Riedel v. Akron Gen. Health Sys.

• Citation: 2018 Ohio 840,97 N.E.3d 508
• Decision Date: 08 March 2018
• Docket Number: Nos. 104962,104968,s. 104962
• Parties: Aaron RIEDEL, et al., Plaintiffs–Appellees v. AKRON GENERAL HEALTH SYSTEM, et al., Defendants–Appellants
• Court: United States Court of Appeals (Ohio)

97 N.E.3d 508

2018 Ohio 840

Aaron RIEDEL, et al., Plaintiffs–Appellees

v.AKRON GENERAL HEALTH SYSTEM, et al., Defendants–Appellants

Nos. 104962

104968

Court of Appeals of Ohio, Eighth District, Cuyahoga County.

RELEASED AND JOURNALIZED: March 8, 2018

William D. Bonezzi, Jason Paskan, Bonezzi, Switzer, Polito & Hupp Co., L.P.A., 1300 East 9th Street, Suite 1950, Cleveland, Ohio 44114, Stephen W. Funk, Roetzel & Andress L.P.A., One Cleveland Center, 9th Floor, 1375 East Ninth Street, Cleveland, Ohio 44114, ATTORNEYS FOR APPELLANTS

Stuart E. Scott, William Hawal, Spangenberg, Shibley & Liber, L.L.P., 1001 Lakeside Avenue East, Suite 1700, Cleveland, Ohio 44114, Jerry M. Miniard, Miniard Law Office, 6614 Dixie Highway, Florence, Kentucky 41042, ATTORNEYS FOR APPELLEES

BEFORE: Laster Mays, J., McCormack, P.J., and Celebrezze, J.

JOURNAL ENTRY AND OPINION

ANITA LASTER MAYS, J.:

{¶ 1} In this consolidated appeal, defendants-appellants Chris Kalapodis, M.D. ("Dr. Kalapodis") and Lodi Community Hospital ("Lodi") (collectively "appellants") jointly challenge the trial court's judgments granting a new trial on the issue of noneconomic damages only, and the trial court's failure to apply the Patient Protection and Affordable Care Act ("ACA"), 42 U.S.C. 18001, et seq. to reduce the award of future economic damages as a collateral source. Lodi unilaterally attacks the trial court's rulings of liability pursuant to agency by estoppel. We affirm the trial court's findings.

I. Facts and Background

{¶ 2} On October 10, 2014, plaintiffs-appellees Aaron Riedel ("Riedel") and his minor daughters Chloe and Paige Riedel (collectively "appellees") filed a medical malpractice and loss of consortium action against appellants and several other entities.

{¶ 3} Appellees complained that the untimely diagnosis of Riedel's spinal epidural abscess was the cause of Riedel's incomplete paraplegia. Dr. Kalapodis testified that, in spite of the presence of an active methicillin-resistant staphylococcus aureus ("MRSA") infection that was causing Riedel severe back pain, he failed to diagnose the abscess during Riedel's May 22, 2013 emergency room visit.

{¶ 4} On June 24, 2016, the jury issued a verdict against appellants, jointly and severally. Riedel was awarded $5,200,000 in economic damages, but no noneconomic damages. Each daughter was awarded $200,000 in noneconomic damages for the loss of consortium claims.

{¶ 5} Appellees filed a motion for a new trial for noneconomic damages, while appellants filed to set-off economic damages. Appellants' pretrial motion to introduce evidence addressing the impact of the ACA on damage awards was defeated by appellees' motion in limine, granted on May 25, 2016. Appellants filed a post-trial motion, advocating application of the ACA to offset economic damages awarded by the jury in this case. Lodi also filed motions for judgment notwithstanding the verdict and a new trial pursuant to Civ.R. 50(B) and 59.

{¶ 6} On August 17, 2016, the trial court held hearings on the pending motions. On August 31, 2016, the trial court issued three entries resolving the issues.

{¶ 7} In the first entry the trial court denied appellants' motion to set-off economic damages under the ACA:

This court finds that Jones v. Metrohealth Med. Ctr. , 2016-Ohio-4858, 68 N.E.3d 281, ¶ 1 (8th Dist.) does not apply because this case does not involve a political subdivision.

Motion of defendants Lodi Community Hospital to conduct post trial evidentiary hearing on set-off of economic damages award, filed 07/11/2016, is denied.

Motion to conduct post trial evidentiary hearing on set of economic damages award on behalf of defendant Chris Kalapodis, M.D., filed 07/08/16, is denied.

{¶ 8} The second entry summarily denied Lodi's motions under Civ.R. 50(B) and 59. The third entry granted appellees' motion for a new trial on noneconomic damages, explaining that:

In Ford v. Sekic , [8th Dist. Cuyahoga No. 98835], 2013-Ohio-1895 [2013 WL 1932789], ¶ 13, the Eighth District Court of Appeals acknowledged that "when a plaintiff receives damages for medical expenses but does not receive an award of damages for past pain and suffering, and where there is evidence supporting such damages, such judgment is against the manifest weight of the evidence," quoting Juarez v. Osterman , 10th Dist. [Franklin] No. 98 AP–1221 [1999 WL 604135], 1999 Ohio App. LEXIS 6536 (Aug. 12, 1999). See also Cooper v. Moran , 11th Dist. [Lake] No. 2010-L-141, 2011-Ohio-6847 [2011 WL 6938587], ¶ 21–23 ; Boldt v. Kramer , 1st Dist. [Hamilton] No. C–980235 [1999 WL 299888], 1999 Ohio App. LEXIS 2140 (May 14, 1999). The court went on to say that "under circumstances where a substantial injury is sustained and there is unrefuted evidence of pain and suffering, courts have found that an award for medical expenses without any valuation for pain and suffering is against the manifest weight of the evidence." Id. See Cooper at ¶ 21–22 ; Garaux v. Ott, 5th Dist. [Stark] No. 2009 CA 00183, 2010-Ohio-2044 [2010 WL 1839444], ¶ 26 ; Hardy v. Osborn , 54 Ohio App.3d 98, 560 N.E.2d 783 (8th Dist.1988). The court found that "a new trial on that issue alone is necessary to make the injured party whole." Id. , quoting Couture v. Toledo Clinic, Inc. , [6th Dist. Lucas No. L-07-1277], 2008-Ohio-5632 .

