Aidan Ming-Ho Leung v. Verdugo Hills Hospital
55 Cal. 4th 291
| Cal. | 2012Background
- Aidan Leung, born prematurely with brain injury, sues pediatrician and Verdugo Hills Hospital.
- Settlement with the pediatrician for $1 million (policy cap) precedes trial; pediatrician released from liability.
- Jury allocates 55% fault to pediatrician, 40% to hospital, 5% to parents; hospital liable for most economic damages.
- Court of Appeal applied the common law release rule to bar hospital’s economic damages, despite criticism in prior decisions.
- California Supreme Court overrules the release rule, abrogating the rule in favor of fair apportionment.
- Issues include how to apportion liability when a settlement is not in good faith and how causation was proven against the hospital.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the common law release rule abrogated? | Leung argues the rule should be abandoned. | Hospital contends the rule remains binding due to stare decisis. | Yes; the common law release rule is overruled. |
| Which apportionment method applies when a settlement is not in good faith? | Plaintiff favors setoff with contribution. | Hospital advocates proportionate-share; settlement not made in good faith. | Setoff-with-contribution adopted; proportionate-share rejected. |
| Did the hospital's negligence cause plaintiff's injury? | Evidence shows hospital breached Joint Commission guidance and patient education. | Hospital did not practice medicine; argues causation should be expert-driven. | Evidence supports hospital as a legal cause of injury. |
Key Cases Cited
- Tech-Bilt, Inc. v. Woodward-Clyde & Associates, 38 Cal.3d 488 (Cal. 1985) (good faith settlement standard; proportional liability context)
- American Motorcycle Assn. v. Superior Court, 20 Cal.3d 578 (Cal. 1978) (joint and several liability; apportionment principles)
- Kincheloe v. Retail Credit Co., Inc., 4 Cal.2d 21 (Cal. 1935) (releases vs covenants not to sue; artificial distinction rejected)
- Pellett v. Sonotone Corp., 26 Cal.2d 705 (Cal. 1945) (release vs covenant; finality of settlement effects)
- Lamoreux v. San Diego etc. Ry. Co., 48 Cal.2d 617 (Cal. 1957) (early articulation of joint liability principles)
- McDermott, Inc. v. AmClyde, 511 U.S. 202 (U.S. Supreme Court 1994) (proportionate-share method; pretrial settlements context)
- Mejia v. Community Hospital of San Bernardino, 99 Cal.App.4th 1448 (Cal. App. 2002) (hospitals as liable “facility” providers under negligence)
- Raven H. v. Gamette, 157 Cal.App.4th 1017 (Cal. App. 2007) (causation standard in medical negligence cases)
- Flowers v. Torrance Memorial Hospital Medical Center, 8 Cal.4th 992 (Cal. 1994) (standard of care; expert testimony considerations)
- Mejia, supra, 99 Cal.App.4th 1448 (Cal. App. 2002) (hospitals’ liability for negligent care facilities)