Stinnett v. Tam

198 Cal. App. 4th 1412, 130 Cal. Rptr. 3d 732, 2011 Cal. App. LEXIS 1153
CourtCalifornia Court of Appeal
DecidedSeptember 1, 2011
DocketNo. F057784
StatusPublished
Cited by11 cases

This text of 198 Cal. App. 4th 1412 (Stinnett v. Tam) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stinnett v. Tam, 198 Cal. App. 4th 1412, 130 Cal. Rptr. 3d 732, 2011 Cal. App. LEXIS 1153 (Cal. Ct. App. 2011).

Opinions

[1417]*1417Opinion

GOMES, J.

In 1975, the Governor convened the California Legislature in an extraordinary session to consider measures aimed at remedying what he described as “serious problems that had arisen throughout the state as a result of a rapid increase in medical malpractice insurance premiums.” (American Bank & Trust Co. v. Community Hospital (1984) 36 Cal.3d 359, 363 [204 Cal.Rptr. 671, 683 P.2d 670] (American Bank).) As a result, the Legislature enacted the Medical Injury Compensation Reform Act of 1975 (MICRA) (Stats. 1975, 2d Ex. Sess. 1975-1976, chs. 1 & 2, pp. 3949-4007), which our Supreme Court characterized as “a lengthy statute which attacked the problem on several fronts.” (American Bank, supra, 36 Cal.3d at p. 363.) “In broad outline, the act (1) attempted to reduce the incidence and severity of medical malpractice injuries by strengthening governmental oversight of the education, licensing and discipline of physicians and health care providers, (2) sought to curtail unwarranted insurance premium increases by authorizing alternative insurance coverage programs and by establishing new procedures to review substantial rate increases, and (3) attempted to reduce the cost and increase the efficiency of medical malpractice litigation by revising a number of legal rules applicable to such litigation.” (Id. at pp. 363-364.)

This case involves a provision of MICRA which limits the recovery of so-called “noneconomic” damages to a maximum of $250,000 in any action against a health care provider based on professional negligence. The statute, Civil Code section 3333.2,1 states in pertinent part: “(a) In any action for injury against a health care provider based on professional negligence, the injured plaintiff shall be entitled to recover noneconomic losses to compensate for pain, suffering, inconvenience, physical impairment, disfigurement and other nonpecuniary damage, [f] (b) In no action shall the amount of damages for noneconomic losses exceed two hundred fifty thousand dollars ($250,000).”

Appellant Holly Stinnett sued, among others, respondents Tony Tam, M.D., and Modesto Surgical Associates for the wrongfiil death of her husband, Stanley Stinnett, due to professional negligence. The trial court reduced the jury’s $6 million noneconomic damage award to Stinnett to $250,000 pursuant to a defense motion made under section 3333.2. On appeal, Stinnett contends the reduction of her noneconomic damages constituted (1) a violation of her right to equal protection of the laws guaranteed by the Fourteenth Amendment to the United States Constitution and by article I, section 7, subdivision (a) of the California Constitution and (2) a violation of her right to a jury trial under article I, section 16 of the California Constitution. [1418]*1418As we shall explain, we find these contentions to be without merit and therefore will affirm the judgment.

FACTUAL AND PROCEDURAL HISTORIES

Stinnett brought this action for professional negligence against defendants Memorial Medical Center of Modesto, Memorial Hospital Foundation of Stanislaus County, Modesto Surgical Associates (Modesto Surgical) and Dr. Tony Tam. The complaint alleged that Stinnett’s husband, Stanley Stinnett, died on January 11, 2006, as a result of defendants’ negligence, carelessness and otherwise wrongful medical care, treatment and diagnosis. Before trial, defendant Memorial Medical Center of Modesto settled with Stinnett for $175,000. At trial, the jury was instructed that Dr. Tam was a partner of Modesto Surgical Associates, and if the jury found Dr. Tam was acting within the scope of his agency when the incident occurred, Modesto Surgical was responsible for any harm caused by Dr. Tam’s negligence.

An 11-day jury trial resulted in a special verdict finding Dr. Tam and Modesto Surgical “negligent in the diagnosis and/or treatment of Stanley Stinnett” and that their negligence was a substantial factor in causing his death. The jury awarded Stinnett $148,302 in past economic loss, $1,242,093 as the present cash value of her future economic losses, and $6 million in “[n]on-economic damages for the loss of love, companionship, comfort, care, assistance, protection, affection, society and moral support of decedent Stanley Stinnett.”

After the jury verdict, Dr. Tam and Modesto Surgical, by and through their professional liability carrier, paid Stinnett $1,510,036.27 in partial satisfaction of the jury’s award of economic damages, with the final amount of economic damages to be adjusted later after determination of the credit/setoff resulting from Memorial Medical Center’s pretrial settlement.

Dr. Tam and Modesto Surgical moved to reduce the amount of noneconomic damages to $250,000 pursuant to section 3333.2, and apply the payments previously made to Stinnett as an offset. Stinnett opposed the motion, arguing section 3333.2 is unconstitutional because it conflicts with the constitutional guarantee of equal protection under both the California and federal Constitutions. Specifically, Stinnett argued that while the California Supreme Court upheld the constitutionality of the MICRA cap on noneconomic damages in Fein v. Permanente Medical Group (1985) 38 Cal.3d 137 [211 Cal.Rptr. 368, 695 P.2d 665] (Fein), the cap is now unconstitutional since the “classification incorporated in the MICRA cap has lost its rationality,” as the medical malpractice insurance crisis that precipitated the adoption of the MICRA cap in 1975 “has long since ceased to exist,” and the cap operates more harshly than in 1975 since it does not adjust for inflation.

[1419]*1419In support of her argument, Stinnett submitted a declaration from Missouri lawyer Jay Angoff, who has “been particularly heavily involved with the medical malpractice insurance industry” and co-authored Proposition 103, the insurance reform initiative California voters enacted in 1988. According to Angoff: (1) while courts commenting on MICRA in the past had noted when the statute was enacted malpractice insurance rates were increasing, few firms were writing malpractice coverage, malpractice insurance claims payments were increasing and malpractice insurers were losing money, in 2008 malpractice insurance rates were declining, dozens of traditional and nontraditional malpractice insurers were writing coverage, new carriers were entering the industry, claims payments were decreasing and malpractice insurance profits had been excessive for at least a decade; (2) while efiminating the MICRA cap on noneconomic damages would increase malpractice claims costs, “eliminating the cap should not have a material effect on rates, since California malpractice insurers would still have been able to earn at least an adequate profit for the last ten years had the cap not existed, and would continue to be able to earn such a profit if the cap were eliminated today”; and (3) data from states that have not limited noneconomic damages indicate that malpractice insurers have been able to prosper in such states. Stinnett also submitted the declaration of economist Phillip H. Allman, who stated that inflation had eroded the value of $250,000 in 1975 to a present value in 2008 of approximately $58,857. In their reply, Dr. Tam and Modesto Surgical argued section 3333.2 is constitutional and filed objections to Angoff’s declaration.

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Bluebook (online)
198 Cal. App. 4th 1412, 130 Cal. Rptr. 3d 732, 2011 Cal. App. LEXIS 1153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stinnett-v-tam-calctapp-2011.