{¶ 9} Dr. Kalapodis appealed in 8th Dist. Cuyahoga No. 104692 on September 16, 2016, and Lodi on September 19, 2016 in 8th Dist. Cuyahoga No. 104968. Appellees' unopposed motion to consolidate the appeals was granted.

II. Assignments of Error

{¶ 10} Appellants jointly proposed the first two assigned errors while Lodi unilaterally seeks relief in assigned errors three and four:

I. Appellants' Common First Assigned Error: the trial court erred in limiting the new trial in this case to noneconomic damages only.

II. Appellants' Common Second Assigned Error: the trial court erred by not reducing the future economic damages award under the provisions of the Affordable Care Act.

III. Lodi's Third Assignment of Error: the trial court erred by failing to grant a directed verdict and/or a judgment notwithstanding the verdict in favor of Lodi Community Hospital on plaintiffs' agency by estoppel claim.

IV. Lodi's Fourth Assignment of Error: the trial court erred by failing to grant a new trial on whether Lodi Community Hospital can be held vicariously liable for the alleged malpractice of Chris Kalapodis, M.D. based upon an agency by estoppel theory.

III. Analysis

A. New Trial Under Civ.R. 59

1. Standards of Review

{¶ 11} For the first assigned error, Dr. Kalapodis claims entitlement to a new trial on both economic and noneconomic damages under Civ. R. 59(A)(1) citing irregularity of the proceedings preventing a fair trial, and under Civ.R. 59(A)(6) asserting the verdict is against the manifest weight of the evidence. In addition, Lodi claims entitlement to a new trial under Civ.R. 59(A)(4), for excessive or inadequate damages due to prejudice or passion, and Civ.R. 59(A)(7), which permits a new trial where the judgment is contrary to law.

{¶ 12} We review motions under Civ.R. 59(A)(1), (4) and (6) for an abuse of discretion. Zappola v. Rock Capital Sound Corp. , 8th Dist. Cuyahoga No. 100055, 2014-Ohio-2261, 2014 WL 2466049, ¶ 65 ; McCall v. Mareino, 138 Ohio App.3d 794, 798, 742 N.E.2d 668 (8th Dist.2000) ; Peters v. Peters , 8th Dist. Cuyahoga No. 55453, 1989 WL 59253, 3 (June 1, 1989). "The decision lies within the sound discretion of the trial court and shall not be reversed absent a showing that its decision was unreasonable, arbitrary, or unconscionable." Dzina v. Dzina , 8th Dist. Cuyahoga No. 83148, 2004-Ohio-4497, 2004 WL 1902566, ¶ 76. An abuse of discretion " 'implies that the court's attitude is unreasonable, arbitrary or unconscionable.' " Blakemore v. Blakemore , 5 Ohio St.3d 217, 219, 450 N.E.2d 1140 (1983), quoting State v. Adams , 62 Ohio St.2d 151, 157, 404 N.E.2d 144 (1980).

{¶ 13} Civ.R. 59(A)(7) permits a new trial where the judgment is contrary to law and requires de novo review. "The role of this court, when reviewing the grant or denial of a motion for new trial based upon Civ.R. 59(A)(7) is to decide whether the judge erred as a matter of law." Baeppler v. McMahan , 8th Dist. Cuyahoga Nos. 74938, 75131, and 76042, 2000 WL 377506, 6 (Apr. 13, 2000), citing Pangle v. Joyce, 76 Ohio St.3d 389, 391, 667 N.E.2d 1202 (1996), citing O'Day v. Webb , 29 Ohio St.2d 215, 280 N.E.2d 896 (1972), paragraph one of the syllabus.

2. Discussion

{¶ 14} Appellants argue that a new trial should be granted on both economic and noneconomic damages because the issues are inextricably intertwined. Appellants rely on R.C. 2315.18 and 2323.43 that impose statutory caps on noneconomic damage awards.

{¶ 15} R.C. 2315.18 prescribes the "procedures for imposing tort damages." Simpkins v. Grace Brethren Church of Delaware , 149 Ohio St.3d 307, 2016-Ohio-8118, 75 N.E.3d 122, ¶ 3. The jury's interrogatories and general verdict must specify the total compensatory damages to be recovered, and identify the economic and noneconomic portions. Id., citing R.C. 2315.18(D). Judgment is then entered by the trial court for the total economic damages and for the noneconomic damages up to the limits set forth in R.C. 2315.18(B)(1), (B)(2), and (E)(1).

{¶ 16} Exceptions apply to the caps:

The damage caps on noneconomic loss do not apply where the noneconomic loss is for "[p]ermanent and substantial physical deformity, loss of use of a limb, or loss of a bodily organ system" or for "[p]ermanent physical functional injury that permanently prevents the injured person from being able to independently care for self and perform life-sustaining activities." R.C. 2315.18(B)(3)(a) and (b).

Simpkins at ¶ 5. See also Di v. Cleveland Clinic Found. , 2016-Ohio-686, 60 N.E.3d 582, ¶ 129 (8th Dist.).

{¶ 17} R.C. 2323.43 limits damages for noneconomic losses for "medical, dental, optometric or chiropractic" claims. Id. The statute was promulgated to stabilize health costs by ...