CopyCited 2 times | Published | Court of Appeals for the Eleventh Circuit
...In those situations,
courts must approximate the statutory remedy as closely as they can to achieve the
ends required by the FTCA.
Here, we review the district court’s efforts in improvising application of
Florida’s medical-malpractice-damages statute, section 768.78(2) of the Florida
Statutes, to Appellant-Cross-Appellee United States....
...federal health facility caused Plaintiffs-Appellees-Cross-Appellants’ son E.R.T., Jr.
(“E.R.T.”), to suffer severe and life-altering injuries at the time of his birth. On
appeal, the government challenges the district court’s application of section
768.78(2) to the method of payment the district court chose for the government to
satisfy the judgment against it. Plaintiffs, meanwhile, cross-appeal the district
court’s jerry-rigging of section 768.78(2)’s bond requirement as the court found it
pertains to the United States....
...sent money value of
$13,860,943.91.
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The district court then had to decide how any damages awarded should be
paid. Section 768.78(2) of the Florida Statutes allows a defendant in a medical-
malpractice case to make payment of future economic damages either by lump-
sum payment for all damages, with future economic damages and expenses
reduced to present value, or by periodic payments. Fla. Stat. § 768.78(2). If a
party chooses to make periodic payments, the amount of the payments “shall equal
the dollar amount of all future damages before any reduction to present value.”
Fla. Stat. § 768.78(2)(b)(1). A party who wishes to make periodic payments must
post a bond or other security to ensure full payment of the damages awarded. Id. at
§ 768.78(2)(b)(2).
Invoking this statute, the United States requested that any future-economic-
damages award to Plaintiff be paid in periodic payments, rather than a lump-sum
payment....
...to Plaintiffs. But it denied the
government’s plea for a reversionary interest in the monies the government
deposited. Nevertheless, the district court agreed that the government’s deposit of
the total award in the trust served the purpose of section 768.78’s bond
requirement, so it did not require the United States to pay a bond.
But the United States later suggested that its agreement to pay the full award
was qualified, based on the availability of government funds for that...
...horize periodic payments in the
absence of “a bond, security or adequate assurance of ‘full payment,’” Fla. Stat. §
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768.78, and where the government did not immediately make “full payment,” id.,
of economic damages in trust, following the entry of judgment. Essentially,
Plaintiffs assert that the district court could adopt the periodic-payment method
that section 768.78 authorizes only if it also imposed all of the rest of the section’s
requirements—full payment or the payment of security guaranteeing full
payment—on the government. To resolve this issue, we must consider whether the
FTCA—the source of the district court’s authority to apply section 768.78—
allowed the district court’s departure from the strict application of section 768.78.
We begin by examining the FTCA....
...§ 2674.
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As we have noted, the government contended in the district court that the
court could allow the government to make periodic payments by borrowing that
remedy from section 768.78(2)(a)(2)....
...these losses shall be made by one of the following means:
2. The court shall, at the request of either party, enter a judgment
ordering future economic damages, as itemized pursuant to s.
768.77,
to be paid by periodic payments rather than lump sum.
Fla. Stat. §
768.78(2)(a)(2). Plaintiffs, however, retort that another aspect of
section
768.78(2)—subsection (b)—precludes periodic payments in the absence of
the posting of security for the full award....
...If the
defendant is unable to adequately assure full payment of the damages,
all damages, reduced to present value, shall be paid to the claimant in
a lump sum. . . . Upon termination of periodic payments, the security,
or so much as remains, shall be returned to the defendant.
Fla. Stat. § 768.78(2)(b)(2).
Upon review of these two portions of section 768.78(2), we agree with
Plaintiffs that, as a general matter, this statute’s use of the mandatory “shall”
requires the posting of security if periodic payments are authorized....
...pproximate” the results of state
statutes, we must consider whether the district court’s resolution of the security
issue effectively served the same purpose as the statute’s security requirement. We
find that it did.
The purpose of section 768.78(b)(2)’s security requirement is to guarantee
payments to the plaintiff, in case a defendant making periodic payments
experiences economic-insolvency problems down the road....
...(“The
defendant shall be required to post a bond or security or otherwise to assure full
payment of these damages awarded.”) (emphasis added). So as long as the district
court ensured that all periodic payments would be made, it approximated the
results of section 768.78(b)(2). Here, the district court accounted for section
768.78(b)(2)’s concern when it noted that the government would be making full
payment into the trust for the later dispensing of periodic payments to Plaintiffs.
That action in and of itself ensured full payment to Plaintiffs....
...uture economic
damages remaining in the trust if E.R.T. dies prematurely. To resolve this issue,
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we begin with the language of section 768.78....
...If the statutory text is “clear and
unambiguous and conveys a clear and definite meaning,” our task also ends with
the language. Diamond Aircraft Indus., Inc. v. Horowitch,
107 So. 3d 362, 367
(Fla. 2013) (citation and quotation marks omitted).
We find the language of section
768.78(2) to clearly and unambiguously
require payment of the full future-economic-damages award, regardless of whether
the intended recipient dies before the end of the period for which damages are
awarded....
...If the
defendant is unable to adequately assure full payment of the damages,
all damages, reduced to present value, shall be paid to the claimant in
a lump sum. . . . Upon termination of periodic payments, the security,
or so much as remains, shall be returned to the defendant.
...
Fla. Stat. § 768.78(2) (emphasis added).
First, as we have noted, section 768.78(2) applies when “the trier of fact
makes an award to compensate the claimant for future economic losses.” Id. §
768.78(2)(a). That is a one-time occurrence at the end of the fact-finding
process—before the trier of fact can possibly know whether the claimant will
actually live the expected lifespan and incur all future economic losses anticipated.
