Case Name: Cynthia B. TAYLOR, and Robert Taylor, Jr. v. TULANE UNIVERSITY OF LOUISIANA, et al.
Court: Louisiana Court of Appeal
Jurisdiction: Louisiana
Decision Date: 1997-09-17
Citations: 699 So. 2d 1117
Docket Number: No. 97-C-0977
Parties: Cynthia B. TAYLOR, and Robert Taylor, Jr. v. TULANE UNIVERSITY OF LOUISIANA, et al.
Judges: Before SCHOTT, C.J., and BARRY, BYRNES, CIACCIO and PLOTKIN, JJ.
Reporter: Southern Reporter, Second Series
Volume: 699
Pages: 1117–1121

Head Matter:
Cynthia B. TAYLOR, and Robert Taylor, Jr. v. TULANE UNIVERSITY OF LOUISIANA, et al.
No. 97-C-0977.
Court of Appeal of Louisiana, Fourth Circuit.
Sept. 17, 1997.
Rehearing Denied Oct. 15, 1997.
Corinne Ann Morrison, Charles P. Blanchard, Simeon B. Reimonenq, Chaffe, McCall, Phillips, Toler & Sarpy, L.L.P., New Orleans, for Relators.
Before SCHOTT, C.J., and BARRY, BYRNES, CIACCIO and PLOTKIN, JJ.

Opinion:
hCIACCIO, Judge.
Relator, the Patient's Compensation Fund (hereinafter "PCF"), seeks supervisory writs on the trial court's denial of its motion in limine. We grant the writ and reverse the ruling of the trial court.
Fads
The underlying suit giving rise to this supervisory writ application is an action under the Medical Malpractice Act (hereinafter "MMA") against Tulane University Medical Center (hereinafter "TUMC"). The plaintiffs, Cynthia B. and Robert Taylor (hereinafter "the Taylors"), allege that Ms. Taylor suffered personal injury when a TUMC nurse improperly gave her a Demerol injection in her buttock causing neurological damage. TUMC entered into a settlement agreement with the plaintiffs which contained the following provisions:
Plaintiffs, Cynthia B. Taylor and Robert Taylor, Jr., and The Administrators of the Tulane Education Fund d/b/a Tulane University Medical Center have agreed to settle their dispute for SEVENTY-FIVE THOUSAND DOLLARS AND ZERO CENTS ($75,000.00) plus other considerations in excess of TWENTY-FIVE THOUSAND DOLLARS AND ZERO CENTS ($25,000.00) ($100,000.00 equivalent) to be paid as follows:
A. $75,000.00 to be paid by and on behalf of The Administrators of the Tu lane Educational Fund d/b/a Tulane University Medical Center.
The settlement agreement also contained a stipulation to liability which was provided in the event that the $75,000.00 plus "other consideration" was not determined to be sufficient for a judicial admission of liability under the UMMA. Specifically, the settlement agreement stated that TUMC admits to liability as to plaintiffs' allegations,"that breach of the standard of care by defendant proximately caused a permanent and disabling neurological injury to Cynthia B. Taylor as a consequence of which she and Robert Taylor, Jr. suffered damages clearly exceeding $100,000.00." The agreement further contained a provision reserving plaintiffs' rights to proceed against the PCF.
TUMC and the Taylors subsequently presented the settlement agreement for court approval in accordance with the provisions of the MMA. The PCF, a statutory intervenor in the suit, filed an objection to the petition for settlement and a Motion to Strike Allegations of the Admission of Liability. Following a hearing, the trial court granted the PCF's motion to strike the stipulation of liability contained in the settlement agreement. The trial court approved the settlement agreement in the amount of $75,000.00 and struck from the provisions of the agreement the reference to "other consideration" in the amount of $25,000.00. The trial court also struck from the agreement any reference to an admission of liability on the part of TUMC.
Prior to the court's approval of the settlement of this malpractice claim, the plaintiffs propounded on TUMC three requests for admission, namely: (1) that the medical review panel that reviewed plaintiffs' claims correctly determined that Tulane failed to comply with the standard of care; (2) that a nurse employed by Tulane breached the standard of care by administering an injection into plaintiffs buttock, and (3) that plaintiff sustained a permanent neurological injury as a result of the injection. TUMC responded, admitting all three of plaintiffs' requests. Thereafter, the PCF filed a motion for leave to amend the responses to the admissions by TUMC. This motion was denied by the trial court. PCF filed for supervisory review in this court. This court denied writs, finding that PCF "is a third party, statutory intervenor, not the 'alter ego' of a defendant health care provider." Taylor v. Tulane University of 3Louisiana, 96-0514 (La.App. 4th Cir. 4/11/97). The court stated specifically, however, that "the admissibility and effect to be given at trial of TUMC's admissions is not before the court." Id.
