Court Affirms Order Requiring Future Custodial Care Payments Into SNT

A Louisiana appeals court finds no merit to the Louisiana Patients' Compensation Fund arguments that it was not required to make prospective payments for medical and custodial care or that making the payments into a special needs trust was inappropriate. Watkins v. Barry (La. Ct. App., 3d, No. 06-858, Dec. 6, 2006).

During his birth, Dustin Watkins sustained an in utero stroke that left him with permanent debilitating injuries. His mother, Tina Watkins, sued the obstetrician, Dr. Richard Barry, and the hospital for medical malpractice. Following a trial, judgment was entered against Dr. Barry and the Patients' Compensation Fund (PCF) and included damages for Dustin's life-long prospective care itemized at more than $6 million. Dr. Barry paid his portion of the judgment while the PCF appealed.

On appeal, the judgment was affirmed and supervisory writs were denied. Following Ms. Watkins demand for payment, the PCF paid the judgment up to the trial date but refused to pay for any prospective care unless Ms. Watkins submitted itemized bills for the care, and refused to make payments into a special needs trust. The PCF contended that expenses are payable to a plaintiff only after the service has been provided, a bill has been submitted, and the PCF has reviewed it within thirty days of receipt. Ms. Watkins petitioned the court to compel the payments and once again, the court found for her and ordered the PCF to make quarterly prospective payments pursuant to the original court order. The PCF appealed, also arguing that because Ms. Watkins is providing the custodial care to Dustin personally, she is attempting to circumvent tax and Medicaid laws by seeking payment to the special needs trust.

The Louisiana Court of Appeals affirms, finding that the original judgment established both the need and amount of future expenses and that the PCF was statutorily obligated to pay future medical expenses despite its "quibbl[ing]" over one word in the court's order. The court orders the PCF to make payments into the special needs trust, ruling that the PCF's intimation that Ms. Watkins was attempting fraud was groundless and that the PCF has recourse to the district court if fraud is suspected.

To download the full text of this decision in PDF format, go to: https://www.la3circuit.org/opinions/2006/12/120606/06-0858opi.pdf .
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