By Damian D. Capozzola, Esq., and Jamie Terrence, RN
News
A New Jersey Superior Court recently approved a nearly $12 million medical negligence settlement to support the long-term care of a plaintiff who suffered severe brain damage during childbirth. The lawsuit claimed that medical protocol lapses by the hospital, the obstetrician, and anesthesiology team led to the plaintiff’s condition. Following an emergency cesarean delivery, the plaintiff’s health deteriorated, resulting in a delayed resuscitation effort that left her without a heartbeat for 16 minutes. She has since required full-time care and rehabilitation.
The settlement includes a $5 million structured trust to manage the plaintiff’s long-term needs, along with $2 million in a separate trust for her young daughter, acknowledging the effect on her family. Structured settlements like this one are designed to protect recipients’ financial stability, with court oversight ensuring responsible fund management for lifetime care. The court also approved $3.4 million in attorney fees and more than $500,000 in costs, reflecting the resources required in complex medical negligence cases.
Background
On Oct. 15, 2024, the New Jersey Superior Court approved a significant medical negligence settlement of nearly $12 million to support the ongoing care of the plaintiff, who suffered severe and permanent brain damage during childbirth. The lawsuit stems from a series of medical events that occurred while the plaintiff, then pregnant with her first child, was receiving treatment at a New Jersey hospital. Represented by her co-guardians, the plaintiff’s family brought claims against multiple defendants, including the hospital, her attending obstetrician, and the anesthesiology team involved in her care. They claimed that serious lapses in medical protocols during the plaintiff’s labor and delivery led to extensive, irreversible injuries.
On July 20, 2020, the plaintiff, then 39 weeks’ pregnant, arrived at the hospital to deliver her child. Because of concerns about labor progression and a deceleration in fetal heart rate, her medical team opted to perform an emergency cesarean delivery. However, during the procedure, the plaintiff’s condition deteriorated rapidly — she stopped breathing, her blood pressure dropped, and her heart stopped beating. According to the complaint, critical resuscitation efforts were delayed, with a full 10 minutes passing before a “code blue” was called. The complaint further alleges that none of the healthcare providers present followed American Heart Association guidelines for resuscitation. A defibrillator was reportedly on hand but was not used, and no chest compressions were administered until after the code blue team arrived. The complaint describes the resuscitation effort as “poorly conducted” with “egregious lapses in communication” among the team of doctors and nurses in the operating room.
These delays and alleged failures led to the plaintiff being without a heartbeat for 16 minutes. Although her pulse was eventually restored, the extended period without oxygen caused severe brain damage. The plaintiff was placed in intensive care, where she remained comatose for months before being transferred to a rehabilitation center. She has since remained in a rehabilitation facility, where she requires full-time care, is unable to speak, and remains immobile, four years after the birth of her daughter. The complaint further noted that the plaintiff received inadequate care while in intensive care, and that the hospital did not readily provide records related to her treatment.
The case, filed in 2020, led to a significant settlement following extensive legal proceedings. The defendants agreed to a nearly $12 million settlement, with the hospital contributing $10 million and the remaining $1.9 million paid by the attending physician and anesthesiology group. The structured settlement required court approval to ensure that funds would support the plaintiff’s lifelong care needs. The court granted approval, establishing the following components to secure the plaintiff’s financial support and facilitate her care.
The key feature of the approved settlement was the creation of a structured settlement administration trust, designed to manage $5 million of the plaintiff’s settlement funds. Financial professionals were appointed as the trustee of the fund. The structured trust ensures that the plaintiff’s funds are protected and disbursed gradually to cover her long-term medical, rehabilitative, and personal needs.
The plaintiff’s daughter, who was born at the time of the incident and is now 4 years old, will receive $2 million held in a separate trust. This provision underscores the settlement’s intent to support not only the plaintiff’s ongoing needs, but also those of her daughter, whose life also has been deeply affected by these events.
Additionally, the court approved direct payments of $150,000 each to the plaintiff’s co-guardians. This compensation acknowledges the role they played and will continue to play in managing the plaintiff’s medical and legal affairs, as well as in representing her interests throughout the litigation and settlement process.
Finally, the court awarded the plaintiff’s attorneys $3,400,158.09 in legal fees. In addition, the court approved $566,139.70 for reimbursable expenses incurred throughout the case, reflecting the complex litigation process and the resources necessary to support the plaintiff’s claims.