Section 768.78(2) then sets forth two alternative ways of making “payment of
amounts intended to compensate the claimant for these losses.” Id....
...In actuality, the
claimant may die before receiving the entire award or may outlive the award and
incur losses for which the award does not account. But had the Florida legislature
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wished for section 768.78(2) to award only actual future economic damages, we
expect it would have omitted the word “intended” and written the section to read,
“payment of amounts to compensate the claimant for these losses.”
Second, subsection (2)(a)(1) bolsters this conclusion. It states that “[t]he
defendant may make a lump-sum payment for all damages so assessed . . . .” Fla.
Stat. § 768.78(2)(a)(1) (emphasis added). “So assessed” refers to the “award to
compensate the claimant for future economic losses” described in section
768.78(2)(a). See id. at § 768.78(2)(a)....
...conomic damages, that award was
“assessed,” or “charged.” It was not subject to revision.
Third, subsection (2)(a)(2) authorizes the award of future economic damages
“to be paid by periodic payments rather than lump sum.” Id. at § 768.78(2)(a)(2)
(emphasis added)....
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Fourth, subsection (2)(b)(1) requires the “total dollar amount of the periodic
payments [to] equal the dollar amount of all [assessed] future damages before any
reduction to present value.” Id. at § 768.78(2)(b)(2) (emphasis added)....
...economic damages, regardless of whether the defendant does so by lump sum or
by periodic payment.
Fifth, subsection (2)(b)(2) requires the posting of security when a defendant
chooses to make periodic payments “to assure full payment of these damages
awarded.” Id. at § 768.78(2)(b)(2) (emphasis added). So section 768.78(2)(b)(2)
recognizes both that the total of all periodic payments is “awarded” at the time the
factfinder makes the award of future economic damages and that “full payment” of
the amount “awarded” is required....
...reduced to present value, shall be paid to the claimant in a lump sum.” Id.
(emphasis added). Once again, the statute equates the total value of all periodic
payments with the present value of a lump-sum payment.
And notably, no aspect of section 768.78(2) provides for any kind of
reduction to the factfinder’s award of future economic damages....
...In fact, other than reduction to
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present value, the statute does not allow for adjustments of any kind to the actual
damages award.
Therefore, we conclude that the text of section 768.78(2) clearly and
unambiguously precludes the award of a reversionary interest should the claimant
die before expected.
Nor are we convinced of the contrary by the government’s comparison of
subsections 768.78(1) and 768.78(2)....
...the
two subsections. While subsection (2) applies in medical-malpractice cases only,
subsection (1) sets forth a similar framework for the payment of future economic
losses in all other cases where these losses exceed $250,000. Compare Fla. Stat. §
768.78(2) with id. at § 768.78(1). Subsection 768.78(1)(b) states,
In entering a judgment ordering the payment of [awarded] future
damages by periodic payments, the court shall make a specific finding
of the dollar amount of periodic payments which will compensate the...
...remaining liability of the defendant, reduced to present value, shall be
paid into the estate of the claimant in a lump sum. . . .
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Fla. Stat. § 768.78(1)(b) (emphasis added)....
...at 578.
But “[n]o canon of interpretation is absolute.” Antonin Scalia & Bryan A.
Garner, Reading Law: The Interpretation of Legal Texts 59 (2012). And in this
case, the canon cannot apply. For if it did, it would require us to reject the plain
and unambiguous meaning of section 768.78(2).
Plus, construing subsection (2) to allow for what subsection (1) expressly
precludes would also create significant administrative issues for which the statute
offers no solutions....
... Case: 17-13780 Date Filed: 08/17/2018 Page: 19 of 27
award based on actual lifespan, subsection (1) also forbids an enlargement of the
future-economic-losses award when the claimant outlives the expected lifespan.
Fla. Stat. § 768.78(1)(b) (“The period of time over which the periodic payments
shall be made ....
...t be subjected to
continuing obligations under the FTCA. That means that the district court would
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have no way to approximate section 768.78(2)’s results....
...to present value. We agree.
To explain why, we return once again to the FTCA’s requirement that any
award against the government approximate the same results that private parties
would have under the applicable state statute. Under section 768.78(2)(b), a
private party making periodic payments makes the payments over the entire span
of the period for which they compensate the claimant, not all at the beginning of
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that period. As a result, a private party is able to earn interest on any periodic
payments not yet paid. And a private party paying a single lump sum enjoys the
benefit of paying that amount reduced to present value. Fla. Stat. §
768.78(2)(A)(1).
But the government must deposit up front all the monies to be used to make
periodic payments, not reduced to present value....
...is when the district court
determined he would have started working had he not been disabled at birth.
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We look once again to section 768.78(2) in determining the appropriate
standard of review for this question, since the district court was charged with
approximating its effects. As relevant to this issue, section 768.78(2)(b) defines
“periodic payment” as “the spreading of future economic damage payments, in
whole or in part, over a period of time,” as further specified in the statute. Fla.
Stat. § 768.78(2)(b)....
...need not schedule all equal payments when it authorizes periodic payments. And
other than the requirement that the “total dollar amount of the periodic payments . .
. equal the dollar amount of all . . . future [economic] damages before any
reduction to present value,” id. at § 768.78(2)(b)(1), the statute leaves the trial
court free to exercise its discretion in fashioning the periodic-payment schedule.
We therefore review for abuse of discretion the district court’s decision that E.R.T.
shall be paid $1 million fo...