- Alice and Dean Duff were awarded a $21.3 million verdict in a medical malpractice lawsuit against Graves Gilbert Clinic in Kentucky.
- Alice received $12 million for her suffering and Dean received $8 million for loss of consortium and for having to give up his career as a funeral director.
- The outcome of a 2013 elective hernia surgery resulted in Alice becoming legally blind.
- Graves Gilbert Clinic filed for Chapter 11 bankruptcy reorganization in December.
- The clinic has appealed the ruling and is expecting a favorable outcome.
Alice and Dean Duff Awarded $21.3 Million Verdict
Alice and Dean Duff were awarded a $21.3 million verdict in a medical malpractice lawsuit against Graves Gilbert Clinic in Kentucky.
The jury determined that Alice should receive $12 million for her suffering and Dean should receive $8 million for loss of consortium and for having to give up his career as a funeral director.
The outcome of a 2013 elective hernia surgery resulted in Alice becoming legally blind.
Graves Gilbert Clinic Files for Chapter 11 Bankruptcy Reorganization
The collection of the verdict was put on hold when the clinic filed for Chapter 11 bankruptcy reorganization in December.
Graves Gilbert Clinic stated that it requires additional space in order to maintain the level of care that the region has come to anticipate.
The clinic has reported total liabilities of $146.3 million and assets of $57.3 million.
Last year, eight officers and directors were paid an average of $983,074 each.
A former Bankruptcy Judge stated that creditors typically receive between 10 and 25 cents on the dollar when plans are approved by the court.
It was also noted that debtors do not need to demonstrate insolvency in order to receive relief, but must demonstrate that they are filing Chapter 11 in a manner that is considered to be “good faith”.
Clinic Appeals Ruling and Releases Statements
The clinic has appealed the ruling and is expecting a favorable outcome.
It released two statements in an attempt to explain its filing.
The first statement did not include an apology to the Duffs or any admission of fault.
The second statement included an apology and stated that the damages the jury awarded to the Duff were “excessive”.
The trial was postponed for nine years due to the recusal of the initial judge and later due to the global health crisis.
Clinic Explains Bankruptcy Filing
Under Chapter 11 of the Bankruptcy Code, a business requests permission from a bankruptcy judge to reorganize its debts with its creditors, allowing it to remain in operation.
The clinic announced that it had filed for reorganization under the protection of the bankruptcy code, citing that there had been an increase in what the legal community refers to as ‘nuclear verdicts’ in the two years since the pandemic was declared, compared to the two years prior.
The Kentucky Trial Court Review reported that there were three nuclear verdicts in the two years before the pandemic was declared and four in the two years after.
The clinic stated that it was not a large, corporate entity that had come to the area with the intention of making a profit.
It expressed its condolences for the Duff family’s experience with severe medical issues.
The only indication of the bankruptcy filing at Gilbert Graves’ main clinic was a sign in the lobby and a restroom that read: “OPERATIONS CONTINUING AS NORMAL.”.