Rachel Kranz v. Steven Schuss, M.D.

146 A.3d 647, 447 N.J. Super. 168
CourtNew Jersey Superior Court Appellate Division
DecidedAugust 31, 2016
DocketA-4918-13T1
StatusPublished
Cited by3 cases

This text of 146 A.3d 647 (Rachel Kranz v. Steven Schuss, M.D.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rachel Kranz v. Steven Schuss, M.D., 146 A.3d 647, 447 N.J. Super. 168 (N.J. Ct. App. 2016).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-4918-13T1

RACHEL KRANZ, a minor by her Guardian ad Litem, SHELLY KRANZ and JONATHAN APPROVED FOR PUBLICATION KRANZ, Individually, August 31, 2016

Plaintiffs-Appellants, APPELLATE DIVISION

v.

STEVEN SCHUSS, M.D., and TEANECK PEDIATRICS, P.A.,

Defendants-Respondents. __________________________________________________

Argued October 26, 2015 – Decided August 31, 2016

Before Judges Messano, Simonelli and Carroll.

On appeal from the Superior Court of New Jersey, Law Division, Bergen County, Docket No. L-2066-12.

Michael B. Zerres argued the cause for appellants (Blume, Donnelly, Fried, Forte, Zerres & Molinari, P.C., attorneys; Mr. Zerres and Robin A. Donato, on the briefs).

Thomas J. Pyle, Jr., argued the cause for respondents (Post, Polak, Goodsell, MacNeill & Strauchler, P.A., attorneys; Jay Scott MacNeill, of counsel; Mr. Pyle, on the brief).

The opinion of the court was delivered by

MESSANO, P.J.A.D. "The Comparative Negligence Act and the Joint Tortfeasors

Contribution Law comprise the statutory framework for the

allocation of fault when multiple parties are alleged to have

contributed to the plaintiff's harm." Town of Kearny v. Brandt,

214 N.J. 76, 96 (2013). In Young v. Latta, 123 N.J. 584, 586

(1991), the Court held that, "in every case in which there are

multiple defendants, whether or not a cross-claim for

contribution has been filed," a non-settling tortfeasor is

entitled to a credit reducing any judgment by the degree of

fault allocated by the jury to a settling tortfeasor. The Court

cited extensively to its seminal case of Judson v. Peoples Bank

& Trust Company of Westfield, 17 N.J. 67, 92-94 (1954), aff'd on

reconsideration, 25 N.J. 17, 34 (1957), and Judson's historical

analysis of the Joint Tortfeasors Contribution Law (the JTCL),

N.J.S.A. 2A:53A-1 to -5. Id. at 590-91. Justice Clifford

wrote:

Judson . . . provides two principles important to our implementation of the [JTCL]: that a settling tortfeasor shall have no further liability to any party beyond that provided in the terms of settlement, and that a non-settling defendant's right to a credit reflecting the settler's fair share of the amount of the verdict—regardless of the actual settlement —represents the judicial implementation of the statutory right to contribution.

[Id. at 591 (emphasis added).]

2 A-4918-13T1 After Judson, the "Court [] held that a non-settling defendant

does not get an increased credit if a settling tortfeasor pays

more than his or her pro rata share of the liability." Ibid.

(citing Theobald v. Angelos, 44 N.J. 228 (1965)).

The subsequent passage of the Comparative Negligence Act

(CNA), N.J.S.A. 2A:15-5.1 to -5.8, did not "sap[] the vitality

of those principles." Id. at 592. "Pursuant to the [CNA], the

finder of fact must make an allocation of causative fault

between settling and non-settling defendants so that the court

can calculate the amount of the credit due [to] the non-settler

even though the non-settler cannot pursue a claim for

contribution against the settler." Ibid. As Judge Pressler

explained nearly two decades ago,

the effect of the [CNA] was to replace the former pro rata liability of joint tortfeasors under the [JTCL], . . . with the obligation of each tortfeasor to pay damages in accordance with its own adjudicated percentage of fault. A necessary corollary of this scheme is to deny to comparative- negligence joint tortfeasors a reduction of their liability based on a plaintiff's pretrial settlement with a defendant who is never found to be liable at all. Thus, under the comparative-negligence scheme, a plaintiff is entitled to retain the proceeds of the pretrial settlement as well as the full jury verdict as allocated among all other defendants.

. . . .

3 A-4918-13T1 [U]nless the settling defendant's percentage of liability is adjudicated at trial, there is simply no right in the adjudicated tortfeasors to a reduction of their own separately-allocated responsibility for the verdict.

[Johnson v. Am. Homestead Mortg. Corp., 306 N.J. Super. 429, 436-37 (App. Div. 1997).]

In this appeal, we are called upon to consider whether the

motion judge correctly decided that defendants were entitled to

a pro tanto credit for the amount plaintiffs obtained by way of

an out-of-state settlement with tortfeasors who were never

defendants in this litigation and could not have been sued in

the courts of this State because New Jersey lacked personal

jurisdiction. The issue is one of first impression. We

conclude that the principles outlined above apply and therefore

reverse.

I.

The record is undisputed. Rachel Kranz was born in New

York in December 2003 and came under the medical care of a

series of doctors in New York. In January 2005, Rachel and her

family moved to New Jersey, where she began receiving pediatric

care from defendant, Steven Schuss, M.D., and his affiliated

practice group, Teaneck Pediatrics (collectively, defendants).1

1 To avoid confusion, we sometimes use the first names of the plaintiffs. We intend no disrespect by this informality.

4 A-4918-13T1 At Rachel's medical check-up in January 2006, Dr. Schuss

suspected that she suffered from left hip dysplasia. These

suspicions were confirmed, and Rachel underwent open reduction

surgery and a second follow-up surgery to correct the condition.

On July 30, 2007, with her mother Shelley acting as

guardian ad litem (GAL), Rachel commenced suit in New York

alleging medical malpractice against the hospital of her birth

and several doctors (the New York defendants) who had attended

to her prior to the family's move to New Jersey, claiming

damages resulting from the failure to diagnose the dysplasia.

On April 7, 2011, the New York court entered an order approving

a structured settlement in the amount of $2 million (the New

York settlement).

On March 12, 2012, once again with her mother acting as

GAL, and now joined by her father, Jonathan, as a plaintiff on

his own behalf, Rachel filed a complaint in New Jersey alleging

medical negligence by defendants in their failure to timely

diagnose and treat Rachel's dysplasia. It suffices to say that

plaintiffs' experts opined that defendants' failure to diagnose

the dysplasia earlier was a breach of the professional standard

of care and likely increased the probability that Rachel would

require open reduction surgery to address her condition and that

she would likely develop arthritis in later life. At least one

5 A-4918-13T1 of plaintiffs' experts opined in his report that certain

findings, in particular the asymmetry of Rachel's gait and

rotation of her hips, most likely would have been present at the

age of six months, i.e., before she came under defendants' care.

Defendants' experts, to the contrary, essentially concluded

there was no breach of professional standards because Rachel's

dysplasia was not clinically detectable until age two, and Dr.

Schuss properly and timely diagnosed the condition and

recommended further treatment as appropriate.

After discovery ended in December 2013, defendants sought

an order providing them with a credit of $2 million against any

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