Newman v. Select Specialty Hospital-Arizona, Inc.
239 Ariz. 558
| Ariz. Ct. App. | 2016Background
- In 2008 Ethan Newman became a quadriplegic after an accident and was treated at Select Specialty Hospital (the Hospital); while there his sacral wound progressed to a Stage III pressure sore that required ongoing care and remains symptomatic.
- Newman sued under Arizona’s Adult Protective Services Act (APSA), seeking compensatory and punitive damages, attorney fees, and costs; a jury awarded $250,000 compensatory damages.
- After Newman rested, the superior court granted the Hospital’s motion for judgment as a matter of law (directed verdict) on punitive damages, finding insufficient evidence of an “evil mind.”
- The court awarded Newman $112,500 in attorney fees (rejecting his requested $388,400 as not adequately supported) and awarded only taxable costs under A.R.S. § 12-332 ($16,620 of the $48,544 claimed).
- Both parties appealed; the Court of Appeals reviewed punitive-damages withdrawal de novo, affirmed the fee and costs awards, reversed the directed verdict on punitive damages, and remanded for further proceedings on punitive damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether punitive-damages issue should have been removed from jury (JMOL) | Newman: circumstantial evidence (missed assessments, missed medication, staff awareness of risk) permits a jury to find conscious disregard of substantial risk (evil mind) | Hospital: omissions support liability but not the heightened culpability needed for punitive damages | Reversed: sufficient circumstantial evidence to let jury decide punitive damages; remanded for new proceedings on punitive damages |
| Which statutory version governs award of attorney fees under APSA | Newman: right to fees vested when APSA claim was filed (2009), so earlier statute permitting fees applies | Hospital: right to fees did not vest until verdict/application, so 2012 amendment (no fees) should apply | Held: right is substantive and vests when APSA claim is filed; 2010 (or earlier applicable) version governs; subsequent repeal did not retroactively eliminate vested right |
| Whether trial court abused discretion in amount of attorney fees awarded | Newman: counsel supported fee with itemized application and affidavits; requested $388,400 based on hours and rates | Hospital: challenged reasonableness; court found time records not contemporaneous/trustworthy | Held: affirmed award of $112,500 (contingency contract amount); trial court did not abuse discretion in rejecting reconstructed time entries and claimed hourly rates |
| Scope of "costs of suit" under A.R.S. § 46-455(H)(4) | Newman: statute permits recovery of all litigation expenses incurred in APSA case, not limited to § 12-332 taxable costs | Hospital: costs should be limited to taxable costs per civil cost statutes | Held: "costs of suit" limited to taxable costs as defined in § 12-332; court correctly denied non-taxable expenses (experts, postage, parking, etc.) |
Key Cases Cited
- Rawlings v. Apodaca, 151 Ariz. 149 (recognizes punitive damages require more than tort and an "evil mind")
- Linthicum v. Nationwide Life Ins. Co., 150 Ariz. 326 (defines evil-mind standard: intent to injure or conscious pursuit of conduct knowing it creates substantial risk)
- Barassi v. Matison, 130 Ariz. 418 (premature notice of appeal may be effective when remaining acts are ministerial)
- Brunet v. Murphy, 212 Ariz. 534 (APSA claimant’s statutory rights vest when action is filed)
- Hall v. A.N.R. Freight System, Inc., 149 Ariz. 130 (vesting occurs when right is actually assertable)
- Geller v. Lesk, 230 Ariz. 624 (standard for reviewing fee awards; contemporaneous logs for contingency-fee reasonableness)
- In re Nelson, 207 Ariz. 318 (civil-action costs are limited to taxable costs and jury fees)