Numerous states, including Wisconsin and Georgia, have enacted statutes that limit the amount of non-economic damages a plaintiff can recover in a medical malpractice action. In addition to economic damages, juries can award plaintiffs damages for emotional injuries, like loss of consortium or loss of companionship, but in states that have passed legislation capping the amount of recovery, the decision is essentially removed from the jurors’ hands and placed in the hands of legislators. Lawmakers generally defend damages caps on the grounds that it contains the cost of healthcare by discouraging “defensive medicine.” However, the recent ruling out of the Wisconsin 1st District Court of Appeals found that the cap violated the Equal Protection Clause of the Constitution, as the cap allowed for full awards for less injured patients, but resulted in reduced awards for the catastrophically injured.
Conversely, doctors and insurers will be inherently opposed to the ruling, as without a cap on non-economic damages their liability, and thus costs of seeking protection from that liability in the form of medical malpractice insurance, will rise. In deciding whether to enact recovery limits, the state legislatures must balance the interests of keeping the cost of healthcare low with allowing plaintiffs to fully recover for harm caused by the negligence of doctors. One important consideration is to whom should the burden of offsetting the costs of those mistakes fall; the party making the mistakes, or the victims? Where recovery limits are imposed, the doctors are not forced to bear the full risk of their own negligence, as they are protected by statute, no matter how egregious their errors or omissions may be. It seems natural that the doctors, who stand to benefit from the transaction if successful, should then bear the risk of complete liability for any harms caused during that transaction, whether emotional or otherwise. The rationale that the recovery limits somehow keep the costs of healthcare low are speculative at best, as even though states have maintained recovery limits health insurance premiums have risen. Admittedly, increases in healthcare prices are more directly tied to the controversial Affordable Care Act, but without a significant and legitimate showing that recovery limits somehow benefit the public, how can the state legislatures continue justify the caps? If caps do not keep the prices of healthcare down, the insurance providers and doctors are benefitting at the expense of injured plaintiffs.
The attorneys from the case have already publicly stated that they will ask the Wisconsin Supreme Court to hear the case, and depending on the Court’s ruling, it could become nationally significant in the near future. If the Wisconsin Supreme Court bases its finding under an interpretation of the United States Constitution, the United States Supreme Court will then be able to review the case. However, if the Wisconsin Supreme Court declines to make an interpretation based on the United States Constitution or Federal Law, the United States Supreme Court will likely abstain, as it does not generally review lower-court rulings based upon adequate and independent state grounds.