Is There a Cap on Medical Malpractice Damage Awards in Tennessee?

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In 2011, Tennessee legislators ushered in “caps” to damages in civil cases in Tennessee. They insisted that a cap of $750,000 on non-economic damages would enable Tennessee business interests to better predict their civil damage exposure. Further, they would give Tennessee a competitive edge in attracting new business interests to the state. A cap of $500,000 on punitive damages was also instituted, regardless of whether or not such damage would effectively serve to punish or deter the particular wrongdoer. The law also provides that the jury is never to be told that caps exist. Rather, after a jury’s verdict is read and politely excused, the judge must reduce the jury’s verdict to the cap.

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How Tennessee’s Medical Malpractice Caps Work

How do these caps work in practice? Consider the case of a hypothetical retired school teacher named Charlotte. Charlotte worked as a school teacher for 30 years. Her husband passed away due to cancer when he was 70 years old, just as Charlotte was retiring from the school system. They had hoped to enjoy retirement together but his cancer left Charlotte a widow.

Charlotte, now alone, begins collecting Social Security at age 62. She is a talented artist and loves reading and writing poetry. She loves music and the arts. None of her interests make her any money, but she finds ways to scrape by on her Social Security and spend special time with friends and family.

Charlotte needs a surgery on her right knee. The day before the surgery, she is admitted into the hospital and undergoes some preoperative testing, including a plain film chest x-ray to look for pneumonia. The radiologist sees no contraindications for surgery, but notes a suspicious lesion in the lung that he believes should be tested for cancer. While this report is sent to the doctor responsible for Charlotte’s care while in the hospital, he does nothing to order additional testing on the suspicious lesion. More importantly, he fails to specifically notify Charlotte’s primary care physician of the need for follow up, so when Charlotte is discharged from the hospital after successful knee surgery, she believes that all is well.

Nine months later, Charlotte experiences acute onset of back pain. Testing reveals lung cancer has grown and metastasized to the spine and brain. Had Charlotte been told of the suspicious lesion and had the cancer been treated soon after it was seen by the radiologist, she would have survived. Charlotte dies within a month, leaving children, grandchildren, and friends to mourn her loss.

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The “Value” of a Life

Charlotte has very little in medical expenses, because hospice was called almost immediately after her diagnosis. She has no lost wages. Effectively then, the value of her life is made up entirely of what is referred to as “non-economic damages.” In this hypothetical case, non-economic damages are the injuries suffered by her children due to the loss of Charlottes’ comfort, affection, and love.

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In Tennessee, Charlotte’s case can be tried before a jury. If the jury finds that medical care breached the standard of care, the jury can award damages. Here, a jury could easily award surviving children several millions of dollars to account for the loss of Charlotte, who could have lived for decades, providing immeasurable love and companionship to her family.

If the jury were to award, say, two million dollars for this claim, they would be politely thanked by the judge and released from their service. However, after the jury has been excused, but before the surviving children leave the courtroom, the judge would reduce the jury’s award to the maximum non-economic damage in Tennessee, or $750,000.00. So, not only has the legislature decided that the value of human life in these cases is limited to $750,000.00, they have also decided that the jury must be kept in the dark about the cap.

Verdicts & Settlements

A Medical Malpractice Settlement Will Likely Be Much Lower

An observation: $750,000 is a lot of money. But to Charlotte’s family, $750,000 is a shockingly small amount to represent all that Charlotte was and all that Charlotte meant to her family. Keep in mind, that in order to get the cap, one almost assuredly has to try the case. In a medical malpractice setting, that often means spending $50,000 to $150,000 or more, rendering the cost versus benefits of proceeding to trial questionable at best.

If any effort is made to settle the case, the defendants’ insurance companies will usually pay less than their worst day in court. Doing what is “right” does not motivate the insurance company. The decision about whether and how much to pay is a business decision, based on perceived exposure if the case is tried. So, if they know a judge must reduce a large verdict to $750,000.00, the insurance companies will not typically authorize a settlement that gets anywhere near that figure.

What Is Tennessee’s Medical Malpractice Damage Cap?

There are three types of damages you might be able to seek following medical malpractice in Tennessee:

  • Economic Damages
  • Non-Economic Damages
  • Punitive Damages

Economic damages cover tangible costs and losses, such as medical expenses, lost wages, diminished earning capacity, and similar concerns. In Tennessee, there is no cap on economic damages.

The Tennessee Civil Justice Act of 2011 places caps on:

  • Non-Economic Damages. These cover issues including pain and suffering, loss of enjoyment in life, forced changes to lifestyle, disfigurement, and loss of consortium. In medical malpractice cases in Tennessee, non-economic damages are typically capped at $750,000.
  • Catastrophic Injury Exception. For specific injuries, such as spinal cord injuries that result in paraplegia, amputation, extensive burns, or the wrongful death of a parent of a minor child, the medical malpractice damage cap may be increased to $1 million.

Punitive Damages. These are intended to punish fraudulent, reckless, or intentionally harmful actions. In Tennessee, punitive damages are capped at two times the compensatory award (economic damages + non-economic damages) or $500,000, whichever is greater.

Are There Exceptions to Tennessee’s Medical Malpractice Damage Cap?

