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Court reduces 'grossly excessive' award on malpractice case
LTC Liability Monitor, July 28, 2004
An appeals court ruled a jury's $5 million punitive damages award in a malpractice lawsuit against nursing home operator Healthmark Partners, LLC, to be unconstitutionally excessive, the St. Louis Daily Record reported.
Discovering the award was eight times greater than the company's net worth, the 8th United States Circuit Court of Appeals reduced the amount to $2 million.
The lawsuit alleged that staff negligence at Arkansas Nursing and Rehabilitation Center led to the death of a resident from septic shock. Staff failed to notify the resident's physician-although they were aware of the serious change in her condition-contrary to nursing standards of care and requests from the resident's family.
The appeals court found that although the facility's conduct was reprehensible, the $5 million award exceeds punitive damages allowed by the state's adult abuse laws and violates the U.S. Constitution's due process clause.
The jury also awarded $5 million in compensatory damages, according to the Daily Record.
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