Judge reduces verdict by $355M in UHS subsidiary's negligence case

An Illinois judge has reduced the punitive damages an indirect subsidiary of King of Prussia, Pennsylvania-based Universal Health Services must pay in a negligence case, according to an Oct. 11 regulatory filing. 

On March 28, a jury ruled that negligence on the part of Champaign, Ill.-based Pavilion Behavioral Health Services was the proximate cause of the rape of a 13-year-old patient by another patient. The jury awarded $60 million in compensatory damages to the plaintiff — the victim's mother — and $475 million in punitive damages. 

Pavilion filed several post-trial motions, including contesting the "excessiveness of the damage awards," according to the regulatory filing. In an Oct. 10 order, the trial court judge reduced the punitive damages from $475 million to $120 million, but denied Pavilion's request for a reduction in compensatory damages. 

The plaintiff has 21 days from the date of the order to accept or refuse the reduced punitive damages, according to the filing. A refusal would lead to further legal proceedings. 

UHS said that Pavilion intends to appeal the remaining judgment after the plaintiff makes a decision on the reduced award. 

"Although we can make no assurances regarding the ultimate outcome of this matter, or what damages will ultimately be awarded, its final resolution could have a material adverse effect on the company," UHS said in the filing. 



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