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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

Ohio Supreme Court Holds That a Binding Appraisal Award May Not Be Set Aside Absent Specific Evidence of Manifest Mistake or Fraud

On July 23, 2026, the Ohio Supreme Court issued a rare opinion on the binding effect of an appraisal award in a property insurance policy.  The Court in One Church held: A binding appraisal award will not be set aside unless an error is so palpably wrong that it undermines the intent of the agreement, such as corruption or gross mistake, not a mere error of judgment—To plead a claim of mistake with particularity as required by Civ.R. 9(B), facts alleged in a complaint must constitute the elements of mistake—Allegation that additional, hidden damage was discovered after appraisal award failed to state a claim of mistake that could justify setting aside binding appraisal.  The case arose out of a claim brought by One Church against its insurer, Brotherhood Mutual Insurance Company for roof damage from a storm. Pursuant to the terms of the insurance policy, the parties agreed to submit the matter to appraisal. The two appraisers inspected the building, and both appraisers agreed that the damages were $313,271.98. The insurer paid the agreed appraised amount.  Thereafter, the insured submitted a claim for an additional $206,663.09 in damages. The insured argued that these additional damages were not discovered until after the repairs began, and that they should be permitted to submit an additional claim, even though there had already been a binding appraisal of damages. The insurer refused to pay the additional damages, and the insured sued for breach of contract and bad faith.  In the trial court, the insurer moved to dismiss for failure to state a claim, arguing that the binding appraisal award barred any further claims. The insured took the position that additional hidden damages could not be discovered until after the repairs began, and therefore there was a mutual mistake. The trial court dismissed the case on the insurer’s motion, because there was no “evidence of fraud, misfeasance, or mistake”. The Court of Appeals agreed that appraisal awards are generally binding, but noted that an appraisal award can be set aside for fraud or manifest mistake. The Court of Appeals reversed and remanded the case to the trial court, finding that the insured had pled mistake with sufficient particularity. The insurer appealed to the Ohio Supreme Court. On appeal, the Ohio Supreme Court reversed the Court of Appeals, and reinstated the trial court decision dismissing the case for failure to state a claim upon which relief can be granted. The Supreme Court found that since the insured had already demanded appraisal, and the appraisal award was binding, “something more than error of judgement, such as corruption in the arbitrator, or gross mistake” must be pled with particularity, and proven for the insured to override the appraisal award. Since the complaint did not allege fraud or manifest mistake with sufficient particularity, something more than a mere error of judgment, the complaint was insufficient to state a claim.  The complaint in this case did not challenge the appraisal award. It pled that additional damages were discovered that were not apparent when the appraisal was done. It did not specify “who discovered the damages, how they were discovered, where they were found, why they were previously hidden, or why they rise to the level of a manifest mistake that the “appraiser would have corrected...had it been called to his attention”. Id at ¶22 citing Lakewood Mfg. Co. v. Home Ins. Co. of New York, 422 F.2d 796, 798 (6th Cir. 1970). Cases deciding the effect of appraisal awards are unusual. The Ohio Supreme Court’s decision in One Church relies primarily on 19th century case law for its conclusion. This emphasizes the fact that there is minimal case law deciding the effect of binding appraisal clauses in property insurance policies, and makes this case all the more significant. A lengthy dissent was written by Justice Fisher, who would have affirmed the Court of Appeals decision reversing and remanding the case for a decision on the merits. Of course, the decision works both ways, and an insurer dissatisfied with a binding appraisal award will likewise be without further recourse absent evidence of corruption, fraud, misfeasance, or manifest mistake, which must be pled with particularity. To constitute manifest mistake, “the mistake must be of such character that the arbitrator or appraiser would have corrected it had it been called to his attention.”  Lakewood Mfg. Co. v. Home Ins. Co. of New York, 422 F.2d 796, 798 (6th Cir. 1970).  The majority opinion does not specifically identify what would have been sufficient to plead mistake with particularity, or if the insured could have amended the complaint to overcome the deficiencies. The dissent argues that this was not really a case alleging mistake, but rather a question of contract interpretation. The insured did not challenge the appraisal, but argued that the hidden damage was not part of the appraisal, and the appraisal only covered the known damages.  However, this argument did not carry the day with the majority.  *Thomas F. Glassman, a shareholder in Marshall Dennehey’s Cincinnati office, filed a brief in the Ohio Supreme Court on behalf of the Ohio Association of Civil Trial Attorneys, in support of the insurer’s position.

Result

No-Cause Jury Verdict Secured in Wrongful Death Trial

We successfully obtained a no-cause jury verdict in a 13-day wrongful death trial. The decedent, a 59-year-old man, was admitted to the emergency room on February 15, 2019, with complaints of abdominal pain, decreased appetite, and constipation, despite the use of laxatives. The patient did not complain of any nausea, vomiting, or diarrhea. He had a significant medical history including diabetes, hypertension, prior coronary artery stenting, morbid obesity (with past gastric bypass surgery), longstanding ventral hernia, and back pain. A CT scan revealed multiple hernias and a potential closed-loop bowel obstruction, leading to a surgery consultation. Our client, an emergency general surgeon, interpreted that the patient did not have a closed loop or any significant obstruction and recommended non-surgical management. The patient was approved to have clear liquids, and had a vomiting incident shortly after, but our client was not notified. The patient was returned to NPO status, and after improving overnight, he was returned to “clears” and additional medical and renal consults were ordered. Our client did not receive any communications from the residents/nurses of any changes in the patient’s condition. On February 18, 2019, two rapid responses were called due to increased heart rate and vomiting. It is believed that the vomiting resulted in aspiration, causing sepsis, ultimately leading to the patient’s death. During the trial, the plaintiff’s sole medical expert highlighted imaging on the wrong hernia, which called into question all of his opinions in the case. We made key objections related to the expert testimony, limiting what the allegations were, and preventing new allegations from being made. After approximately two and a half hours of deliberating, the jury returned a no-cause verdict.