Batson v. South Louisiana Medical Center

Decision Date25 September 1998
Docket NumberNo. 97 CA 1382.,97 CA 1382.
Citation724 So.2d 782
PartiesDeborah BATSON, Eula Maye Batson, and Billy M. Batson v. SOUTH LOUISIANA MEDICAL CENTER and State of Louisiana, Through the Department of Health and Human Resources, et al.
CourtCourt of Appeal of Louisiana — District of US

Michael Samanie, Herbert W. Barnes, Houma, for Plaintiffs-Appellees Deborah Batson, et al.

Gregory C. Weiss, Kathryne Caraway, New Orleans, for Defendants State of Louisiana and South Louisiana Medical Center.

Peter Sperling, New Orleans, for Defendants-Appellants Medforce Physical Therapy Services, Inc., et al.

Joseph A. Reilly, Lafayette, for Defendant Sunbelt Physical Therapy.

Richard Ieyoub, Baton Rouge, Attorney General on behalf of the State of Louisiana, through the Louisiana Department of Justice Defendant.

Amos H. Davis, Baton Rouge, for Defendant Chicago Insurance Company.

Kristin E. Hendericks, Metairie, for Defendant Medforce International, Inc.

BEFORE: FITZSIMMONS and GUIDRY, JJ., and CHIASSON1, J. Pro Tem.

GUIDRY, J.

In this medical malpractice action, defendants, Medforce Physical Therapy Services, Inc., Robert Rowe, Leah Angelito, and St. Paul Fire and Marine Insurance Company, appeal from the trial court's judgment finding that St. Paul Fire and Marine Insurance Company was contractually liable to the plaintiffs for the payment of damages attributable to the aforementioned defendants. Plaintiffs answer the appeal and request an increase in the sum of damages awarded. We affirm.

FACTS AND PROCEDURAL HISTORY

On or about July 26, 1990, Deborah Batson (Ms. Batson) had a surgical procedure performed on her at South Louisiana Medical Center2 (SLMC) in Houma, Louisiana. Following the surgical procedure, Ms. Batson contracted sepsis. As a result of the sepsis, Ms. Batson suffered severe complications and spent several months in the intensive care unit. During this hospital stay, Ms. Batson developed a hip fracture, decubitus ulcers, flexion contractures and became incontinent.

On July 19, 1991, Ms. Batson and her parents, Eula Maye Batson and Billy M. Batson, (collectively referred to as "plaintiffs") filed a petition for damages, naming as defendants, SLMC and the State of Louisiana, through the Department of Health and Human Resources, Office of Hospitals. Plaintiffs alleged that during her hospital stay, Ms. Batson developed severe complications resulting in near-death and severe disabling injuries. Plaintiffs further alleged that Ms. Batson's injuries were the result of SLMC's negligence. Plaintiffs asserted that SLMC's negligence resulted from a failure to properly and timely diagnose Ms. Batson's condition, failure to provide adequate and competent medical care, failure to provide adequate and competent medical testing, failure to provide the proper standard of care required and failure to obtain informed consent.

On March 23, 1993, plaintiffs filed a first supplemental and amending petition for damages, naming as additional defendants: Louisiana Physical Therapy and Athletic Rehabilitation, Inc.; Medforce International, Inc.; Medforce Physical Therapy Services, Inc.; Sunbelt Physical Therapy Services, Inc.; Robert Rowe; and Leah Angelito (collectively referred to as "defendants").3 Plaintiffs contended that Medforce International, Inc. merged with Medforce Physical Therapy Services, Inc. Plaintiffs alleged that SLMC had contracted with Louisiana Physical Therapy and Athletic Rehabilitation, Inc., and under the contract, Louisiana Physical Therapy and Athletic Rehabilitation, Inc. would provide SLMC with physical therapists and rehabilitation services. It was alleged that Louisiana Physical Therapy and Athletic Rehabilitation, Inc. then contracted with Medforce International, Inc., and under this contract, Medforce International, Inc. was to provide Louisiana Physical Therapy and Athletic Rehabilitation, Inc. with inpatient and outpatient physical therapists to perform services at SLMC. It was also alleged that Robert Rowe (Mr. Rowe), a physical therapist, was an employee of Medforce International, Inc. and provided physical therapy services to Ms. Batson at SLMC. Plaintiffs contended that Ms. Batson developed severe complications as a result of the actions of Mr. Rowe and Medforce International, Inc. Plaintiffs further contended that Medforce International, Inc. and/or Louisiana Physical Therapy and Athletic Rehabilitation, Inc. were vicariously liable for the negligent acts and omissions of Mr. Rowe.

