We learned of a case where a patient was injured at a hospital. The treating doctor and the hospital were sued. Doctor decided to settle for policy limits – $1M. He believes he got out early and can sit on the sidelines. He reasonably believes his involvement in the case is over. And the hospital may be on the hook for a larger sum.
The hospital sues the doctor – arguing that if a jury orders them to pay, they want the doctor’s group to underwrite some of that payment. In other words, they want to be reimbursed some of the money a jury holds them liable.
What happened here?
Defendants settle because they want closure. Defendants don’t settle to be drawn back into the case.
When a case settles for money, a settlement agreement is signed. This agreement memorializes the case will be dismissed against that defendant in exchange for money – and sometimes other terms.
How can a settlement agreement protect against a third party imposing potential rights against you, the person who just settled? One way is to have the agreement mandate the plaintiff will indemnify you, the settling defendant, against claims brought by the hospital, the other defendant. In other words, a term should be included which notes that if the hospital seeks money back from you (triggered by a judgment against the hospital), the plaintiff will have to repay you some or all of the money. This would allow you to avoid any additional loss. Indeed, that’s why you settled in the first place – for finality.
Such a technique prevents a plaintiff from double dipping as much as possible. That said, it’s unlikely a court would uphold an indemnification agreement above and beyond the amount you settled for. For example, let’s take a case where you settle for $1M, and the hospital loses $10M at trial. The hospital believes you were fully responsible (and liable) for the negligence and the injury. The hospital then sues you for the full $10M. It’s unlikely the indemnification clause would save you more than the $1M you paid out. And, every state likely has its own rules on how each addresses suits and settlements with multiple defendants.
The take-home message. If you decide to settle and there are multiple defendants, make sure you ask your attorney to make sure when you’re done, you’re really done.
I and the hospital were sued for wrongful death of a 21 yr old man who died as a result of lethal injection for a Bier Block. bier block is a regional anesthesia technique whereby blood in the arm is squeezed out (exsanguinated) with an esmarch bandage and a tourniquet around the upper arm inflated to keep blood from returning to arm. A local anesthetic, .5% xylocaine Is injected to numb the arm. it is undisputed that while in the operating room I gave a verbal order for the registered operating room nurse, an RN, to hand me in a syringe, the correct dose and drug, 40 ml of .5% xylocaine. against hospital rules and regulations and nursing rules and regulations, the RN directed the tech to leave the room, select and draw up the medication. The tech testified she didn’t know what drug she was supposed to get, and drew up what she thought was the correct drug- Marcaine/sensorcaine/bupivicaine which is contraindicated for intravenous use, and hence a Bier block. The tech handed the syringe to the RN who handed me the syringe while I was in the operating room. the tourniquet was faulty, the wrong medication Marcaine entered the circulation( it didn’t matter whether the tourniquet failed or not, because even after the short proceedure, as soon as the tourniquet was released , the drug would have entered the bloodstream and killed the patienWt anyway.)
I, and the hospital were sued. The hospital settled for 1 million. I settled for $350K. my attorney told me that if the case went to trial, the jury would have apportioned the blame and share of payout anyway, thus any attempt to sue the hospital for the negligence of it’s agents would be pointless. This case occurred in KY in 1994. Not only was I sued in civil court , but the KY Medical Board suspended my license,a fined me $5,000, put my license on probation for a year after the suspension, and ordered that I write the family a letter of apology, admitting responsibility. in it’s mnutes, the KY Medical Board recognized me as an orthopedist, would get its orthopedic expert to review the case. That expert thoroughly exonerated me. The KY Board then switched standards and held me to anesthesia standards of care. At the hearing on cross examination, the Board’s own anesthesiology expert opined that I should not have been brought before the Board for a nurse’s clear cut premeditated dereliction of duty. Question :Nurse Frazier, what was your first thought when you realized you gave Dr H the wrong medication? Answer: “There goes my nursing license.”
I still have this nagging thought, especially since this lawsuit has essentially ruined my career and has made it nearly impossible for me to get a decent job, even 23 yrs later, with no history of any other events that would distinguish me from the typical orthopedist….
could I, or should I have sued the hospital for providing me with an incompetent RN…i.e., did I not have a right to expect competent help to be provided by the hospital?
The lost income over my career is millions.
see old case law like …. Riase v Wood. Alabama
When something goes wrong, physicians in the US are viewed as if they were mafia members. Nothing they do is right, there is clearly some hiding of facts going on, they must be guilty of something and they certainly fake altruism. Money laundering and racketeering, “fortunately” don’t play a big role. It is tragic what happened to Dr. Hubbard and a shame that the Medical Boards behave like Russian Czars – guilty or not – once summoned you remain in disgrace forever.
Excellent information. Who knew this scenario could happen? WTF? Crap is an understatement. 🙂
Yet another reason to consider all hospital work as high risk encounters, when compared to outpatient care.
It just seems to me that the medical boards consider the physician guilty, with the burden of proof of innocence on the physician. Doctors are guilty instead of innocent unlike civil court where the defendant is innocent until proven quilty. Not to mention, these medical board members who sit in judgement over physicians, seem to have never practiced.
And, at least in NYS, if the verdict of a medical board case comes in favor of the doctor, the prosector can get that verdict overturned. Imagine if the prosecutor in the OJ Simpson trial, being able to do that!!