Leung v. Verdugo Hills Hospital

282 P.3d 1250 (2012)

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Nature of the Case

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Facts

Excessive bilirubin can lead to hyperbilirubinemia, in which bilirubin after migrating to the brain can cause kernicterus, leading to severe brain damage. The risk of kernicterus is higher for some infants than for others. The risk factors include these characteristics: (1) male, (2) East Asian descent, (3) born at less than 38 weeks' gestation, (4) exclusively breastfed, (5) bruising, (6) jaundice within the first 24 hours, and (7) weight loss. P was born at D and presented an almost text book case for risk of kernicterus. P's pediatrician, Steven Wayne Nishibayashi, missed the diagnosis. By the time someone figured it out, P had already developed kernicterus, resulting in severe brain damage. P sued the pediatrician and D. P settled with defendant pediatrician for $1 million, the limit of the pediatrician's malpractice insurance policy. The pediatrician agreed to participate as a defendant at trial, and P agreed to release him from all claims. The trial court found the settlement to be “grossly disproportionate to the amount a reasonable person would estimate” the pediatrician's share of liability would be. A jury found both the pediatrician and D negligent. The jury awarded P $250,000 in noneconomic damages; $78,375.55 for past medical costs; $82,782,000 (with a present value of $ 14 million) for future medical costs; and $13.3 million (with a present value of $1,154,000) for loss of future earnings. The jury apportioned negligence as follows: 55 percent as to the pediatrician, 40 percent as to the D, and 2.5 percent as to each of P's parents. The judgment stated that subject to a setoff of $ 1 million, representing the amount of settlement with the pediatrician, D was jointly and severally liable for 95 percent of all economic damages awarded to P. D appealed, and P filed a cross-appeal. Under the common-law release rule, the Court of Appeal held that P's settlement with, and release of liability claims against, defendant pediatrician also released nonsettling D from liability for P's economic damages. P appealed.