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California Nursing Home Verdict Tells a Bigger Story

By Joe Consumer

We realize that we?ve been a bit focused on national calamities this week. But honestly, when it comes to issues we?re concerned about here at ThePopTort ? corporate accountability, regulatory failures and the importance of civil courts as the last line of defense ? the BP spill and the financial collapse (not to mention Toyota and the  Massey Energy mine explosion) are the gifts from hell that keep on giving. (Like here, here, here here.) 

While it may seem like we?re shifting gears with this story, we?re really not because it kinda sums up everything you need to know about the above.

Yesterday, a California jury awarded a family $1.1 million (compensatory damages) for elder abuse and neglect that led to the death of 79-year-old Frances Tanner in 2005, but it did something even more important.  It found that the behavior of Colonial Healthcare and its parent company, Horizon West Healthcare Inc., was "malicious, oppressive or fraudulent," and sent it a stern and unmistakable message: a $28 million punitive damage award, to compel the company to clean up its act and stop killing and harming patients.  One attorney reported, ?I talked to jurors and they wanted to send a message and an incentive for the facility to spend more of its profits on patient care.?  This is exactly punitive damages's role, to hold a company accountable especially when regulations fail.  It shows how important it is for states to retain their power to protect the public health and safety. 

May we remind you that California has a severe cap in place for patients injured by medical malpractice. This fortunately does not extend to punitive damages.  But many states do severely cap punitive damages and there was actually a movement to broadly cap compensation in nursing home cases in the federal health insurance law ? an effort that fortunately failed.

But what this case points up is the absolute stupidity of legislative  ?caps?, especially when politicians in Washington or state capitals step in and take authority away from the state officials and state civil courts, deciding that they know best how to compensate someone for harm and how to hold a company responsible.  Here?s Democracy Now!'s take on the BP liability cap:

Full post as published by ThePopTort on May 14, 2010 (boomark / email).