Opinion handed down July 31, 2012
Deborah
Watts filed a medical malpractice suit against Cox Medical Centers after her
son, Naython Watts, was born with disabling brain injuries. After the jury returned a verdict in favor of
Watts for $1.45 million in non-economic damages and $3.371 million in future
medical damages, the trial court entered a judgment reducing Watts’
non-economic damages to $350,000 as required by RSMo 538.210. The court also established a periodic payment
schedule requiring immediate payment of half of all net future medical damages
with the other half paid in equal annual installments over the next 50 years
with an interest rate of 0.26 percent pursuant to RSMo 538.220. Watts appealed to the Supreme Court of
Missouri alleging that RSMo 538.220 violates, among others, the right to trial
by jury provision of the Missouri Constitution and that the periodic payment
schedule established by the court did not assure full compensation due to the
low interest rate and 50-year payment.
Cox filed a cross-appeal asserting that the trial court erred in its
immediate award of half of future medical damages. The Missouri Supreme Court reversed and
remanded, holding that section 538.210 is unconstitutional, that the trial
court abused its discretion when entering the periodic payment schedule, and
that section 538.220 gives the judge the authority to determine the manner in
which future damages shall be paid.