January 15, 2007
Largest Verdicts & Settlements 2006
Arbitration awards above $1 million
1. $40-$50 MILLION
O'Connell v. MassMutual
American Arbitration Association, AAA Matter No. 11-116-Y0136205
Date of award: Sept. 22, 2006
Plaintiff's counsel: Michael B. Keating, Foley Hoag, Boston
MassMutual dismissed its CEO "for cause," claiming he had padded a retirement account by millions of dollars and conducted an affair with an employee. Following an investigation, a panel of arbitrators found that the CEO should not have been terminated for cause, that his actions did not materially affect the company, and that he should be entitled to nearly $50 million as his contract stated. Suffolk Superior Court Judge Allan van Gestel dismissed MassMutual's lawsuit to overturn the arbitration ruling.
2. $2.28 MILLION
Case name withheld
Date of award: January 2006
Plaintiff's counsel: Patrick T. Jones and Donna R. Corcoran, Cooley, Manion, Jones, Boston
The plaintiff asked for pain medication while in labor and was given Nubain, despite the absence of a reassuring fetal heart tracing. The newborn was delivered by Caesarean section, diagnosed with hypoxic ischemic encephalopathy, and developed neonatal seizures secondary to hypoxic ischemic injury with decreased hematocrit, hypotension, hypoglycemia and metabolic acidosis. The plaintiffs claimed the negligence of the defendants caused the baby to suffer in utero hypoxic ischemic encephalopathy, consequent cerebral palsy and severe permanent sequelae. The arbitrator found the defendant obstetrician negligent, exonerated the defendant obstetrical nurse and awarded $2.28 million. After further negotiations, the case settled for $2.74 million.
3. $1.93 MILLION
($2 million with interest)
Case name withheld
Date of award: September 2006
Plaintiff's counsel: Patrick T. Jones and Donna R. Corcoran, Cooley, Manion, Jones, Boston
The plaintiff underwent an elective laparoscopic mesenteric lymph node biopsy by the defendant doctor. It was noted that there was a bleeding vessel that required multiple hemoclips to control. The plaintiff claimed the defendant negligently placed multiple clips in the area of the arteries and veins supplying the intestines, cutting off the blood supply to the plaintiff's bowel. The plaintiff then developed central abdominal pain and other symptoms. The plaintiff went back and forth to the hospital with complaints and ultimately had surgery to remove a section of his bowel. The plaintiff claimed the defendant negligently failed to repair the bowel and as a result his condition continued to deteriorate. The plaintiff's expert testified that because of the defendant's substandard care, the plaintiff would suffer permanently from the effects of short bowel syndrome and would be at greater risk for development of intestinal obstruction and abdominal hernias.
4. $1.7 MILLION
Leporini, et al. v. First Union Securities (Wachovia), et al.
NASD Arbitration, No. 04-08079
Date of award: April 13, 2006
Plaintiffs' counsel: Michael A. Collora, Dwyer & Collora, Boston
Five related customers of a stock broker followed him from Paine Webber to First Albany, then to First Union (Wachovia) and later to Fechtor Detwiler. The plaintiffs sued both First Albany and First Union for churning their accounts, and, in First Union's case, also for buying unsuitable securities in all accounts. Losses at First Union were more than $2 million. Both brokerage houses filed motions to dismiss on statute of limitations grounds, which were denied. First Albany then settled. Wachovia initially refused to settle, then offered increasing sums, eventually reaching $1.5 million. Those offers were rejected. Evidence indicated the opening account forms, filled out by the broker, were misleading. An expert said the turnover was excessive and most of the purchases were in a field inappropriate for the family members.
5. $1.5 MILLION
($1.35 million, minor plaintiff; $75,000, each parent; $2.1 million with interest)
Suffolk Superior Court, no. withheld
Date of award: February 2006
Plaintiffs' counsel: Elizabeth N. Mulvey and Florence A. Carey, Crowe & Mulvey, Boston
The minor plaintiff was discharged from the hospital when he was 2 days old, slightly jaundiced and with a mild bilirubin elevation. He became lethargic, more jaundiced and began to nurse poorly. He developed a rash and his bilirubin increased. The minor plaintiff was seen by an on-duty pediatrician who consulted with a covering pediatrician, and they agreed that it was safe to discharge the minor plaintiff home. The minor plaintiff continued to feed poorly and became increasingly lethargic. A home phototherapy technician was instructed to proceed with phototherapy. The minor plaintiff eventually suffered a seizure. Blood cultures showed a coagulase-negative staph. His head growth started to decline, and he was eventually diagnosed with developmental delays. The plaintiffs claimed that the defendants failed to do a septic workup for infection, failed to administer antibiotics to treat a presumed bacterial infection, and further failed to provide supportive care.