Goodrich v. Aetna
N/AOUTCOME: $120 million verdict
A jury in California yesterday awarded $116 million in punitive damages to a patient's widow who contends he died after a subsidiary of Aetna Inc., the nation's largest health insurer, delayed approvin ... g treatment for stomach cancer that its own doctors had recommended. Lawyers on both sides called it the largest such verdict against a health maintenance organization. Aetna said it was confident that the damages would be overturned on appeal, as would a finding by the jury in San Bernardino County Superior Court last week awarding $4.5 million in actual damages in the 1995 death of David Goodrich, 44, a career local prosecutor. The previous record, an $89 million award in a similar case five years ago, was later settled for a small fraction of the original amount. Mr. Goodrich's case, which comes against a growing national backlash against the restrictive policies of H.M.O.'s, is unusual because most Americans are barred by a 1974 Federal law from suing their health insurer or H.M.O. for any damages except unpaid bills even if treatment they are entitled to is refused. The 1974 law does not even allow collection of legal fees.