Thomas v. Insurance Corp. of America

633 So. 2d 136, 1994 La. LEXIS 549, 1994 WL 62774
CourtSupreme Court of Louisiana
DecidedFebruary 28, 1994
Docket93-C-1856
StatusPublished
Cited by16 cases

This text of 633 So. 2d 136 (Thomas v. Insurance Corp. of America) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas v. Insurance Corp. of America, 633 So. 2d 136, 1994 La. LEXIS 549, 1994 WL 62774 (La. 1994).

Opinion

633 So.2d 136 (1994)

Alfred E. THOMAS, Sr.
v.
INSURANCE CORPORATION OF AMERICA, et al.

No. 93-C-1856.

Supreme Court of Louisiana.

February 28, 1994.

*137 Williams P. Crews, Jr., Robert S. Wright, Natchitoches, for applicant.

Jerald L. Perlman, Shreveport, for respondent.

CALOGERO, Chief Justice.[*]

In this medical malpractice case, we are called upon to decide for the first time how the appropriate statutory provisions regarding Patient Compensation Fund credits affecting the Fund's $400,000 maximum exposure are to be applied when a plaintiff has settled with two or more health care providers. With successive settlements of $100,000 and $40,000 and a gross damage award of $412,500, the district court in this case allowed only a single $100,000 credit while the court of appeal thereafter gave two such credits. For the following reasons, we find that the Patient's Compensation Fund is entitled to two credits, one for $100,000, but the second for only $40,000, the actual amount of that settlement.

In March, 1985, Alfred E. Thomas, Sr. was admitted to the Schumpert Medical Center in Shreveport, Louisiana, under the care of an orthopedic surgeon, Robert E. Holladay, M.D. After a decompressive laminectomy of the back was performed on March 19, 1985, coagulated blood accumulated in the patient's spinal canal. Despite his complaints to the nursing staff of the hospital, which complaints suggested neurological problems, the attending physician was neither notified nor consulted. Furthermore, although Dr. Holladay ordered a CT scan immediately after making rounds on the morning of March 20, 1985, and the scan revealed a hematoma, surgical intervention was not attempted until approximately 1:00 p.m. Subsequently, Thomas has experienced a permanent loss of normal function of both bowel and bladder, and sexual dysfunction.

Contending that the undue delay in recognizing post-operative problems and getting him back to the operating room caused his damages, Thomas filed a request for review with a Medical Review Panel. The panel of three orthopedic surgeons expressed the opinion that, as a medical probability, the patient's damage had occurred before Dr. Holladay first became aware of the problem. Nevertheless, since the panel concluded that the appropriate standard of care required the attending physician to move more quickly in the emergency situation, they found that his conduct, along with that of the medical center, was a "factor of the asserted resultant damages."

After filing suit against the Sisters of Charity of the Incarnate Word, d/b/a Schumpert Medical Center, Dr. Robert E. Holladay, Insurance Corporation of America (Holladay's insurer), and the Commissioner of Insurance in his capacity as Administrator of the Patient's Compensation Fund, Thomas settled his claim against the medical center for $100,000, its liability limit as a qualified health care provider under the Medical Malpractice Act. Subsequently, he compromised his claim against Dr. Holladay and his insurer for $40,000. In the Receipt and Release executed by Thomas on April 24, 1991, the settlement with Dr. Holladay was described as a "compromise of a doubtful and disputed claim and [was] not to be construed as an *138 admission of liability, which [was] expressly denied by Insurance Corporation of America and Robert E. Holladay, IV. M.D."

Thereafter, the matter proceeded to trial by jury against the Louisiana Patient's Compensation Fund on the issue of quantum alone. In accordance with a verdict returned by the jury, judgment was rendered in favor of plaintiff and against the Fund in the amount of $412,500, representing past and future pain, suffering, and mental anguish, subject to a credit of $100,000, together with legal interest thereon from March 11, 1986 until paid. In accordance with the stipulation of the parties, judgment was also rendered in favor of plaintiff for past medical expenses in the amount of $10,610.20, as well as for future medical care and related benefits regarding the injuries sustained by him.

Contesting both the excessiveness of the award and the allowance of only a single $100,000 credit notwithstanding settlements with two health care providers, the Fund appealed the judgment of the trial court after there was denied a Motion For New Trial and Motion for Judgment Notwithstanding The Verdict or Remittitur. Although the Court of Appeal affirmed plaintiff's quantum award, it found that the Fund was entitled to an additional $100,000 credit for plaintiff's $40,000 pretrial settlement with the doctor and his insurer, 621 So.2d 67. (Accordingly, the amount to be paid from the Fund was determined to be $412,500 minus $100,000 minus $100,000, or $212,500.) Plaintiff here seeks review of the Court of Appeal's application of the second $100,000 credit to the advantage of the Patient's Compensation Fund.

Enacted in 1975, Louisiana's Medical Malpractice Act was a legislative response to what was considered a crisis in the delivery of medical services to the people of this state, "ostensibly prompted by the prohibitive costs associated with medical malpractice insurance." Everett v. Goldman, 359 So.2d 1256, 1261 (La.1978). The act provides a scheme for medical malpractice claims against health care providers, qualified in accordance with La.Rev.Stat.Ann. § 40:1299.42(A) (West 1992).[1] Within that scheme, La.Rev.Stat. Ann. § 40:1299.42(B)(1) (West 1992) limits the total amount recoverable for all malpractice claims for injuries or death to a patient to $500,000,[2] and Section 40:1299.42(B)(2) limits the liability of a qualified health care provider for malpractice claims of any one patient to $100,000.[3] If the amount due from either a judgment, settlement or final award in an arbitration proceeding exceeds the total liability of all liable health care providers, the excess up to $500,000 shall be paid from the Patient's Compensation Fund,[4] according to *139 Section 40:1299.42(B)(3)(a). The health care provider who does not qualify under the Act does not receive the benefit of this limit on his liability for claims of medical malpractice.

To determine the amount, if any, to be paid from the Patient's Compensation Fund, Section 40:1299.44(C)(5) provides that the court shall consider the liability of the health care provider as established, where the insured or the self-insured health care provider has paid $100,000. In fact, in Stuka v. Fleming, 561 So.2d 1371, 1374 (La.1990), this Court held that the Fund was precluded from contesting the issue of liability in a malpractice case in which the victim settled with one health care provider for $100,000 and released other health care providers without receipt of any additional consideration. The Medical Malpractice Act contemplates that only the health care provider is to be the actual party defendant. Rather than being either a negligent party or the equivalent of an Article 2315 defendant, the Fund is considered simply a third party with an interest in the proceedings when the damages exceed $100,000. Koslowski v. Sanchez, 576 So.2d 470, 473-74 (La.1991) (quoting Williams v. Kushner, 549 So.2d 294, 296 (La.1989)). This Court in Stuka

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633 So. 2d 136, 1994 La. LEXIS 549, 1994 WL 62774, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-insurance-corp-of-america-la-1994.