A new lawsuit claims an insurance company involved in a high profile medical malpractice case helped influence Iowa lawmakers to pass tort reform last session.
The civil lawsuit was filed this month by the Obstetric and Gynecological Associates of Iowa City and Coralville, the OB/GYN practice at the center of an exceptional medical malpractice case, and three of its doctors.
In 2022, a Johnson County jury awarded the Kromphardt family $97.4 million following a botched delivery that left their infant with a permanent brain injury.
The lawsuit filed by the OB/GYNs involved in the case claims their medical malpractice insurance company, Minnesota-based MMIC/Constellation, "put its financial and political interests ahead" of its clients when it refused to settle with the family and forced the case to go to trial, which is rare for medical malpractice cases.
The lawsuit also names Nicole Graziano, a claims adjuster for MMIC/Constellation, and Shuttleworth & Ingersoll, the law firm employed by the insurance company to represent the doctors.
Nick Rowley, the attorney representing the OB/GYNs, said MMIC/Constellation knew they would likely lose if the case went to trial, but did so anyways in order to influence Iowa lawmakers to cap non-economic damages on medical malpractice cases.
"This is a playbook that insurance companies have used over and over again," he said. "They refuse to pay on cases. They then have cases go to trial, there's a big jury verdict, and then the insurance company hires and pays lobbyists to go talk to politicians and say, 'Look at these out of control lawsuits that are driving our doctors out of state.'"
In a statement provided to IPR, MMIC/Constellation calls the lawsuit's allegations "simply untrue."
"Because of the implications for those involved, we want to be respectful of the legal process when commenting on active litigation. However, our plan is to file a response and we look forward to having this matter dismissed," the statement said.
"Our company remains committed to defending good medicine, and we stand with the caregivers, healers and helpers who have dedicated themselves to the essential work of enhancing health and life," it said.
Rowley said he's seeking a jury verdict against the insurance company and funds to compensate the OB/GYNs for "ruining their practice" and forcing their clinic to shut down, which could total more than $1 billion.
“Hopefully, we can pull the wool off of everybody's eyes and really show Iowa and show the courts what's been going on,” he said.
Gov. Kim Reynolds signed a new law last session capping non-economic damages in medical malpractice cases at $1 million for independent clinics and $2 million for hospitals.
Supporters of the legislation, including insurance companies and health care providers, said by capping non-economic medical malpractice damages, Iowa can drive down insurance costs and attract more doctors to the state.
Opponents, including trial lawyers, said it's unclear how much of an influence caps have on insurance prices and they violate people's rights by making it harder for them to sue.
Most states have passed some kind of medical malpractice caps on non-economic damages, and many have faced legal challenges. Some state supreme courts, like those in Kansas and Oklahoma, have ruled them unconstitutional, while others, like those in Missouri and Wisconsin, have upheld their laws.
