Our case law confirms that reasonable attorney fees and litigation expenses incurred in the prosecution of an action under the AWDS are an element of damages. See McCabe v. Comm’r, Ind. Dep’t of Ins., 949 N.E.2d 816, 821 (Ind. 2011); Hematology-Oncology of Ind., P.C. v. Fruits, 950 N.E.2d 294, 297 (Ind.2011) (applying McCabe and rejecting the argument that the MMA’s 15% attorney fee limitation applies only to contingent attorney fee contracts); Ind. Patient’s Comp. Fund v. Brown, 949 N.E.2d 822, 824 (Ind.2011) (also applying McCabe). In other words, in cases subject to both the Medical Malpractice Act and the Adult Wrongful Death Statute, attorney fees as an element of damages are to be included in the overall calculation of damages.

In retaining its attorneys to pursue this AWDS claim, the Estate entered into a contingent fee contract. This was a sliding scale fee arrangement of the type expressly approved by this Court in In the Matter of Stephens, 867 N.E.2d 148, 155-56 (Ind.2007). In this case, however, with respect to the Estate’s claim for the attorney fee component of the Estate’s total damage claim under the AWDS, the Estate did not request payment of its full contingent attorney fee obligation, but rather only a portion thereof — $50,440, based on an hourly rate and the number of attorney hours expended in representing the Estate in the wrongful death medical malpractice action. The Estate explains that this reduced claim for AWDS attorney fees is guided by federal and state case law. See Grabach v. Evans, 196 F.Supp.2d 746, 749-750 (N.D.Ind.2002); Shepard v. Schurz Communications, Inc., 847 N.E.2d 219, 226 (Ind.Ct.App.2006), trans. not sought; and Waxman Indus., Inc. v. Trustco Dev. Co., 455 N.E.2d 376

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Related

McCabe v. Commissioner, Indiana Department of Insurance
949 N.E.2d 816 (Indiana Supreme Court, 2011)
Indiana Patient's Compensation Fund v. Brown
949 N.E.2d 822 (Indiana Supreme Court, 2011)
Hematology-Oncology of Indiana, P.C. v. Fruits
950 N.E.2d 294 (Indiana Supreme Court, 2011)
Atterholt v. Herbst
907 N.E.2d 528 (Indiana Supreme Court, 2009)
Atterholt v. Herbst
902 N.E.2d 220 (Indiana Supreme Court, 2009)
In Re Stephens
867 N.E.2d 148 (Indiana Supreme Court, 2007)
Shepard v. Schurz Communications, Inc.
847 N.E.2d 219 (Indiana Court of Appeals, 2006)
Waxman Industries, Inc. v. Trustco Development Co.
455 N.E.2d 376 (Indiana Court of Appeals, 1983)
Grabach v. Evans
196 F. Supp. 2d 746 (N.D. Indiana, 2002)

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Bluebook (online)
17 N.E.3d 255, 2014 Ind. LEXIS 653, 2014 WL 4212690, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indiana-patients-compensation-fund-v-judy-holcomb-personal-ind-2014.