What This Means for You
Structured settlements are financial arrangements commonly used in legal cases, particularly those involving significant personal injury, medical malpractice, or wrongful death claims. These arrangements are designed to provide long-term financial security by distributing settlement funds in installments over a set period, rather than as a single lump sum. Structured settlements offer a range of benefits, both financial and practical, for recipients who have ongoing medical, personal, or rehabilitative needs resulting from injury or illness.
Structured settlements are created through an agreement between the parties and typically require court approval to ensure terms align with the recipient’s best interests. Part or all of the settlement is paid through periodic payments, often administered by professional trustees or financial managers. For many injury victims or their families, managing a large lump sum can be overwhelming and financially complex, with risks of quickly depleting funds without expert guidance. Structured settlements mitigate these risks by spreading payments over time and involving professional trustees and advisors to oversee fund distribution.
The settlement funds usually are placed into a trust or annuity managed by a third-party financial institution, such as a bank or insurance company, which oversees the funds’ disbursement. These installment payments can be customized to fit the recipient’s needs, such as monthly or annual payments, and may even include additional funds for other expenses, such as surgeries, medical equipment, or specialized treatments. Structured settlements can be particularly valuable for plaintiffs facing a lifetime of medical care, since they offer stability and predictable income.
For structured settlements involving minors, incapacitated adults, or large sums intended for lifetime support, court approval is almost always required. The court’s role in approving these settlements is to confirm that the terms are in the best interest of the recipient, especially when they cannot independently manage their finances because of age or capacity. The court examines the terms to ensure that the arrangement is financially sound and will meet the recipient’s needs. A court-approved structured settlement includes safeguards against mismanagement or misappropriation of funds, as the funds are protected within a trust or similar financial product that specifies the timing and purpose of each payment. They reduce the risk of rapid fund depletion and provide a consistent income stream for ongoing costs. Trustees and administrators are appointed by the court to manage the funds responsibly.
Structured settlements typically are managed by banks, insurance companies, or specialized settlement firms, which oversee the distribution of funds based on the court-approved arrangement. For example, a trustee might be responsible for managing the financial details, ensuring timely payments, and coordinating with the recipient or their guardian to approve additional expenses when needed. Facilitators, often specialized financial advisors or legal professionals, assist in establishing the initial terms and managing compliance with court orders and the settlement agreement.
The settlement here reflects the consideration of not only the patient’s needs but also those of affected family members — in this case, the plaintiff’s minor child. The separate trust established for the child is intended to ensure that she also has financial security and resources to support her future. It recognizes the effect such cases have on the entire family.
The court also awarded the plaintiff’s attorneys more than $3.4 million in fees. These high fees are not uncommon in complex cases like medical negligence, where attorneys assume significant risks on behalf of their clients and often work on a contingency basis, meaning they only get paid if they secure a favorable outcome at trial or through a settlement.
The court also awarded the plaintiff’s attorneys more than $500,000 in costs for reimbursable expenses. In lengthy, medically complex cases, attorneys often invest considerable resources upfront. They cover expenses for expert witnesses, medical records, and a host of other costs involved in bringing complex medical negligence lawsuits. The financial commitment that law firms make ensures clients can pursue their claims without bearing the immediate costs, which would be insurmountable for many plaintiffs. For patients with possible medical malpractice claims, it emphasizes the importance of experienced counsel willing to invest in a case and absorb the risk of failing to reach a settlement or taking the case to trial and losing.
Finally, on the substantive medicine side, note that every healthcare professional, technician, and assistant present in the operating room when the patient suffered cardiac and respiratory arrest had been trained in Advanced Cardiac Life Support (ACLS) or Basic Cardiac Life Support (BCLS), including the use of the defibrillator and the emergency medication available in the crash cart. With an anesthesiologist in the room, in addition to trained staff, resuscitation can start immediately.
The only hindrance is the presence of untrained personnel with expired or no credentials. These regulations and laws required for licensure require documentation of training, renewal of certifications, and annual evidence of competency. Every healthcare organization should assure that staff have current credentials, certifications, and licenses before they participate in any part of patient care.
Reference
- Decided on Oct. 15, 2024, in the Superior Court of New Jersey, Hudson County, Case No. HUD-L-4808-20.
Damian D. Capozzola, Esq., The Law Offices of Damian D. Capozzola, Los Angeles Jamie Terrence, RN, President and Founder, Healthcare Risk Services, Former Director of Risk Management Services (2004-2013), California Hospital Medical Center, Los Angeles
A New Jersey Superior Court recently approved a nearly $12 million medical negligence settlement to support the long-term care of a plaintiff who suffered severe brain damage during childbirth.
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