UNITED MEDICAL CORP. OF LOUISIANA v. Johns

798 So. 2d 1161, 2001 WL 1329223
CourtLouisiana Court of Appeal
DecidedOctober 3, 2001
Docket2000-CA-1226
StatusPublished
Cited by1 cases

This text of 798 So. 2d 1161 (UNITED MEDICAL CORP. OF LOUISIANA v. Johns) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
UNITED MEDICAL CORP. OF LOUISIANA v. Johns, 798 So. 2d 1161, 2001 WL 1329223 (La. Ct. App. 2001).

Opinion

798 So.2d 1161 (2001)

UNITED MEDICAL CORPORATION OF LOUISIANA, d/b/a United Medical Center of New Orleans
v.
Brenda JOHNS.

No. 2000-CA-1226.

Court of Appeal of Louisiana, Fourth Circuit.

October 3, 2001.

*1162 Clarence F. Favret, III, Angela C. Imbornone, Favret, Demarest, Russo & Lutkewitte, New Orleans, LA, Counsel for Defendant/Appellant.

Stephanie B. Laborde, Milling Benson Woodward, L.L.P., Baton Rouge, LA, Council for Plaintiff/Appellee.

Court composed of Judges CHARLES R. JONES, PATRICIA RIVET MURRAY and DENNIS R. BAGNERIS, SR.

PATRICIA RIVET MURRAY, Judge.

Plaintiff, Brenda Johns, appeals a judgment and amended judgment rendered in connection with a petition to nullify a default judgment obtained by her in a medical practice action. In a judgment signed on June 21, 1999, the trial court granted the petition of the Louisiana Patient's Compensation Fund Oversight Board ("PCF") to nullify a default judgment entered against Dr. David Golden. On July 29, 1999, the court rendered a judgment, which granted Ms. Johns' motion for new trial and amended the earlier judgment to deny the petition for nullity as to Dr. Golden's liability, but granted it as to the amount of damages that resulted from that liability.

FACTS AND PROCEDURAL HISTORY

On May 20, 1994, Brenda Johns filed a medical malpractice lawsuit against three defendants who were not "qualified" health care providers as defined by Louisiana's Medical Malpractice Act ("the Act"), La. R.S. 40:1299.41, et seq.[1] Ms. Johns also invoked a medical review panel with regard to her allegations that Dr. David Golden and United Medical Corporation of Louisiana, d/b/a United Medical Center of New Orleans ("UMC"), two "qualified" health care providers, had committed malpractice in their treatment of her in March 1993. On May 16, 1995, the panel rendered its opinion that Dr. Golden, but not UMC, had failed to comply with the appropriate standard of care in treating Ms. Johns. On August 14, 1995, Ms. Johns amended her district court action to add Dr. Golden and UMC as defendants in her malpractice lawsuit; both were served.

*1163 On August 1, 1996, the trial court rendered a default judgment against Dr. Golden, UMC, and two of the non-qualified defendants. On November 7, 1996, the court confirmed the default judgment against the defendants and rendered judgment in Ms. Johns's favor against the defendants, in solido, for $250,000.00. Seventy-one days after the default judgment was confirmed, Ms. Johns' attorney served the PCF with the default judgment and made demand for immediate payment under the Act.[2]

On February 27, 1997, UMC filed a petition to nullify the default judgment rendered against it because it had not received notice of either the preliminary default or the confirmed default judgment. The PCF, which, pursuant to the Act, would be responsible for the portion of the judgment exceeding $100,000.00, intervened in this matter.[3]

Trial on the petition for nullity was set for April 21, 1999. Before trial began, the parties stipulated that the default judgment against UMC was null and void, thus disposing of the UMC petition. However, because the stipulation did not affect the default judgment as to Dr. Golden, trial proceeded on the PCF's intervention. After hearing arguments from counsel and testimony from Ms. Johns' attorney, who had obtained the default judgment, the court took the matter under advisement.

On June 21, 1999, the trial court rendered judgment, granting the petition to nullify the default judgment as to quantum only and finding that "the PCF was entitled to notice of the plaintiff's intent to take a default against the qualified health care providers" and "should have been given the opportunity to contest and/or appeal the amount of damages awarded." Ms. Johns filed a motion for new trial, seeking to have the quantum award annulled only to the extent that it exceeded $100,000.00. The trial court granted the motion, and, on July 29, 1999, rendered an amended judgment that nullified the default judgment as to Dr. Golden's liability, but granted it as to the amount of damages caused thereby. This appeal followed.

DISCUSSION

In its reasons for judgment, the trial court noted that the Medical Malpractice Act was silent on the question of whether the PCF, which was not a defendant in the suit filed by Ms. Johns, was entitled to notice before a default judgment was entered against a qualified health care provider. The court, however, found that the PCF was "akin" to a state agency, which, statutorily, was required to satisfy judgments or settlements, in excess of $100,000, involving qualified health care providers. The court concluded, therefore, that Code of Civil Procedure article 1704, which provides that the state, as well as its agencies or instrumentalities, is entitled to notice of the intent to enter a default judgment for which it would be liable, is applicable to the PCF. The court stated that the PCF was entitled to notice of the proceedings at a point where it would have had an opportunity to exercise its limited right to appeal quantum. Although the Act is silent as to when a plaintiff must *1164 submit a confirmed default judgment to the PCF, the court reasoned that it would be inappropriate to withhold notice until the appeal delays had run, thereby depriving the PCF of its right to contest the amount of damages suffered as result of a qualified provider's malpractice. The trial court explained that its ruling was consistent with the provisions of the Act regarding settlements, which afford the PCF an opportunity to object to the settlement and to present evidence to support its position that a settlement should not be approved. Because the PCF had not received such notice, the court granted the PCF's petition to nullify the default judgment against Dr. Golden.

We find the trial court's reasoning to be compelling. As the court noted, there is no provision in the Act for the situation presented herein. Nor are there any cases addressing this issue; our research located only one reported case that involved the PCF and a default judgment obtained against a health care provider. See Boudreaux v. Varnishung, 97-1761 (La.App. 1 Cir. 6/29/98), 713 So.2d 1192. That case, however, did not involve a claim against the PCF for an excess judgment.[4]

As the Fifth Circuit explained in McCrory v. Jefferson Parish Hospital Service District No. 2, 96-624 (La.App. 5 Cir. 12/30/96), 686 So.2d 1060, the issue of liability in a medical malpractice claim generally is to be determined between the malpractice victim and the health care provider either by settlement or by trial. The Fund primarily is concerned with the issue of damages. "Once payment by one health care provider has triggered the statutory admission of liability, the Fund cannot contest that admission. The only issue between the victim and the Fund thereafter is the amount of damages sustained by the victim as a result of the admitted malpractice. Stuka v. Fleming, 561 So.2d [1371,] 1374 [(La.1990)]." 686 So.2d at 1063.

Ms. Johns contends that the trial court erred, as a matter of law, when it concluded that the PCF is "akin" to a state agency to which the notice provisions of La.Code Civ.P. art. 1704 are applicable.

La.Code Civ.P. art. 1704 provides in part:

A.

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798 So. 2d 1161, 2001 WL 1329223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-medical-corp-of-louisiana-v-johns-lactapp-2001.