In the United States Court of Federal Claims OFFICE OF SPECIAL MASTERS No. 09-489V Filed: November 6, 2017
* * * * * * * * * * * * * * * DULCE AND SEAN REILLY, parents * Special Master Sanders and natural guardians of E.R., a minor, * * Decision on Proffer; Damages; Diphtheria- * Tetanus-Acellular-Pertussis (“DTaP”) Petitioners, * Vaccine; Infantile Spasms. * v. * * SECRETARY OF HEALTH * AND HUMAN SERVICES, * * * Respondent. * * * * * * * * * * * * * * * *
Edward M. Kraus, Law Offices of Chicago Kent, Chicago, IL, for Petitioners. Ryan D. Pyles, United States Department of Justice, Washington, DC, for Respondent.
DECISION AWARDING DAMAGES1
On July 27, 2009, Dulce and Sean Reilly (“Petitioners”) filed a petition on behalf of their minor child, E.R., pursuant to the National Vaccine Injury Compensation Program.2 42 U.S.C. §§ 300aa-10 to -34 (2012). Petitioners allege that the diphtheria-tetanus-acellular-pertussis (“DTaP”) vaccine administered on June 21, 2007 caused E.R. to suffer from a seizure disorder. Ruling Entitlement (May 31, 2016) at 1-2, ECF No. 107.
1 This decision shall be posted on the United States Court of Federal Claims’ website, in accordance with the E-Government Act of 2002, 44 U.S.C. § 3501 note (2012) (Federal Management and Promotion of Electronic Government Services). In accordance with Vaccine Rule 18(b), a party has 14 days to identify and move to delete medical or other information that satisfies the criteria in § 300aa-12(d)(4)(B). Further, consistent with the rule requirement, a motion for redaction must include a proposed redacted decision. If, upon review, the undersigned agrees that the identified material fits within the requirements of that provision, such material will be deleted from public access. 2 The Program comprises Part 2 of the National Childhood Vaccine Injury Act of 1986, Pub. L. No. 99-660, 100 Stat. 3758, codified as amended, 42 U.S.C. §§ 300aa-10 to -34 (2012) [hereinafter “Vaccine Act” or “the Act”]. Hereinafter, individual section references will be to 42 U.S.C. § 300aa of the Act. Special Master Hamilton-Fieldman issued a Ruling on Entitlement on May 31, 2016. Id. She held that Petitioners’ theory and medical records satisfied the three-prong test in Althen v. Secretary of Health and Human Services, 418 F.2d 1274, 1278 (Fed. Cir. 2005), and Petitioners were therefore entitled to compensation. Id. at 19-22.
On June 22, 2016, Special Master Hamilton-Fieldman issued a Damages Order encouraging the parties to identify and provide information that will be “necessary to assess the appropriate amount of compensation to be awarded in this case.” Dam. Order at 7, ECF No. 111. The case was reassigned to the undersigned on January 10, 2017. Not. Reassignment, ECF No. 115.
Respondent filed a Proffer on Award of Compensation (“Proffer”) on November 2, 2017. Proffer, ECF No. 126. Based on the record as a whole, the undersigned finds that Petitioners are entitled to an award as stated in the Proffer.
Pursuant to the terms stated in the Proffer, attached as Appendix A, the undersigned awards Petitioners:
A. A lump sum payment of $1,268,787.00, (representing compensation for lost future earnings ($750,984.00), pain and suffering ($250,000.00), and life care expenses for Year One ($267,803.00)), in the form of a check payable to [P]etitioners as guardians/conservators of the estate of E.R., for the benefit of E.R.; and
B. A lump sum payment of $130,000.00, representing compensation for past unreimbursable expenses, [in the form of a check] payable to Dulce Reilly and Sean Reilly, [P]etitioners; and
C. An amount sufficient to purchase an annuity contract, subject to the conditions described [in Section II.C.], that will provide payments for the life care items contained in the life care plan, as illustrated by the chart [attached to the Proffer], and paid to the life insurance company from which the annuity will be purchased.
Proffer 3-5.
In the absence of a motion for review filed pursuant to RCFC Appendix B, the clerk of the court SHALL ENTER JUDGMENT herewith.3
IT IS SO ORDERED.
3 Pursuant to Vaccine Rule 11(a), entry of judgment is expedited by the parties’ joint filing of notice renouncing the right to seek review.