Plaintiffs also asserted that Medforce International Inc. contracted with Sunbelt Physical Therapy Services, Inc. It was alleged that under this contract, Sunbelt Physical Therapy Services, Inc. would provide physical therapists to Medforce International, Inc., and in turn, Medforce International, Inc. would use these physical therapists to provide physical therapy services at SLMC. Plaintiffs asserted that Leah Angelito (Ms. Angelito), a physical therapist, was an employee of Sunbelt Physical Therapy Services, Inc., Medforce International, Inc., and/or Louisiana Physical Therapy and Athletic Rehabilitation, Inc., and performed physical therapy on Ms. Batson at SLMC. Plaintiffs alleged that Ms. Batson developed severe complications as a result of the physical therapy treatment, or lack thereof, received from Ms. Angelito. Plaintiffs contended that Sunbelt Physical Therapy Services, Inc., Medforce International, Inc. and/or Louisiana Physical Therapy and Athletic Rehabilitation, Inc. are vicariously liable for the negligent acts and omissions of Ms. Angelito.

Plaintiffs asserted that SLMC contracted with Medforce Physical Therapy Services, Inc. to receive physical therapy and rehabilitation services from Medforce Physical Therapy Services, Inc. Plaintiffs further asserted that while Ms. Batson was in SLMC, Ms. Batson developed severe complications as a result of the actions and inaction's of Medforce Physical Therapy, Inc.

Medforce International, Inc., Medforce Physical Therapy Services, Inc. and Robert Rowe filed an answer generally denying plaintiffs' allegations. On July 29, 1994, SLMC and the State filed an answer generally denying plaintiffs' allegations. SLMC and the State filed a cross-claim, naming as defendants: Medforce International, Inc.; Medforce Physical Therapy Services, Inc.; Sunbelt Physical Therapy Services, Inc.; Mr. Rowe; and Ms. Angelito. SLMC and the State alleged that, if liable, they were entitled to indemnity and/or contribution of at least $1,000,000.00 and unlimited future medical care and related benefits from the cross-claim defendants, pursuant to a hold harmless agreement with Medforce International, Inc. SLMC further alleged that a contract existed with Medforce International, Inc. which required Medforce International, Inc. to provide physical therapists to Louisiana Physical Therapy and Athletic Rehabilitation, Inc. for both inpatient and outpatient physical therapy services at SLMC. It was contended that during Ms. Batson's stay in the intensive care unit, she developed extensive flexion contractures that were caused solely by the fault and/or negligence of agents and/or personnel of Medforce International, Inc. by: failing to carry out the physicians' orders which required physical therapy on Ms. Batson four times per day; failing to timely advise the physicians at SLMC of the progressive nature of Ms. Batson's flexion contractures; and failing to recommend that therapy be initiated seven days per week due to the progressive nature of the flexion contractures.

Thereafter, plaintiffs amended their petition to add St. Paul Fire and Marine Insurance Company as a defendant, alleging St. Paul Fire and Marine Insurance Company provided a policy of liability insurance covering Medforce Physical Therapy Services, Inc. Plaintiffs also alleged that Ms. Angelito was the borrowed servant of Medforce Physical Therapy Services, Inc. Plaintiffs further alleged that Medforce Physical Therapy Services, Inc. was vicariously liable for the negligent acts and omissions of Ms. Angelito.

A four-week jury trial was held from July 8, through August 2, 1996. Prior to the jury returning a verdict, plaintiffs entered into a high-low settlement agreement with defendants (Medforce Physical Therapy Services, Inc.; Louisiana Physical Therapy and Athletic Rehabilitation, Inc.; Mr. Rowe; and Ms. Angelito).4 According to the agreement, a low-end amount of $750,000.00 in damages would be paid if the jury returned a verdict less than $750,000.00, even if there was a finding of no fault on the part of these defendants. The high-end of the agreement was $1,750,000.00, meaning that if the jury returned a damages award greater than this figure, relative to these defendants' liability, the plaintiffs had agreed to accept a settlement amount of $1,750,000.00.

Following deliberations, the jury returned a verdict, finding that SLMC, Medforce Physical Therapy Services, Inc., Mr. Rowe and Ms. Angelito were all liable in their treatment of Ms. Batson relative to her flexion contractures.5 Fault was assessed as follows: SLMC with 90% of the fault; Medforce Physical Therapy Services, Inc. with 9.7% of the fault; Mr. Rowe with 0.2% of the fault; and Ms. Angelito with 0.1% of the fault. Ms. Batson was awarded the following damages:

1) Past medical expenses $ 536,949.91 2) Future medical expenses $1,000,000.00 3) Physical pain and suffering, past and future $ 50,000.00 4) Mental pain and suffering, past and future $ 50,000.00

In addition, the jury found that Ms. Angelito was a borrowed employee of Medforce Physical Therapy Services, Inc.

On October 4, 1996, plaintiffs filed a motion to enforce the settlement agreement. The issue before the trial court was whether plaintiffs were able to recover the entire damages award from St. Paul Fire and Marine Insurance Company who insured Medforce Physical Therapy Services, Inc. and its employees, Mr. Rowe and Ms. Angelito. A hearing on the motion was held on November 22, 1996. At the...

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