Hunter
11/28/22
A Johnson County Medical clinic says their recent bankruptcy filing wasn’t a legal tactic to sue its insurance provider after being found liable in a malpractice judgement.
The Gazette reports that OB-GYN Associates of Iowa City and Coralville were ordered to pay $75 million in damages to an Iowa City couple whose newborn has permanent brain damage. Earlier this month, the couple’s lawyers said the clinic likely filed its bankruptcy petition in anticipation of a suing its insurance provider because the provider hasn’t paid the clinic’s policy limits of $12 million for the judgment.
In a statement last week, Dr. Jill Goodman of OB-GYN Associates said the decision to file bankruptcy was a difficult one, but was necessary because of what they called the “aggressive actions” of the lawyers who represent the infant’s parents, Andrew and Kathleen Kromphardt. Dr. Goodman accused the couple’s attorneys of repeatedly smearing their name and reputation, and denied any negligence by the clinic.
The health care providers were accused of improperly using forceps and a vacuum during delivery, crushing the baby’s head. The now 4-year-old child requires 24-hour a day care for the rest of his life.
Mercy Iowa City and OB-GYN Associates were found equally negligent and responsible for damages. The $97.4 million judgement is the largest of its kind in Iowa. The Gazette says Mercy Hospital has paid its liability, which was capped at $7 million, according to a pretrial agreement between the hospital and the Kromphardts.
A District Judge denied the clinic’s motions for a new trial or a reduced verdict, and ordered the judgment to be paid. Dr. Goodman said the clinic’s insurance provider had tried to work with the parents to allow the clinic to remain in operation during the pending appeal, but their lawyers rejected the offer. They filed an execution of judgement last month, and OB-GYN Associates filed for Chapter 11 bankruptcy on October 31st to remain in business while it attempts to reorganize.
The judge in the case says he will rule on post-judgement proceedings once both sides have responded.
