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Webster v. Cdi Ind., LLC

Citation: 337 F. Supp. 3d 818Docket: No. 1:16-cv-02677-JMS-DML

Court: District Court, S.D. Indiana; August 29, 2018; Federal District Court

Narrative Opinion Summary

In a medical malpractice case, a jury found CDI Indiana, LLC liable for the negligence of Dr. Michael Walker, a radiologist, after he failed to diagnose a patient's terminal rectal cancer. The patient and her spouse were awarded $14 million and $1 million, respectively. CDI contested the verdict, arguing against the application of the apparent agency standard established in Sword v. NKC Hospitals, and filed motions to alter the judgment, seek a new trial, or reduce the damages. The court held that CDI was liable under the apparent agency principles, as the patient reasonably believed CDI provided her care. CDI's motions were denied based on the jury's reasonable assessment of the evidence. The court also addressed procedural aspects, such as the denial of CDI's motion for bifurcation and the exclusion of certain evidentiary materials. Ultimately, the court upheld the jury's decision, finding CDI liable under the Restatement (Second) of Torts Section 429 and emphasized the importance of the patient's perception of care provision in determining liability. CDI's failure to qualify as a healthcare provider under Indiana’s Medical Malpractice Act was noted, barring it from statutory damages caps.

Legal Issues Addressed

Application of Sword v. NKC Hospitals

Application: The court determined that the principles from Sword apply to CDI, affirming CDI's liability for the negligence of its apparent agents, like Dr. Walker.

Reasoning: The Websters counter that CDI could have mitigated its liability by informing Ms. Webster that the radiologist was an independent contractor or by qualifying as a healthcare provider under Indiana’s Medical Malpractice Act.

Denial of Motions for Judgment as a Matter of Law and New Trial

Application: The court denied CDI's motions, emphasizing that the jury's verdict was supported by a reasonable assessment of the evidence.

Reasoning: The Court, skeptical of CDI's claims, denied the motion, determining that the jury must decide if CDI presented itself as offering radiology services and if Ms. Webster reasonably believed those services were provided by CDI or its employee.

Federal Rule of Civil Procedure 50(b)

Application: The court considered CDI's renewed motion for judgment as a matter of law but found sufficient evidence for the jury's decision.

Reasoning: Under Federal Rule of Civil Procedure 50(b), a court may grant judgment as a matter of law if there is insufficient evidence for a reasonable jury to rule in favor of a party.

Federal Rule of Civil Procedure 59(a) - New Trial or Remittitur

Application: The court rejected CDI's request for a new trial or remittitur, finding the jury's verdict consistent with the evidence presented.

Reasoning: A new trial may be warranted if the jury's verdict contradicts the evidence's manifest weight or if the trial was unfair to the moving party.

Federal Rule of Civil Procedure 59(e) - Altering or Amending Judgment

Application: The court found no basis for altering or amending the judgment as CDI's arguments did not present new evidence or correct manifest errors.

Reasoning: A district court can alter or amend a judgment under Fed. R. Civ. P. 59(e), which is considered an extraordinary remedy reserved for exceptional cases.

Vicarious Liability under Restatement (Second) of Torts Section 429

Application: The court applied the apparent agency standard to determine CDI's liability for Dr. Walker's negligence, focusing on the patient's reasonable belief that care was provided by CDI.

Reasoning: The jury concluded that CDI failed to adequately notify Ms. Webster of the independent contractor's status, leading her to reasonably believe the services were provided by CDI.