Rose v. Associated Anesthesiologists

501 F.2d 806, 163 U.S. App. D.C. 246
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 25, 1974
DocketNos. 72-1056, 72-1063, 72-1910, 72-1911
StatusPublished
Cited by29 cases

This text of 501 F.2d 806 (Rose v. Associated Anesthesiologists) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rose v. Associated Anesthesiologists, 501 F.2d 806, 163 U.S. App. D.C. 246 (D.C. Cir. 1974).

Opinion

LEVENTHAL, Circuit Judge:

This is a medical malpractice action which was brought by plaintiffs, an infant and his father, against three defendant entities: Dr. Hakim, an ear, nose and throat surgeon; a number of physicians in partnership as anesthesiologists (Associated Anesthesiologists); and the Washington Hospital Center (Hospital).

The grisly facts are set forth in the opinion of the District Court filed November 10, 1971.1 It suffices here to say that a simple operation upon a small boy resulted in severe permanent brain damage. He must live the rest of his life — presumptively, until 2027, for his life expectancy has not been shortened —with cortical blindness; an affected sense of touch precluding use of the Braille system; functional accomplishments in both upper and lower extremities of a mere infant; a mind that functions well and must learn through listening ; and total dependence on others.

Fearful of what might result if the jury found against them, the surgeon, who paid $95,000, and the partnership, which paid $175,000,2 entered into settlements. These were approved by the trial court, at the request of plaintiffs and the settling defendants, but without the consent of the Hospital.

The case proceeded against the Hospital and resulted in jury verdicts awarding the infant $265,000 and the father $29,777.25. At the same time the court, without a jury, tried the cross-claims of the settling defendants against the Hospital for indemnification or contribution.3 The jury was not informed of the fact or amount of the settlements, and was excused whenever evidence related solely to the cross-claims. On the cross-claims the court found that the brain damage was proximately caused by the negligence of the Hospital’s servants and defective equipment in its intensive care unit. The court found that the surgeon and firm were not negligent and did not contribute to the brain damage. These findings are not clearly erroneous and are accepted on appeal.

The issues before us relate to the amounts that may be recovered from the Hospital by plaintiffs and by settling defendants on the cross-claims.

1. Hospital’s right to a Snowden credit that takes into account the settlements with the other (now-liable) defendants

On November 17, 1971, the District Court denied the Hospital’s claim for a credit on the verdict because of the amounts received by plaintiffs in the settlements with persons held not to be tortfeasors. It viewed those payments by the settling defendants, as in legal effect, from collateral sources. That theory was rejected by this court on December 10, 1971, in Snowden v. D. C. Transit System, 147 U.S.App.D.C. 204, 454 F.2d 1047 (1971). Accordingly, the record was remanded to the District [248]*248Court for reconsideration. On July 24, 1972, the District Court held that Snow-den required the court to credit in full the amounts received in settlement. This operated to cancel any liability of the Hospital to the father, and to reduce its liability to the infant to $25,000.4

The District Court was correct in holding that our Snowden opinion rejects the “collateral source” or “gratuity” theory and requires that the Hospital receive a credit against the verdict that takes into account the amounts received in settlement.

Plaintiffs urge on appeal that this result is not correct since on the facts there was not a single injury but multiple injuries, separate and independent, and that the amounts received in settlement were not for the same injury as those covered by the verdict. We think the District Court was correct in viewing the case as presented as being in the large a case involving a single injury. The court instructed the jury on a one-injury theory (J.A. 50-51), and its verdict must be taken to reflect its valuation of the damage to the plaintiffs. Hence a Snowden credit must be allowed.

2. The plaintiff was entitled to limit the amount of the Snowden credit so as not to relieve the negligent Hospital of its equitable pro rata share of the verdict liability

However, we agree with plaintiffs in their alternative contention that the Hospital was not entitled to a Snow-den credit in an amount exceeding the pro rata share of the verdict ascribable to the settling defendants, in this case two-thirds of the amount of the verdict.5

The District Court recognized that a credit exceeding a pro rata share was inequitable. If all the defendants had been negligent, the Hospital would have been entitled only to a pro rata reduction in the verdict (in the amount of $196,518.16) and to be obligated to pay one-third of the verdicts — to pay $9,925.75 to the father, and $88,333 to the son. Martello v. Hawley, 112 U.S.App.D.C. 129, 300 F.2d 721 (1962). Yet here, where the Hospital was solely negligent, it was held entitled to a greater credit, of the full amounts paid, leaving it without any liability to the father and a liability of only $25,000 to the son.

The District Court acknowledged that the judgment would leave the Hospital “enriched”, but said that this was mandated, that “the rule in Snowden as applied here is a hard rule.”

We think the District Court failed to heed the principle of justice, of avoiding unjust enrichment, which has been a cornerstone of all our opinions in this field of jurisprudence, from George’s Radio v. Capital Transit Co., 75 U.S.App.D.C. 187, 189, 126 F.2d 219, 221 (1942), where the court evolved a judicial rule of contribution among tortfeasors,6 to Snowden itself.

The persistence of the theme of justice and avoidance of unjust enrichment did not disappear merely because the court has undertaken, in then Judge Rutledge’s words, “to blend the themes of [249]*249compromise and contribution, maintaining the essential integrity of each as far as possible.” McKenna v. Austin, 77 U.S.App.D.C. 228, 134 F.2d 659 (1943).

It was this blend which accounted for the credit formula of Martello v. Hawley, supra. Judge Bastían considered the pro rata credit rule to retain the principle of contribution, that “in justice each tortfeasor should share his part in the burden of making the injured party whole again.” He concluded that there was justice in the credit, although plaintiff’s total recovery would be reduced.

The Martello principle was applied in Brightheart v. McKay, 136 U.S.App.D.C. 400, 420 F.2d 242 (1969), where a verdict for $30,000 was reduced by a 50% credit because of a ($7,000) settlement with a co-defendant. This case was in a sense a forerunner of Snowden because the court, though treating the case as one where the co-defendant was negligent,7 acknowledged that the precise question of his negligence to the passenger had not technically been litigated.

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Bluebook (online)
501 F.2d 806, 163 U.S. App. D.C. 246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rose-v-associated-anesthesiologists-cadc-1974.