Schiernbeck

This case concerns the implementation of Code of Civil Procedure section 667.7, part of the Medical Injury Compensation Reform Act of 1975 (MICRA), which provides for periodic payments of future damages in medical malpractice cases. The question presented is whether the court correctly awarded interest on periodic payments from the date of the verdict. As we shall explain, we conclude that on the facts of this case the court erred in doing so. We therefore strike the award of interest and as modified affirm the judgment.

Procedural Background

Plaintiff Todd Schiembeck’s action for malpractice against the defendant, Bruce T. Haight, M.D., resulted in the jury awarding him $433,000. $178,000 of the award represented future economic damages; $100,000 represented future noneconomic damages. In posttrial proceedings, Haight successfully moved under section 667.7 to have the future damages payable in installments. The court ordered that a lump sum payment of $50,000, taken equally from both future economic and noneconomic damages, was to be paid to Schiembeck within 30 days, with the balance of future damages bearing interest at 10 percent annually to be paid in installments.…