Rashidi v. Moser
60 Cal. 4th 718
Cal.2014Background
- Plaintiff Hamid Rashidi underwent embolization surgery and became permanently blind in one eye; he sued surgeon Franklin Moser, Cedars‑Sinai, and Biosphere Medical.
- Rashidi settled pretrial with Biosphere Medical for $2,000,000 and Cedars‑Sinai for $350,000; trial proceeded against Moser only.
- Jury awarded $125,000 (economic), $331,250 (past noneconomic), and $993,750 (future noneconomic); court reduced total noneconomic award to $250,000 under MICRA (Civ. Code § 3333.2).
- Moser sought offsets for the pretrial settlements against both economic and noneconomic awards; trial court denied offsets for noneconomic portion because Moser failed to prove settling defendants’ comparative fault.
- Court of Appeal allowed a setoff against noneconomic damages (reducing Rashidi’s noneconomic recovery below MICRA’s $250,000 cap) by allocating portions of the Cedars‑Sinai settlement to noneconomic losses.
- California Supreme Court granted review limited to whether MICRA’s noneconomic cap permits posttrial setoff of settlement dollars when the nonsettling defendant did not prove settling defendants’ fault.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether MICRA’s $250,000 cap on noneconomic "damages" applies to settlement recoveries (i.e., can settlements be used to reduce a postverdict MICRA‑capped award?) | "Losses" in §3333.2(a) is broader than "damages" in §3333.2(b); settlement dollars are not court‑ordered "damages," so the cap (b) applies only to judgments, not settlements. | §3333.2(a) and (b) refer to the same total recovery; allowing settlements to exceed $250,000 undermines MICRA’s purpose and lets plaintiffs recover more than the statutory cap. | Held for Rashidi: the MICRA cap on noneconomic "damages" applies to judicial awards, not settlement proceeds; settlements are not reduced by §3333.2(b). |
| Whether a nonsettling defendant may obtain a setoff against noneconomic damages when he fails to prove the comparative fault of settling health care providers (intersection of MICRA with §1431.2 several liability rule) | Allowing setoff without proof of settling defendants’ fault would let a nonsettling defendant avoid liability for noneconomic damages for which he is solely liable under §1431.2. | Allowing setoff ensures total noneconomic recovery for plaintiff does not exceed MICRA cap and prevents plaintiffs from circumventing MICRA by settling with one provider and going to trial with another. | Held for Rashidi: §1431.2’s several liability regime stands; absent proof of co‑defendant fault, a nonsettling defendant cannot offset settlements against noneconomic damages for which he is solely liable. |
Key Cases Cited
- DaFonte v. Up‑right, Inc., 2 Cal.4th 593 (1992) (noneconomic damages are several under comparative‑fault scheme)
- Evangelatos v. Superior Court, 44 Cal.3d 1188 (1988) (each defendant liable for noneconomic damages only in proportion to fault)
- Espinoza v. Machonga, 9 Cal.App.4th 268 (1992) (postverdict allocation method to apportion settlements between economic and noneconomic components)
- Ehret v. Congoleum Corp., 73 Cal.App.4th 1308 (1999) (settlement allocation principles when settlements do not specify economic vs. noneconomic recovery)
- Fein v. Permanente Medical Group, 38 Cal.3d 137 (1985) (upholding MICRA cap; legislative purpose concerned with unpredictable jury awards)
- Hoch v. Allied‑Signal, Inc., 24 Cal.App.4th 48 (1994) (settlement dollars may exceed jury award; settlements reflect risk‑avoidance value)
- County of San Diego v. Ace Property & Casualty Ins. Co., 37 Cal.4th 406 (2005) ("damages" as a term traditionally denotes amounts ordered by a court)