2 s/Herbrina D. Sanders Herbrina D. Sanders Special Master
3 IN THE UNITED STATES COURT OF FEDERAL CLAIMS OFFICE OF SPECIAL MASTERS
DULCE and SEAN REILLY, parents and natural guardians of E.R., a minor,
Petitioners, No. 09-489V v. Special Master Herbrina Sanders ECF SECRETARY OF HEALTH AND HUMAN SERVICES,
Respondent.
RESPONDENT’S PROFFER ON AWARD OF COMPENSATION
Respondent submits the following recommendations regarding items of compensation to
be awarded under the Vaccine Act.
I. Items of Compensation
A. Life Care Items
The parties engaged life care planners Tresa Johnson, RN, BSN, CNLCP, and M.
Virginia Walton, RN, MSN, FNP, CNLCP, to provide an estimation of E.R.’s future
vaccine-injury related needs, and the parties’ planners came to a joint consensus regarding
appropriate items of care. All items of compensation identified by the parties’ joint life care plan
dated October 25, 2017, are supported by the evidence, and are illustrated by the chart entitled
Summary of Life Care Items, attached hereto as Tab A. Respondent proffers that E.R. should be
awarded all items of compensation set forth in the joint life care plan and illustrated by the chart
attached at Tab A. Petitioners agree.
1 B. Lost Earnings
The parties agree that based upon the evidence of record, E.R. will never be gainfully
employed. Therefore, respondent proffers that E.R. should be awarded full lost earnings as
provided under the Vaccine Act, 42 U.S.C. § 300aa-15(a)(3)(B). Respondent proffers that the
appropriate award for E.R.’s lost future earnings is $750,984.00 at net present value. Petitioners
agree.
C. Pain and Suffering
Respondent proffers that E.R. should be awarded $250,000.00 for actual pain, suffering,
and emotional distress, consistent with the statutory cap on awards for this element of damages.
See 42 U.S.C. § 300aa-15(a)(4). Petitioners agree.
D. Past Unreimbursable Expenses
Evidence supplied by petitioners document their expenditure of past unreimbursable
expenses related to E.R.’s vaccine-related injury. Respondent proffers that petitioners should be
awarded past unreimbursable expenses in the amount of $130,000.00. Petitioners agree.
E. Medicaid Lien
To the best of respondent’s knowledge and upon the representation of petitioners, E.R.
has never received Medicaid benefits. Accordingly, there is no Medicaid lien.
F. Attorneys’ Fees and Costs
This proffer does not address final attorneys’ fees and costs. Petitioners are entitled to
reasonable attorneys’ fees and costs, to be determined at a later date upon petitioners filing
substantiating documentation.
2 II. Form of the Award
The parties recommend that the compensation provided to E.R. should be made through a
combination of one-time lump sum payments and future annuity payments as described below,
and request that the Special Master’s decision and the Court’s judgment award the following for
all compensation1 available under 42 U.S.C. § 300aa-15(a).
Respondent proffers and petitioners agree that an award of compensation include the
following elements:
A. A lump sum payment of $1,268,787.00, (representing compensation for lost future
earnings ($750,984.00), pain and suffering ($250,000.00), and life care expenses for Year One
($267,803.00)), in the form of a check payable to petitioners as guardians/conservators of the
estate of E.R., for the benefit of E.R. No payment shall be made until petitioners provide
respondent with documentation establishing that they have been appointed as the
guardians/conservators of the estate of E.R.;
B. A lump sum payment of $130,000.00, representing compensation for past
unreimbursable expenses, payable to Dulce Reilly and Sean Reilly, petitioners; and
C. An amount sufficient to purchase an annuity contract,2 subject to the conditions
described below, that will provide payments for the life care items contained in the life care plan,
as illustrated by the chart at Tab A, attached hereto, and paid to the life insurance company3 from
1 Should E.R. die prior to entry of judgment, respondent would oppose any award for future medical expenses, future lost earnings and future projected pain and suffering and the parties reserve the right to move the Court for appropriate relief. 2 To satisfy the conditions set forth herein, in respondent’s discretion, respondent may purchase one or more annuity contracts from one or more life insurance companies. 3 The Life Insurance Company must have a minimum of $250,000,000 capital and surplus, exclusive of any mandatory security valuation reserve. The Life Insurance Company must have one of the following ratings from two of the following rating organizations:
3 which the annuity will be purchased.4 Compensation for Year Two (beginning on the first
anniversary of the date of judgment) and all subsequent years shall be provided through
respondent’s purchase of an annuity, which annuity shall make payments directly to petitioners
as guardian/conservators of the estate of E.R., only so long as E.R. is alive at the time a
particular payment is due. At the Secretary’s sole discretion, the periodic payments may be
provided to petitioners in monthly, quarterly, annual or other installments. Annual totals set
forth in the far-right column of the chart at Tab A describe only the total yearly sum to be paid
for the benefit of E.R. and do not require that the payment be made in one annual installment.
