Raymond A. Shaw and Karen L. Shaw, Husband and Wife, Individually, and as Guardians Ad Litem of Richard Scott Shaw, a Minor v. United States

The United States appeals the damages component of a judgment under the Federal Torts Claims Act, 28 U.S.C. §§ 1346 (b), 2674 (“FTCA”). We reverse and remand. FACTS AND PROCEDURAL BACKGROUND:

Karen Shaw gave birth to Richard Scott Shaw (“Scotty”) at the Madigan Army Medical Center in Tacoma, Washington on July 4, 1979. The baby suffered severe brain damage during delivery. On March 1, 1982, Mr. and Mrs. Shaw (“the Shaws”) filed suit against the United States under the FTCA in their own behalf, and as guardians ad litem for Scotty. The action was tried to the district court without a jury as required by 28 U.S.C. § 2402 . The court found that Scotty’s injuries, which include spastic quadraparesis, blindness, a seizure disorder, and profound mental and physical retardation, were caused by the negligence of the hospital medical staff. On appeal, the United States has conceded liability.

The district court awarded damages of $11,732,345.43. First, the court found that Scotty was entitled to pecuniary damages — for future medical expenses, full-time attendant care, and lost earnings — of $4,780,147. It calculated the discount rate as follows:

The court then applied this rate by…