A federal judge has blocked an eastern Iowa medical clinic’s efforts to declare bankruptcy in the wake of a record-setting $75 million malpractice judgment.
U.S. Bankruptcy Judge Anita L. Shodeen has dismissed the bankruptcy case filed late last year by Obstetric and Gynecologic Associates of Iowa City and Coralville, ruling there is evidence the filing was intended to shield the clinic’s insurer from a $12 million policy payout, reports the Iowa Capital Dispatch.
In March 2022, a Johnson County jury awarded more than $97.4 million to the family of a boy who sustained serious brain damage during his birth at an Iowa City hospital. The award, believed to be the largest medical malpractice judgment in Iowa history, was later reduced to $75.6 million.
The boy’s parents, Kathleen and Andrew Kromphardt, had sued Obstetric and Gynecologic Associates of Iowa City and Coralville as defendants, along with Dr. Jill Goodman, one of the directors of the clinic. Read more.