1. Growth Rate
Respondent proffers that a four percent (4%) growth rate should be applied to all life care
items. Thus, the benefits illustrated in the chart at Tab A that are to be paid through annuity
payments should grow at four percent (4%) compounded annually from the date of judgment.
2. Life-Contingent Annuity
Petitioners as guardians/conservators of the estate of E.R. will continue to receive the
annuity payments from the Life Insurance Company only so long as E.R. is alive at the time that
a. A.M. Best Company: A++, A+, A+g, A+p, A+r, or A+s;
b. Moody's Investor Service Claims Paying Rating: Aa3, Aa2, Aa1, or Aaa;
c. Standard and Poor’s Corporation Insurer Claims-Paying Ability Rating: AA-, AA, AA+, or AAA;
d. Fitch Credit Rating Company, Insurance Company Claims Paying Ability Rating: AA-, AA, AA+, or AAA. 4 Petitioners authorize the disclosure of certain documents filed by the petitioners in this case consistent with the Privacy Act and the routine uses described in the National Vaccine Injury Compensation Program System of Records, No. 09-15-0056.
4 a particular payment is due. E.R.’s estate shall provide written notice to the Secretary of Health
and Human Services and the Life Insurance Company within twenty (20) days of E.R.’s death.
3. Guardianship
No payments shall be made until petitioners provide respondent with documentation
establishing that they have been appointed as the guardians/conservators of E.R.’s estate. If
petitioners are not authorized by a court of competent jurisdiction to serve as
guardians/conservators of the estate of E.R., any such payment shall be made to the party or
parties appointed by a court of competent jurisdiction to serve as guardian(s)/conservator(s) of
the estate of E.R. upon submission of written documentation of such appointment to the
Secretary.
III. Summary of Recommended Payments Following Judgment
A. Lump Sum paid to petitioners as guardians/conservators of E.R.’s estate, for the benefit of E.R.: $ 1,268,787.00
B. Lump sum paid to petitioners: $ 130,000.00
C. An amount sufficient to purchase the annuity contract described above in section II. C.
D. Reasonable final attorneys’ fees and litigation costs: TBD
Respectfully submitted,
CHAD A. READLER Acting Assistant Attorney General
C. SALVATORE D’ALESSIO Acting Director Torts Branch, Civil Division
CATHARINE E. REEVES Deputy Director Torts Branch, Civil Division
5 HEATHER L. PEARLMAN Assistant Director Torts Branch, Civil Division
s/ RYAN D. PYLES RYAN D. PYLES Trial Attorney Torts Branch, Civil Division U.S. Department of Justice P.O. Box 146 Benjamin Franklin Station Washington, D.C. 20044-0146 Tel: (202) 616-9847
DATED: November 2, 2017
6 TAB A
Pet. Ethan Reilly D.O.B. 12/15/2006
DATE: 10/25/17 TIME: 10:01 AM
SUMMARY OF LIFE CARE ITEMS - JOINT LIFE CARE PLAN dated October 25, 2017
ITEM OF CARE Insurance Medical Ancilliary Medications Supplies Home Transportation Home TOTALS TOTALS OF Care Services Services Modifications of Items 4.0% ITEMS with a 4.0% & APPLYING Growth Rate THE GROWTH GROWTH RATE 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% RATE
AGE YEAR
11 2017 6,000.00 0.00 7,778.00 3,591.50 9,941.97 137,760.00 2,731.04 100,000.00 267,803 267,803 12 2018 6,000.00 0.00 9,478.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 162,761 169,271 13 2019 6,000.00 0.00 9,478.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 162,761 176,042 14 2020 6,000.00 0.00 9,478.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 162,761 183,084 15 2021 6,000.00 0.00 9,478.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 162,761 190,407 16 2022 6,000.00 0.00 91,750.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 245,033 298,120 17 2023 6,000.00 0.00 91,750.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 245,033 310,045 18 2024 6,000.00 0.00 91,750.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 245,033 322,447 19 2025 6,000.00 0.00 91,750.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 245,033 335,344 20 2026 6,000.00 0.00 91,750.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 245,033 348,758 21 2027 6,000.00 0.00 91,750.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 245,033 362,709 22 2028 6,000.00 0.00 91,750.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 245,033 377,217 23 2029 9,189.76 0.00 11,888.00 3,591.50 3,200.38 144,000.00 119.84 0.00 171,989 275,361 24 2030 9,189.76 0.00 11,888.00 3,591.50 3,200.38 144,000.00 119.84 0.00 171,989 286,375 25 2031 9,189.76 0.00 8,290.00 3,591.50 3,200.38 144,000.00 119.84 0.00 168,391 291,600 26 2032 13,310.76 424.40 8,290.00 3,338.01 3,200.38 144,000.00 119.84 0.00 172,683 310,993 27 2033 13,456.44 424.40 8,290.00 3,338.01 3,200.38 144,000.00 119.84 0.00 172,829 323,706 28 2034 13,677.48 424.40 8,290.00 3,338.01 3,200.38 144,000.00 119.84 0.00 173,050 337,084 29 2035 13,863.84 424.40 8,290.00 3,338.01 3,200.38 144,000.00 119.84 0.00 173,236 350,945 30 2036 9,577.68 424.40 8,290.00 2,794.01 3,200.38 144,000.00 119.84 0.00 168,406 354,807 31 2037 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 366,545 32 2038 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 381,207 33 2039 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 396,455 34 2040 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 412,313 35 2041 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 428,806 36 2042 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 445,958 37 2043 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 463,796 38 2044 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 482,348 39 2045 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 501,642 40 2046 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 521,708
