DONALD PETERSON AND BRENDA J. EUBANKS, AS CO-PERSONAL REPRESENTATIVES OF THE ESTATE OF WENDY A. ROYAL, DECEASED; AND BRENDA J. EUBANKS, INDIVIDUALLY, APPELLANTS,
v.
THE MORTON F. PLANT HOSPITAL ASSOCIATION, INC., A FLORIDA CORPORATION; MARY C. JANCSAR, R.N., AND KATHERINE H. STEPHENS, C.N.M., APPELLEES
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The personal representatives of Wendy Royal's estate appealed a judgment in favor of Morton Plant Hospital and its employees in a medical malpractice wrongful death case. The appellate court reversed and remanded for a new trial because the trial court improperly disclosed to the jury the $250,000 settlement amount with a codefendant physician, which prejudiced the plaintiffs.
The court held that the trial court erred in allowing disclosure of the settlement amount to the jury. Although the settlement had not yet been formally judicially approved, it was sufficiently final and should have been treated as a settlement protected from jury disclosure under sections 46.015 and 768.041, Florida Statutes. The error was reversible because the disclosure of the settlement amount clearly prejudiced the plaintiffs.
[1] A settlement agreement with a co-defendant, even if not judicially approved, should not be disclosed to the jury if it is otherwise final and not a Mary Carter agreement,…
[2] A trial court errs by allowing the details of a settlement with a co-defendant to become a feature of the trial, particularly when the settlement amount is disclosed to t…
Previewing 2 of 6 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“Except for the fact that it had not yet been reduced to writing, the settlement was the type of agreement that must not be revealed to the jury under sections 46.015 and 768.041, Florida Statutes (1991).”
Establishes that the Dr. Keller settlement should have been protected from jury disclosure regardless of formal judicial approval.
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceWendy Royal died on December 16, 1990, shortly after delivering her third child at Morton Plant Hospital, from a ruptured aneurysm in the splenic arte…
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ALTENBERND, Judge.
The personal representatives of the estate of Wendy A. Royal appeal a judgment in a medical malpractice action in favor of Morton Plant Hospital and two of its employees. Because the trial court allowed the details of a settlement with a eodefendant to become a feature of the trial, we reverse and remand for a new trial.
Ms. Royal entered Morton Plant Hospital on December 15,1990, for the delivery of her third child. She successfully gave birth to a daughter early in the morning. Shortly after noon, Ms. Royal was discovered in her room in a coma. She was pronounced dead at 5:18 p.m. the following day as a result of a ruptured aneurysm in the splenic artery.
Ms. Royal’s personal representatives filed a wrongful death action for the benefit of the estate, Ms. Royal’s three surviving children, and her mother. They sued the hospital and two of its employees: Mary C. Jancsar, a nurse, and Katherine H. Stephens, a nurse midwife. They also sued Dr. Robert H. Keller, a physician specializing in obstetrics and gynecology, who allegedly worked under contract for the hospital.
At the time of the pretrial conference in December 1993, Dr. Keller was still an active party in this lawsuit and was represented by separate counsel. A few days before the trial in February 1994, Dr. Keller settled with the plaintiffs. The settlement had not been judicially approved pursuant to section 768.25, Florida Statutes (1993), when the trial began. Thus, there was no written release or other settlement papers at that time. However, because the settlement was sufficiently final, no one appeared on behalf of Dr. Keller at the trial. At the beginning of the trial, the attorney representing the remaining defendants explained to the trial court:
It’s my understanding that the doctor has, in fact, agreed to pay $250,000, which were his policy limits, and that he has been dismissed with prejudice from the case with no admission [of] liability, and that this is contingent upon the receipt of the $250,000. I don’t know if it’s been received or not.
The plaintiffs’ counsel agreed that the matter had been settled, but pointed out that the trial court had not formally approved the settlement. He commented:
I can’t imagine that the Court wouldn’t approve it when it’s the policy limits of the physician, but we do not have — we have not yet entered a voluntary dismissal with prejudice because this just happened very recently, just last week, and we haven’t had time to cross all the T’s and dot all the I’s. And [the doctor’s attorney] won’t be here and the doctor won’t be here. We just don’t have it written down. In fact, one of my motions in limine is that we not mention settlement with the doctor. The trial court denied the plaintiffs’ motion in limine, and the $250,000 settlement was disclosed to the jury during the trial. During closing argument, defense counsel relied on this evidence to argue:
Four, they have already received or will receive funds from Dr. Keller. When you couple that with the amount that they’ve received or are receiving from the government, it more than equals the amount of money [the plaintiffs’ attorney] has asked you for for care and services. More, greater than.
The trial court then instructed the jury over the plaintiffs’ objection:
[I]n this case, Dr. Keller settled with the plaintiff for $250,000. The hospital is not responsible for any negligence you may find by him. You may still assess a percentage of the responsibility to him despite this resolution. Further, you’re not to consider whether insurance is involved in that.
Thereafter, the jury returned a verdict in favor of the hospital and its two nurses.
The trial court was persuaded to treat the settlement with Dr. Keller in this manner because of the supreme court’s recent decision in Dosdourian v. Carsten, 624 So. 2d 241 (Fla.1993), which prospectively outlawed the use of Mary Carter agreements.1 The court ruled that Mary Carter agreements entered into prior to Dosdourian should be disclosed to the jury, and that the trial court has discretion not to disclose the amount of the settlement if that would unfairly prejudice one of the parties.
