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Defense Digest

You Can’t Get Two Bites at the Apple – Or, Oh What a Tangled Web We Weave

Defense Digest, Vol. 30, No. 2, June 2024

June 1, 2024

Key Points: 

  • Judicial estoppel only requires that the party “successfully obtained a benefit by assertion of the position that she now seeks to dispute.” 
  • Expert testimony and closing arguments are sufficient for the purposes of application of judicial estoppel. 
  • Judicial estoppel applied even though different guardians had been appointed for minor-plaintiff in two different state actions.

In N.T. by and through Barrett v. Children’s Hospital of Philadelphia, 308 A.3d 1284 (Pa. Super. 2024), mom was pregnant with twins and was diagnosed with twin-to-twin transfusion syndrome (TTTS). This is a condition where abnormal communicating blood vessels in the placenta allow blood to circulate between fetuses, jeopardizing the survival of both. Mom lived in North Carolina and was referred to CHOP for possible selective laser photocoagulation of communicating vessels treatment (SLPVC). CHOP concluded that mom was not a candidate for the treatment based on ultrasounds interpreted by a Hospital of the University of Pennsylvania (HUP) radiologist.

Mom then went to Ohio to consult with Dr. Crombleholme, who performed the SLPVC at Cincinnati Children’s Hospital. Mom subsequently delivered her twins, and one had severe neurological deficits, while her sister was born healthy.

In 2011, the plaintiff initiated suit in the Philadelphia Court of Common Pleas against CHOP, the HUP radiologist, and Dr. Crombleholme. The claims were that Dr. Crombleholme improperly performed the procedure, that CHOP did not properly train Dr. Crombleholme while he was at CHOP, and that CHOP and the HUP radiologist had misdiagnosed the condition. In 2012, the Philadelphia Court dismissed the claims against Dr. Crombleholme due to lack of personal jurisdiction.

In 2013, the plaintiff started an action in Ohio against Dr. Crombleholme, seeking damages for the same injuries stated in the 2011 Philadelphia action. Therein, it was claimed that Dr. Crombleholme was liable for those injuries as a result of negligently performing the SLPVC. 

In 2016, a new action was filed on the minor-plaintiff’s behalf in Philadelphia against the CHOP and HUP defendants. At the same time, over the objections of the defendants, the 2011 action filed in Philadelphia was dismissed. In the 2016 action, the plaintiff sought damages for the same injures stated in the Ohio action. The complaint stated that the CHOP defendants misdiagnosed the condition of the fetuses and negligently failed to treat the TTTS. The complaint further stated that the HUP defendants misinterpreted the ultrasounds, and the CHOP defendants relied on that misinterpretation in their decision to not perform the SLPVC. Counsel for the minor-plaintiff was the same in the Ohio action and both Pennsylvania actions.

The Ohio action went to trial in 2017, and shortly before trial, the plaintiff amended her complaint to allege Dr. Crombleholme caused her injuries by “blind firing” the laser during the SLPVC, rather than firing at the vessels in the placenta to which it should have been directed. Further, the plaintiff claimed Dr. Crombleholme then made efforts to conceal the fact that the injuries were caused by his SLPVC. During the Ohio trial, the court ruled that there could be no reference to the pending Pennsylvania actions.

At the Ohio trial, the minor-plaintiff’s expert testified that her injuries were caused by firing the laser at healthy tissue during the SLPVC, damaging 30% of the placenta that was nourishing the minor-plaintiff. As a result, the minor-plaintiff’s injuries were hypoxic in nature and not caused by TTTS. The expert also testified that the minor-plaintiff’s brain was normal and uninjured prior to the SLPVC, and that, had the SLPVC been performed properly, she would have been born uninjured.

At the close of the Ohio trial, while the jury was deliberating, the case settled for $7 million. The settlement agreement stated that it did not apply to the claims against CHOP and HUP. Following settlement of the Ohio action, the Pennsylvania defendants were allowed to file amended answers, raising the affirmative defense of judicial estoppel. The defendants then filed motions to dismiss all claims because the plaintiff was judicially estopped from proceeding with her claims based on the resolution of the Ohio actions. These motions to dismiss were granted, and the plaintiff appealed.

On appeal, the Pennsylvania Superior Court wrote that judicial estoppel is an equitable doctrine to allow the courts to prevent litigants from “playing fast and loose with the judicial system by adopting whatever position suits the moment.” It bars a party from asserting inconsistent positions. The defendants pointed out that, in the Pennsylvania action, the plaintiff stated that the cause of the injury was the failure of the CHOP and HUP defendants to perform the SLPVC when she arrived, and the twelve-day delay between that arrival and the performance of the SLPVC in Ohio caused her brain damage. The defendants continued by pointing out this position was completely contrary to the position taken by the plaintiff in the Ohio action, namely that the minor-plaintiff suffered no brain damaged from the TTTS and that the sole cause of her injury was the negligent performance of the SLPVC in Ohio. The appellate court agreed that these positions were inconsistent and affirmed the granting of the motions to dismiss.

