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Med Mal News

Insurer Agrees to Pay Nearly $3 Million Above Policy Limits

Apparently concerned that it had left itself open to a medical provider's bad-faith suit, Georgia's MAG Mutual Insurance has agreed to pay a winning plaintiff the full $4.9 million judgment awarded, in spite of the fact that the clinic's combined insurance policies with the company placed a $2 million ceiling on its liability.

The medical malpractice case was brought by the family of Ok Hui Smith, a Korean War refugee who married an American soldier, became an American citizen and raised a family with him. At the age of 78, Smith sought treatment from her primary care physician for a toenail fungus. Her doctor prescribed Nizoral, a potent drug that, according to the FDA, should not be used to treat mild fungus complaints because of its potential for causing liver problems. Smith had been taking the drug for 4 ' months when her liver and kidneys failed; her doctor had checked her liver function just once during treatment. The doctor admitted his fault and a jury was asked only to decide damages. The defense asserted that, because of the decedent's advanced age, damages should be lowered, but the plaintiff side argued quality of life. David Krugler, the Smith family's attorney, explained: “Mrs. Smith was an extraordinary person. She learned English, became a U.S. citizen, became a master seamstress, gardener, cook. … We believed strongly in the family and the case. We knew the jury would get the value of this woman's life and that the loss of that life was really tremendous. They got it.”

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