North Miami Medical Center v. Prezeau

793 So. 2d 1142, 2001 Fla. App. LEXIS 12878, 2001 WL 1040422
CourtDistrict Court of Appeal of Florida
DecidedSeptember 12, 2001
DocketNo. 3D00-1939
StatusPublished
Cited by2 cases

This text of 793 So. 2d 1142 (North Miami Medical Center v. Prezeau) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North Miami Medical Center v. Prezeau, 793 So. 2d 1142, 2001 Fla. App. LEXIS 12878, 2001 WL 1040422 (Fla. Ct. App. 2001).

Opinion

GODERICH, Judge.

The defendant, North Miami Medical Center d/b/a Parkway Regional Medical Center [Parkway], appeals, and the plaintiff, Marie Kettly Prezeau, as Personal Representative of the Estate of Philip Ricky Michel, a deceased minor, cross-appeals from an amended final judgment. We affirm the appeal but do not reach the merits of the cross-appeal.1

In the underlying action, Prezeau brought suit against Sudha Russell, M.D., and Steven Sheinman, M.D., alleging medical negligence. Prezeau also brought suit against Parkway alleging vicarious liability for the negligent care provided by the emergency room nurses and by Drs. Russell and Sheinman.

After receiving notice of claim, both treating doctors and the claimant agreed to submit to voluntary binding arbitration. This limited the doctors’ liability for non-economic damages to a maximum of $250,000 per incident. § 766.207(7)(b), Fla. Stat. (2000). However, neither Parkway nor the claimant, offered to arbitrate. Instead, Parkway answered the complaint denying liability and asserting several affirmative defenses. Among other defenses, Parkway alleged that it was immune from liability pursuant to the Good Samaritan Statute. § 768.13(2)(b), Fla. Stat. (2000). Parkway also alleged that it was entitled to all the benefits connected with the co-defendant doctors’ agreement to arbitrate, including the statutory limits on damages recoverable by the plaintiff.

Thereafter, Parkway filed a motion to determine the applicability of the statutory cap on damages. Parkway argued that it [1144]*1144was entitled to the benefit of the $250,000 cap on non-economic damages because its liability was vicarious and the defendants upon whom the vicarious liability was based had agreed to arbitrate with the plaintiff. The trial court entered an order rejecting this argument and finding that Parkway, as an allegedly vicariously liable defendant, was entitled to offer to submit to voluntary binding arbitration and take advantage of the benefits of arbitration as the other defendants did, but that having chosen not to make such an offer, Parkway was not entitled to assert the statutory cap.

The case proceeded to trial, and the jury returned a verdict finding Parkway vicariously liable for Dr. Russell’s care and awarding the Estate $86,996.63 in economic damages and awarding Prezeau $4.5 million in non-economic damages for past and future pain and suffering. The trial court denied the defendant’s post-trial motions, including a motion for remittitur. Thereafter, the arbitration panel awarded the decedent $250,000 in non-economic damages. The defendant moved for a setoff of the arbitration award. The trial court granted the setoff and entered an amended final judgment. Parkway appeals, and Prezeau cross-appeals, from the amended final judgment.

First, Parkway contends that the trial court erred by refusing to apply the $250,000 statutory cap on non-economic damages because its vicarious liability stemmed solely from the actions of a tort-feasor that was allowed to assert this cap. We disagree.

Section 766.207(7)(b) provides:

(7) Arbitration pursuant to this section shall preclude recourse to any other remedy by the claimant against any other participating defendant, and shall be undertaken with the understanding that:
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(b) Noneconomic damages shall be limited to a maximum of $250,000 per incident, and shall be calculated on a percentage basis with respect to the capacity to enjoy life.

(emphasis added).

It is apparent from the clear and unambiguous language of the statute that the benefit of the statutory cap on non-economic damages is solely reserved for a defendant who is conceding liability and participating in arbitration. This benefit is part of the statutory scheme to encourage the arbitration of medical negligence claims. In St Mary’s Hospital, Inc. v. Phillipe, 769 So.2d 961 (Fla.2000), the Florida Supreme Court enumerated the benefits commensurate with arbitration for both claimants and defendants:

In our opinion in Echarte, we explained the incentives for claimants to voluntarily submit to such a process, stating:
The claimant benefits from the requirement that a defendant quickly determine the merit of any defenses and the extent of its liability. The claimant also saves the costs of attorney and expert witness fees which would be required to prove liability. Further, a claimant who accepts a defendant’s offer to have damages determined by an arbitration panel receives the additional benefits of: 1) the relaxed evidentiary standard for arbitration proceedings as set out by section 120.58, Florida Statutes (1989); 2) joint and several liability of multiple defendants in arbitration; 3) prompt payment of damages after the determination by the arbitration panel; 4) interest penalties against the defendant for failure to promptly pay the arbitration award; and 5) limited appellate review of the arbitration award [1145]*1145requiring a showing of “manifest injustice.”
618 So.2d at 194. On the other hand, the most significant incentive for defendants to concede liability and submit the issue of damages to arbitration is the $250,000 cap on noneconomic damages. This limitation provides liability insurers with the ability to improve the predictability of the outcome of claims for the purpose of loss planning in risk assessment for premium purposes.
This predictability can be obtained by interpreting section 766.207(7)(b) so that each claimant is fairly and reasonably compensated for his or her pain and suffering. Such an interpretation would provide increased predictability in the outcome of the claims as the insurers would no longer be contending with the possibility of exorbitant noneconomic damage awards but would have a fixed dollar amount ($250,000), which each claimant’s award could not exceed. Moreover, this interpretation does more to promote early resolution of medical negligence claims, as it provides an equitable result which will in turn further encourage claimants to seek resolution through arbitration.

St. Mary’s Hospital, 769 So.2d at 970 (quoting University of Miami v. Echarte, 618 So.2d 189, 194 (Fla.1993)).

In the instant case, Parkway wants to have its proverbial cake and eat it too. Parkway wants to have the benefit of the $250,000 statutory cap on non-economic damages without having the commensurate detriment of having to concede liability. In other words, Parkway would like to proceed to jury trial, all the while denying its vicarious liability, in hopes of a jury finding in its favor, but have the safety net of the statutory cap in case a jury should find it liable. As St. Mary’s Hospital clearly explains this is not the intent of the arbitration statute. The benefit of the statutory cap is only reserved for those defendants who concede liability and submit to arbitration.

Therefore, we conclude that Parkway, as a vicariously liable defendant, could have demanded arbitration and received the commensurate benefit of the non-economic damages statutory cap. However, as Parkway did not demand arbitration, it was not entitled to the benefit of the statutory cap as the trial court properly determined.

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Bluebook (online)
793 So. 2d 1142, 2001 Fla. App. LEXIS 12878, 2001 WL 1040422, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-miami-medical-center-v-prezeau-fladistctapp-2001.