The plaintiff asserted that judicial estoppel did not apply. She argued: (1) judicial estoppel requires the “successful maintenance of an inconsistent position,” and a settlement, rather than determination by a court or jury, does not satisfy this element; (2) the expert testimony and argument of counsel are not a basis for judicial estoppel; and (3) the plaintiffs in the Ohio and Pennsylvania actions were not the same.

The Superior Court handily dismissed all three assertions by the plaintiff. With regard to the first argument, the court found that judicial estoppel only requires that the party “successfully obtained a benefit by assertion of the position that she now seeks to dispute and does not require that the issues have been actually litigated to a conclusion or determined by a court or other decision maker on the merits.” In N.T. v. CHOP, the appellate court found that this was clearly true because the minor-plaintiff obtained a $7 million settlement in Ohio by asserting Dr. Cromleholme was the sole cause of the injury. The claim that Dr. Crombleholme was the sole cause of the injury was irreconcilably inconsistent with the claims in the Pennsylvania action.

The second and third of the plaintiff’s arguments were easier to address. The appellate court found that expert testimony and closing arguments are sufficient for the purposes of judicial estoppel—to prevent the abuse of the judicial process by taking inconsistent positions before the courts. The final argument, that the plaintiffs were not the same simply because different guardians had been appointed for the minor-plaintiff in the two different state actions, held no water because the real party in interest was the minor-plaintiff, who was the same in both actions.

The moral of the story is, choose your battles well, as you may only live one day to fight.


 

Defense Digest, Vol. 30, No. 2, June 2024, is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. ATTORNEY ADVERTISING pursuant to New York RPC 7.1. © 2024 Marshall Dennehey. All Rights Reserved. This article may not be reprinted without the express written permission of our firm. For reprints, contact tamontemuro@mdwcg.com.

Firm Highlights

Thought Leadership

Appellate Division Reversed Trial Judge's Orders Granting a Plaintiff's Section 40 Summary Judgement Motion

In Haskins v. Casey, et al., the plaintiff Dane Haskins worked for defendant Ekornes, Inc. (Ekornes) as a material handler. In June 2021, he filed a workers’ compensation claim petition for benefits due to a left shoulder injury in December 2020. He then resolved his workers’ compensation claim in November 2022 under an Order Approving Settlement. In January 2023, he filed a lawsuit against Ekornes and later amended to add additional claims and name other defendants, including the Ekornes president, chief financial officer, and director of human resources. In May 2025, a second amended complaint alleged that after he filed the workers compensation claim, Ekornes placed him on leave under the Family and Medical Leave Act (FMLA), denied his request for a work accommodation, and ultimately terminated him from employment in December 2021. He pleaded several causes of action asserting violations of the New Jersey Law Against Discrimination (LAD) as well as fraudulent concealment and wrongful discharge. The plaintiff then moved for partial summary judgment, seeking an order enforcing Section 40 of the Workers’ Compensation Act (WCA) as well as summary judgment on his FMLA claims. The defendants opposed the motions and cross-moved for summary judgment on the FMLA claims. After arguments, the court entered an order in December 2025, denying the FMLA motion and cross motion and granting the plaintiff’s Section 40 motion. In the order, the court permitted the plaintiff to pursue compensatory damages at trial in connection with the bodily injury claim. The court also allowed the plaintiff to present evidence of any workers’ compensation benefits to support his claim. The court then denied the defendant's subsequent reconsideration motion in February 2026. The defendants that appealed the Section 40 aspect of the orders. In reviewing the appeal de novo, the Appellate Division rejected the plaintiff's argument that the work-related injury arose out of his discrimination claims under the LAD. The plaintiff argued that he should be able to pursue a personal injury claim as a part of his LAD claim, noting that the employer’s compensation carrier would be able to assert a lien against any recovery against his LAD claims. In distinguishing between the Richter vs. Oakland Board of Education, 246 N.J. 507 (2021) case, in which the Court found that any recovery would be subject to a Section 40 lien as the allegation was that the defendants failed to accommodate her pre-existing diabetic condition, which resulted in bodily injury. In this case, the Appellate Division indicated that there was no bodily injury caused by Ekornes’ failure to accommodate a pre-existing disability. Rather, the shoulder injury was a result of a workers compensation claim, for which he received appropriate benefits previously. The Appellate Division noted that if the plaintiff was successful in proving his LAD claims, he would be entitled to damages caused by the discriminatory discriminatory conduct such as lost wages and emotional distress damages and that there will be no Section 40 lien. In addition, the Appellate Division disagreed that the petitioner could present evidence about and seek damages for his shoulder injury at trial. Although the petitioner argued that a defendant who retaliated against an employee for filing a workers’ compensation claim should not benefit from the exclusivity provision of the WCA, the Appellate Division noted that the Legislature did not include this type of scenario in the statue nor did any of the case law recognize this type of claim as a remedy. As such, the Appellate Division reversed the December 2025 order granting the the plaintiff’s Section 40 summary judgment motion as well as the February 2026 reconsideration motion order. The Appellate Division noted that they did not intend to limit the plaintiff in his pursuit of his other claims on under the LAD, FMLA, and workers’ compensation retaliation causes of action.