Dr. Keller’s settlement agreement with the plaintiffs was not a Mary Carter agreement. Dr. Keller may have remained a nominal party until the settlement was approved by the court, but he played no role in the trial.2 No one has suggested that the settlement was improper or questionable in any manner. Except for the fact that it had not yet been reduced to writing, the settlement was the type of agreement that must not be revealed to the jury under sections 46.015 and 768.041, Florida Statutes (1991).
In many respects, the trial court allowed the defendants to treat Dr. Keller as both a party who had settled and as one who had not. If the defendants’ special jury instruction is correct, and Dr. Keller had settled with the plaintiffs for $250,000 prior to trial, then sections 46.015 and 768.041 would militate against any disclosure of that fact. If he had not settled because of the lack of judicial approval, then he either should have been given notice and opportunity to appear at trial, or, more logically, the option to obtain formal judicial approval of the settlement prior to trial. The disclosure of the amount of this settlement clearly prejudiced the plaintiffs in this ease.3
Because this error requires a new trial, we do not need to reach the issues regarding the admissibility of evidence of Ms. Royal’s receipt of welfare payments prior to her death and her children’s receipt of social security death benefits subsequent to her death. The plaintiffs chose to argue that Ms. Royal received lesser treatment by the hospital because she was a welfare patient. The defendants maintain that the plaintiffs’ argument either opened the door to testimony concerning the amount of these governmental benefits or that the issues were not preserved. Moreover, they argue that the benefits were relevant in a wrongful death case to establish damages for lost support. We are concerned that the admission of evidence describing the amounts of these benefits may have shifted to the jury a function that section 768.76, Florida Statutes (1991), allocates to the judge. See Gormley v. GTE Prods. Corp., 587 So. 2d 455 (Fla.1991). Because the issue was not well addressed during the first trial and trial tactics may differ in a subsequent trial, we decline to rule on the admissibility of this evidence at any future trial. Nevertheless, the trial court and the parties should carefully analyze the admissibility of evidence relating to Ms. Royal’s receipt of welfare payments prior to her death and her children’s receipt of social security death benefits subsequent to her death.
Reversed and remanded for a new trial consistent with this opinion.
DANAHY, A.C.J., and FULMER, J., concur. . See Ward v. Ochoa, 284 So. 2d 385 (Fla.1973); Booth v. Mary Carter Paint Co., 202 So. 2d 8 (Fla. 2d DCA 1967).
. He was treated as a Fabre party. Indeed, footnote 3 in Fabre v. Marin, 623 So. 2d 1182, 1186 (Fla.1993), would appear to explain the method by which this settlement would be allocated in the event of a plaintiff's verdict.
. Although not an issue on appeal, we also note that the juty instruction informing the juiy that the.hospital was not responsible for Dr. Keller's negligence was based on case law that has since been overruled. See JFK Medical Center, Inc. v. Price, 647 So. 2d 833 (Fla.1994) (disapproving Jones v. Gulf Coast Newspapers, Inc., 595 So. 2d 90 (Fla. 2d DCA), review denied, 602 So. 2d 942 (Fla.1992)); Koehler v. Kieffer, 621 So. 2d 681 (Fla. 2d DCA 1993) (relying on Jones).
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Ford Motor Co. v. Hall-Edwards, 971 So. 2d 854 (Fla. 3d DCA 2007)…. Id. Here, throughout the trial, numerous references were made to other cases without laying a foundation for substantial similarity. Moreover, this evidence improperly became a “feature of the trial.” See Peterson v. Morton F. Plant Hosp. Assoc., 656 So. 2d 501, 502-03 (Fla. 2d DCA 1995) (remanding for a new trial because the trial court permitted details of a settlement agreement with a codefendant to become a feature of the trial). Because no foundation was laid establishing a substantial similarity betw…
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Packaging Corp. OF Am. v. DeRYCKE, 49 So. 3d 286 (Fla. 2d DCA 2010)…1109 (Fla. 1st DCA 1994) (reversing and remanding for a new trial because trial court abused its discretion by failing to disclose to the jury plaintiffs settlement with defendant who remained in trial); cf. Peterson v. Morton F. Plant Hosp. Ass’n, 656 So. 2d 501, 503 (Fla. 2d DCA 1995) (holding settlement not yet reduced to writing but where settling defendant remained only nominal defendant and played no role in trial was not Mary Carter agreement that must be disclosed to jury)- The trial court erred in…
Authorities Cited
- Fabre v. Marin, 623 So. 2d 1182 (Fla. 1993)
- Ward v. Ochoa, 284 So. 2d 385 (Fla. 1973)
- Booth v. Mary Carter Paint Co., 202 So. 2d 8 (Fla. 2d DCA 1967)
- State v. Anders, 587 So. 2d 455 (Fla. 1991)
- Gormley v. GTE Prods. Corp., 587 So. 2d 455 (Fla. 1991)
- JFK Med. Ctr., Inc. v. Price, 647 So. 2d 833 (Fla. 1994)
- In re Inquiry Concerning a Judge James E. Lehan-No. 93-224, 624 So. 2d 241 (Fla. 1993)
- Dosdourian v. Carsten, 624 So. 2d 241 (Fla. 1993)
- Jones v. Gulf Coast Newspapers, Inc., 595 So. 2d 90 (Fla. 2d DCA 1992)
- Jeane E. Koebler v. Kieffer, 621 So. 2d 681 (Fla. 2d DCA 1993)