Hospital, Insurer Win $4.1 Million in Suit Over Impaired Doctor

A Louisiana federal jury has awarded a Richland, Wash., hospital $4.1 million on its claim against a doctor's former employers for recommending him, because his allegedly drug-induced negligence left a patient in a permanent vegetative state.

Dr. Robert Lee Berry was the anesthesiologist for a routine tubal ligation procedure.

Plaintiffs Kadlec Medical Center and its insurer, Western Professional Insurance Co., together have already paid the injured patient $7.5 million. If the verdict stands, they will be able to recoup much of the payout.

Lakeview Anesthetic Associates in Covington, La., employed Berry as an anesthesiologist, and he had staff privileges at nearby Lakeview Regional Medical Center.

Lakeview Anesthetic fired Berry in March 2001 for poor recordkeeping and for working while under the influence of narcotics, according to the complaint.

The action said Berry then obtained letters of reference from two former colleagues, Dr. Mark Dennis, a member of Lakeview Regional's board of directors, and Dr. William Preu. Both are partners and shareholders in Lakeview Anesthetic.

Both doctors signed Berry's letter of termination, which said he reported to work "in an impaired physical, mental and emotional state" that "has prevented you from properly performing your duties and puts your patients at significant risk."

Nevertheless, both wrote reference letters calling him "excellent" and recommending him for a job as an anesthesiologist, according to the complaint.

Kadlec said it hired Berry in 2001 because it relied on the letters and a Washington State Department of Health questionnaire that Lakeview Regional had filled out.

The Louisiana hospital did not respond to the health department's questions about whether Berry's staff privileges had ever been restricted and did not disclose his drug use. It merely stated his dates of employment.

In November 2002 Berry was the anesthesiologist at Kadlec for a routine tubal ligation performed on Kim Jones.

According to the complaint, he was impaired by drugs during the surgery, and his negligence caused Jones to suffer extensive brain damage, which left her in a permanent vegetative state.

Jones' family sued Berry and Kadlec for medical malpractice. The case settled for $8.5 million, of which Kadlec and Western paid $7.5 million, according to the complaint.

Kadlec and Western then filed this tort suit in the U.S. District Court for the Eastern District of Louisiana against Lakeview Regional, Lakeview Anesthetic, Dennis and Preu, alleging intentional misrepresentation, negligent misrepresentation, strict responsibility misrepresentation and negligence.

If the defendants had not concealed Berry's drug use and provided letters of recommendation, Kadlec never would have hired Berry, and Jones would not have suffered the tragic injury, the plaintiffs argued.

The jury found that the defendants had committed intentional and negligent misrepresentation, and awarded about $8.2 million in damages.

However, Kadlec and Western will only collect $4.1 million because the jury had found the defendants only 50 percent responsible for the plaintiffs' injuries.

It found Berry and Kadlec 50 percent at fault; however, Kadlec cannot collect damages from Berry because he was not named as a defendant.