PAGE 1 TAB A
SUMMARY OF LIFE CARE ITEMS - JOINT LIFE CARE PLAN dated October 25, 2017
ITEM OF CARE Insurance Medical Ancilliary Medications Supplies Home Transportation Home TOTALS TOTALS OF Care Services Services Modifications of Items 4.0% ITEMS with a 4.0% & APPLYING Growth Rate THE GROWTH GROWTH RATE 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% RATE
41 2047 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 542,576 42 2048 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 564,279 43 2049 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 586,850 44 2050 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 610,324 45 2051 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 634,737 46 2052 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 660,127 47 2053 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 686,532 48 2054 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 713,993 49 2055 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 742,553 50 2056 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 772,255 51 2057 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 803,145 52 2058 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 835,271 53 2059 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 868,682 54 2060 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 903,429 55 2061 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 939,566 56 2062 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 977,149 57 2063 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 1,016,235 58 2064 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 1,056,884 59 2065 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 1,099,159 60 2066 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 1,143,126 61 2067 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 1,188,851 62 2068 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 1,236,405 63 2069 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 1,285,861 64 2070 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 1,337,296 65 2071 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,354,188 66 2072 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,408,355 67 2073 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,464,690 68 2074 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,523,277 69 2075 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,584,208 70 2076 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,647,577
PAGE 2 TAB A
SUMMARY OF LIFE CARE ITEMS - JOINT LIFE CARE PLAN dated October 25, 2017
ITEM OF CARE Insurance Medical Ancilliary Medications Supplies Home Transportation Home TOTALS TOTALS OF Care Services Services Modifications of Items 4.0% ITEMS with a 4.0% & APPLYING Growth Rate THE GROWTH GROWTH RATE 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% RATE
71 2077 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,713,480 72 2078 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,782,019 73 2079 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,853,300 74 2080 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,927,432 75 2081 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,004,529 76 2082 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,084,710 77 2083 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,168,099 78 2084 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,254,822 79 2085 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,345,015 80 2086 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,438,816 81 2087 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,536,369 82 2088 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,637,823 83 2089 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,743,336 84 2090 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,853,070 85 2091 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,967,193 86 2092 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 3,085,880 87 2093 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 3,209,315
608,132 26,313 1,170,146 229,277 253,171 11,013,120 40,562 100,000 13,440,721 81,065,682
4.52% 0.20% 8.71% 1.71% 1.88% 81.94% 0.30% 0.74% 100.00%
This Report was generated using Sequoia Settlement Services, LLC Software (c) 1990
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