As a result of this ruling, the PCF subsequently filed a motion in limine, seeking a ruling that TUMC's admissions to liability, made in response to pre-trial requests for admission, were inadmissible at trial. The trial court denied that motion; the PCF now seeks our supervisory review of that ruling.
Admissibility of TUMC's admissions
Under the provisions of the Medical Malpractice Act, La. R.S. 40:1299.41, et seq., the liability of a single health care provider is limited to $100,000.00 for the injury or death of any one person. LSA-R.S. 40:1299.42(B)(2). The Act provides that damages in excess of $100,000.00, but not to exceed $500,000.00, shall be paid by the PCF. LSA-R.S. 40:1299(B)(1). Once a malpractice victim settles with a health care provider or its insurer for $100,000.00, the liability of the health care provider has been admitted or established. LSA-R.S. 40:1299.44(0(5). A settlement for the health care provider's maximum liability of $100,000.00 triggers the liability of the PCF and further precludes the PCF from contesting the health care provider's liability. LSA-R.S. 40:1299.42(B)(3); Stuka v. Fleming, 561 So.2d 1371, 1374 (La.1990). However, a settlement for less than the full $100,000.00 does not trigger the PCF's statutory liability and is insufficient to preclude the PCF from contesting the health care provider's liability. Russo v. Vasquez, 94-2407 (La.1/17/95), 648 So.2d 879.
In the present case, the Taylors concede that this case was not settled for TUMC's maximum liability of $100,000.00. In their trial court memorandum opposing the motion in limine, the Taylors argued that TUMC's admission of liability overrode the PCF's right, which they conceded to exist, to contest pliability, despite the fad that the settlement amount was less than $100,000.00. The Taylors further argued that TUMC's admissions of liability are the crux of plaintiffs case and are wholly relevant and therefore admissible.
However, the Taylors argument completely ignores the specific statutory provisions governing a malpractice suit against a qualified health care provider under the MMA. Despite plaintiffs' contentions, the Louisiana Medical Malpractice Act's express language dictates that a settlement of less than $100,000.00 does not trigger the PCF's statutory liability nor does it preclude the PCF from contesting the qualified health care provider's liability. LSA-R.S. 40:1299.44(0(5); Russo v. Vasquez, supra, 648 So.2d at 884. Where the health care provider settles for less than the maximum amount of $100,000.00 (in the Russo case the settlement was for $95,000.00), the PCF has the absolute right to contest the liability of the health care provider. Id.
In the present case, the admissions of liability of TUMC made during pre-trial discovery, while obviously relevant, completely thwart the clear and unambiguous terms of the MMA. The MMA expressly dictates the full monetary extent necessary to preclude the PCF from contesting liability of the health care provider. That amount is specifically stated to be $100,000.00 and no less. Where a health care provider and its insurer choose to settle for less than this amount, the PCF is statutorily authorized to contest liability. Allowing the plaintiffs to rely on the admissions of liability in this case completely undermines the PCF's statutory right to contest liability. The PCF can have no meaningful right to contest liability in the face of evidence presented of an admission of liability by the health care provider.
In fact, the trial- court's ruling in this case would have the effect of relieving the plaintiffs of proving the liability of the health' care provider, an effect which was not contemplated by the drafters of the MMA under the facts |sof this case. Carried to its logical conclusion, the ruling of the trial court would not preclude settlements for lesser amounts, i.e., $1,000.00 or $10,000.00, etc. coupled with an admission of liability thereby completely frustrating the legislative intent of the MMA.
We conclude that the ruling of the trial court denying relator's motion in limine directly subverts the statutorily created right of the PCF to contest liability where settlement is less than $100,000.00, and the ruling constitutes an abuse of the trial court's discretion. Accordingly, the judgment of the trial court is hereby reversed, and judgment is rendered granting the motion in limine brought by relator, excluding TUMC's admissions of liability from the trial of this matter.
WRIT GRANTED; TRIAL COURT RULING REVERSED.
PLOTKIN, J., dissents with written reasons.
BARRY, J., joins PLOTKIN's, J., dissent.