GMSR: Greines, Martin, Stein & Richland LLP

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Court strikes multimillion economic award against hospital based on plaintiff's settlement with doctor
March 23, 2011

Leung v. Verdugo Hills Hospital (2011) 193 Cal. App. 4th 971 / 2011 Cal.App. LEXIS 335 (California Court of Appeal, Second Appellate District, Division Four) [partially published]. Plaintiff sued a pediatrician and a hospital, GMSR's client, for injuries arising out of untreated jaundice. Plaintiff settled with the pediatrician, but the trial court ruled that the settlement was not in "good faith." In the trial against the hospital, the jury awarded $15.5 million in economic damages—the present value of a $96 million award—for which the judgment held the hospital jointly and severally liable. On appeal, GMSR successfully urged the court to apply the common law rule that the release of one joint tortfeasors releases all. As a result, the hospital's liability was limited to the $100,000 in noneconomic damages for which it is severally liable.

Attorney
Robert A. Olson


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