Fee Limit for Birth Injury Lawsuit Challenged

The Florida Supreme Court recently agreed to decide the constitutionality of state legislation that limits the amount an attorney can charge in fees. The dispute stems from a birth injury lawsuit filed by a Florida family on behalf of their son, who was born in 1997.

The boy sustained severe brain damage that left him unable to walk or talk. When the mother presented to Lee Memorial Hospital in 1997, a nurse allegedly administered a drug to induce labor. According to allegations, the nurse then neglected to turn off the IV drip, which cut off the supply of oxygen to the baby and allegedly resulted in his severe birth trauma.

Medical malpractice lawsuit

In 2007, a Florida jury found the defendants liable for $31 million in damages. The substantial jury award was intended to compensate the boy for his permanent disabilities and to provide the 24/7 care he will need for the rest of his life. However, at the time of the jury’s decision, Florida had a cap on the amount that could be awarded in medical malpractice cases involving public hospitals, such as Lee Memorial. The cap was $200,000, which would have been a drop in the bucket compared to the costly medical needs of the plaintiff. Reports indicated that the boy, who suffered brain injury at birth, needed a new wheelchair, special education modifications, and a wheelchair-accessible home.

The Florida House of Representatives apparently sympathized with the plight of the family. In 2012, it passed a bill named after the minor child. The bill directed Lee Memorial to pay the plaintiffs $15 million – a little less than half of the original malpractice verdict, but still a substantial amount for the boy’s medical care. The hospital was directed to pay $10 million in a lump sum payment, followed by five yearly payments of $1 million.

Legal fees are the subject of the latest dispute

Part of the 2012 bill passed by Florida lawmakers required that only $100,000 of the total compensation go toward legal fees. The latest dispute in this case involves the attorneys’ objections to the fee limit. They argued that during the years that the case dragged on, the law firm expended more than 7,000 hours working on the case. Along with significant expert witness fees, the firm claims that their total expenditures equaled $500,000. The firm took the case to the 4th District Court of Appeals, arguing that the fee limit was unconstitutional and that they ought to receive $2.5 million in legal fees.

The ruling by the appeals court indicated that while it sympathized with the law firm, the fee limit was upheld. Judge Alan Forst, who wrote the opinion, stated that, “our responsibility in this matter is to ensure that the claims bill passed by the legislative branch of government meets constitutional muster. … [The] Florida Supreme Court, in no uncertain terms, has held that the limitation of attorneys’ fees in a private relief act/claims bill ‘is a constitutionally permissible exercise of legislative authority and does not constitute an impairment of contractual obligations.’” Now, the matter of the constitutionality of the fee limit will be turned over to the Florida Supreme Court.

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