The medical malpractice damage cap in Tennessee is almost always a factor when seeking compensation for harm caused by a healthcare provider. However, there are some situations where this cap can be exceeded.

Tennessee’s non-economic medical malpractice damage cap does not apply if your healthcare provider:

  • Destroys or Falsifies Records. Intentional alteration or destruction of records to evade liability.
  • Acted With Intentional Misconduct. Intentional infliction of serious physical injury.
  • Was Intoxicated. Under the influence of drugs or alcohol at the time malpractice occurred.

It is uncommon, but not impossible, for the medical malpractice damage cap to be lifted. The details of your case—including how you were injured and the consequences of your injuries—will influence how your case is built and play a role in whether you may be eligible for an exception.

Is the Medical Malpractice Damage Cap in Tennessee Different in Cases Involving Healthcare Workers Employed by the State?

Medical malpractice damage caps involving government-employed healthcare providers are not included in the Tennessee Civil Justice Act of 2011. Instead, they can be found in the Tennessee Governmental Tort Liability Act (GTLA), which imposes much lower caps on medical malpractice claims.

Here’s how things differ under the GTLA:

  • Caps on Economic and Non-Economic Damages. When a government entity’s immunity is waived, its liability for damages—both economic and non-economic—is capped at $300,000 per injured plaintiff and $700,000 total per occurrence.
  • Punitive Damages. Punitive damages cannot be sought in cases involving government-employed healthcare providers. The medical malpractice damage cap for punitive damages against a government entity in Tennessee is $0.

If a medical malpractice claim is brought against a healthcare practitioner employed by the State, the practitioner can be held individually liable if damages exceed the government entity’s liability limits. While very rare, this might occur when a practitioner acts outside the scope of their employment or engages in willful, malicious, or criminal actions.

Does the Medical Malpractice Damage Cap Factor Into How a Case Proceeds?

Damage caps can play a role in whether a medical malpractice case settles or goes to trial. Because non-economic damages are capped no matter how devastating the injury or loss, recovery is limited from the outset. If the economic costs are modest, the limited non-economic recovery may not justify the expense or emotional toll of trial. On the other hand, if damages are excessive or expected to continue accruing (if you are unable to work for extended periods, for example), it may make more sense to go to trial despite the cap.

Medical malpractice claims are often settled during the negotiation process. When handled by an experienced lawyer, these can result in significant compensation for victims of injury. However, when defendants attempt to minimize compensation unfairly, it may be necessary to proceed to trial. This makes it very important to choose an attorney who is proven both in and out of the courtroom. Some cases must proceed to trial because physicians can force cases to trial even if their malpractice insurer wants to settle. Other cases go to trial because the community in which the malpractice occurs has shown a reluctance to hold healthcare providers accountable.

Not all lawyers are comfortable in court. The lawyers at The Haynes Firm have been recognized by the National Trial Lawyers Association, Super Lawyers, Best Lawyers, and others for their success in negotiations and trial settings.

Can a Jury Award Exceed Tennessee’s Medical Malpractice Damage Cap?

Yes! A jury in Tennessee can award more than $750,000 in non-economic damages if it believes the plaintiff’s harm justifies a higher amount. The jury is not informed of the cap on damages. However, under Tennessee Code Annotated § 29-39-102, the trial judge is legally required to reduce the amount to the statutory cap of $750,000 during post-trial proceedings.

In practical terms, this means that even if a jury awards $2 million in non-economic damages, the final judgment entered by the court will only reflect $750,000 unless an exception to the cap applies.

Importantly, the jury is not informed that a medical malpractice damage cap exists. This means that jurors may deliver what they believe to be a fair and appropriate award, only to have that number reduced by the court afterward. Tennessee lawmakers did not want the presence of the cap to influence jury deliberations.

What Is the Rationale Behind the Medical Malpractice Damage Cap in Tennessee?

Lawmakers introduced Tennessee’s medical malpractice damage cap as a way to create predictability for businesses and reduce malpractice insurance costs. The idea was that by capping compensatory damages, the state could attract more healthcare providers and keep medical costs down. The truth of the matter is, these caps actually accomplish the exact opposite.

Medical malpractice damage caps don’t stop malpractice, they stop accountability. Non-economic damages are where the true human cost of a serious injury lies. Capping those at an arbitrary number devalues what victims have actually lost and reduces justice to a spreadsheet calculation. Having an attorney on your side helps ensure you pursue maximum compensation.

Your lawyer can evaluate your damages, calculate a fair settlement, and fight for every penny you are due. While your damages may be capped, with the help of a medical malpractice lawyer, you will be better equipped to seek the full compensation you are entitled to under the law.

Injured? We Are Here To Help.

Our firm has seen first-hand how the damage caps can prevent families from obtaining anything close to justice. Our goal is to do everything that we can ethically and legally do to obtain justice for our clients and their families. Damage caps make this goal more difficult to achieve. However, we will never stop fighting.

If you or a loved one has been injured due to another’s wrongdoing, the Johnson City medical malpractice attorneys at The Haynes Firm are ready to put their experience and reputation to work for you.

Call our Johnson City attorneys at

423-928-0165

or contact us online today to Schedule your free consultation today.

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