Thought Leadership

WCJ Improperly Refused to Conduct C&R Hearing and Erroneously Required Settlement of All Pending Petitions

In this case, the claimant sustained injuries in the course and scope of her employment as a registered nurse. The employer acknowledged the injury by a Notice of Compensation Payable (NCP).  Subsequently, a Workers’ Compensation Judge (WCJ) expanded the description of injury. The employer then filed a Termination Petition, alleging the claimant was fully recovered from the injuries. Providers filed Utilization Review (UR) Petitions, challenging UR determinations finding their chiropractic treatment to be not reasonable and necessary. A settlement of the claim was eventually reached, and the employer filed a Petition to Seek Approval of a Compromise and Release (C&R) Agreement. The C&R outlined that the agreement fully resolved all future workers’ compensation claims except for the termination and UR Petitions. Briefs were filed and one day later, the WCJ issued an Interlocutory Order which stated if instructions were not followed regarding filing of a C&R, a settlement hearing date would not be given. The employer complied with the order, and filed the C&R. Subsequently, the WCJ notified the parties that the C&R must resolve all issues in the petitions, or would not be entertained. A settlement hearing was never held, and the WCJ then issued a decision, granting the Termination Petition and dismissing the UR Petitions. The WCJ also said that the Petition for Approval of a C&R was dismissed without prejudice, as the issues in the Termination and UR Petitions went to a decision. The claimant appealed to the Workers’ Compensation Appeal Board (Board). The Board granted the claimant’s appeal, finding that the WCJ violated the requirement of Section 449 that an expedited hearing be held when a Petition for Approval of a C&R is filed.  The Board further held that it was legally incorrect for the WCJ to insist that the C&R resolve all issues raised by the pending Petitions. The Board remanded the case to a new WCJ, and Employer appealed to the Commonwealth Court. The court affirmed the Board and held that the WCJ erred, as a matter of law, by refusing to hold an expedited hearing within 30 days, once the Petition for Approval of a C&R was filed.  The court noted that the language of Section 449(b) is mandatory, and a settlement hearing is not discretionary or dependent on a party’s separate request for a stay, or whether the record has been closed. The court further rejected Employer’s argument that the case should not be remanded to a new WCJ for a new decision on the termination and and UR Petitions, as the Board passed no judgment on whether the C&R Agreement resolved the termination and UR Petitions, and left it for the WCJ to decide in connection with the Petition for Approval of a C&R.

Thought Leadership

Commonwealth Court Reaffirms the Constitutionality of Act 111's IRE Provisions

In this case, the claimant sustained a work injury of January 6, 1994, which was acknowledged by Notice of Compensation Payable (NCP). After the claimant’s receipt of 104 weeks of temporary total disability benefits, the employer filed a Request for an Impairment Rating Examination (IRE). The IRE was performed in May 2023 and the IRE physician found that the claimant had a 5% whole person impairment, under the AMA Guides. The employer filed a Petition based on the IRE results, and the Petition was granted by the WCJ. During litigation, the claimant argued that the IRE provisions of Act 111 (Section 306(a.3) of the Act) were not applicable to her injury, since it predated June 24, 1996, the date Act 57 went into effect, and that the IRE provisions were unconstitutional. The Workers’ Compensation Judge (WCJ)) granted the Petition and the Board affirmed. On appeal to the Commonwealth Court, the claimant argued that Act 111 violated the nondelegation doctrine and that its retroactive application to the claimant’s injury was unconstitutional. The court rejected the arguments on the basis that they had already found the same arguments without merit in multiple, prior cases. The court also addressed an argument made by the claimant that Act 111 was procedurally defective under the Pennsylvania Constitution because it was only considered on two days in each House after having undergone amendments and reassignments. The court noted that the Pennsylvania Constitution requires every bill to be considered on three different days in each House. The claimant maintained that, according to the legislative history, the bill did not receive three separate days of consideration from each House when it was assigned a new bill number. The court pointed out, however, that the bill number, H.B. 1840 remained constant and was considered on three occasions by the House. Further, the court concluded that minor amendments to the bill were germane to its original subject, which was to modify the Act’s IRE process, in accordance with Protz II.