No. 92SA277Supreme Court of Colorado.
Decided April 26, 1993. Rehearing Denied June 7, 1993.
Appeal from the District Court, City and County of Denver Honorable Warren O. Martin, Judge
Page 902
Haddon, Morgan Foreman, P.C., Norman R. Mueller, Ty Gee; Branney, Hillyard, Kudla and Jurdem, Joseph J. Branney, Neil Hillyard, John S. Portman, for Plaintiffs-Appellants and Cross-Appellees.
Johnson, Ruddy, Norman McConaty, P.C., Collie E. Norman, Thomas H. Anderson, for Defendant-Appellee and Cross-Appellant.
Wilcox Ogden, P.C., Ralph Ogden, for Amicus Curiae Colorado Trial Lawyers Association.
Davis, Graham Stubbs, Andrew M. Low, Robert A. Gatter, Jr., for Amici
Page 903
Curiae Physician Insurers Association of American and American Tort Reform Association.
Michael J. Norton, United States Attorney, James W. Winchester, Senior Litigation Counsel, Michael E. Hegarty, for Amicus Curiae United States of America.
EN BANC
CHIEF JUSTICE ROVIRA delivered the Opinion of the Court.
[1] Franz and Ingeborg Scholz appeal the district court’s ruling reducing the amount of damages awarded by a jury for noneconomic and derivative losses pursuant to the Health Care Availability Act (“HCAA”), sections 13-64-101 to -503, 6A C.R.S. (1992 Supp.), refusing to award prejudgment interest for future damages, and refusing to award all actual costs alleged to have been incurred by plaintiffs subsequent to defendant’s refusal of a settlement offer.[1] We affirm in part and reverse in part.I
[2] In 1989, Franz Scholz developed a bladder problem. Scholz was examined by Dr. Myron Yakely, a specialist in the field of urology, who opined that Scholz’s problem was caused by an obstruction due to a reaction to medication Scholz was taking. Dr. Yakely’s examination also revealed a hardened spot in the prostate. An ultrasound, which revealed nothing abnormal, and a biopsy were taken. The biopsy was analyzed by Dr. Howard Pirch, a specialist in the field of pathology and an employee of Metropolitan Pathologists, P.C. (Metropolitan). When Metropolitan gave the results of the biopsy to Dr. Yakely, he advised Scholz that they were positive for cancer.
Page 904
the provisions limiting the damage award were unconstitutional.
[7] The district court denied plaintiffs’ motion for entry of judgment on the jury verdict — applying the HCAA and rejecting plaintiffs’ constitutional challenges. The court reduced the total noneconomic and derivative damages for both plaintiffs from $914,250 to $250,000. After the addition of prejudgment interest, judgment in favor of plaintiffs was entered in the total amount of $1,065,929.09. Defendant paid $1,000,000 towards this judgment claiming that their total liability, including prejudgment interest, was limited to $1,000,000 under the HCAA. II
[8] The first issue for review concerns whether the HCAA is applicable to this case. Plaintiffs argue that because the injuries they suffered were caused by Cunningham, an unlicensed, nonprofessional lab technician, the HCAA is inapplicable as Cunningham is not a “health care professional” as that term is defined in the HCAA. We disagree.
Page 905
frustrate the General Assembly’s intent, as expressed in the legislative declaration, in passing the HCAA’s damage limitation provisions. “Perhaps the best guide to [ascertaining the General Assembly’s] intent is the declaration of policy which frequently forms the initial part of a enactment.” St. Lukes Hosp. v. Industrial Comm’n, 142 Colo. 28, 32, 349 P.2d 995, 997 (1960). The legislative declaration of the HCAA states:
[15] “The general assembly determines and declares that it is in the best interests of the citizens of this state to assure the continued availability of adequate health care services to the people of this state by containing the significantly increasing costs of malpractice insurance for medical care institutions and licensed medical care professionals . . . .” [16] § 13-64-102, 6A C.R.S. (1992 Supp.). In seeking to curb the increasing costs of malpractice insurance in this state, there is nothing in the HCAA which suggests the legislature sought to do so only by limiting recoveries for actions brought against licensed professionals or professional corporations and entities whose liability results solely from the conduct of those professionals. The reason that no such suggestion exists is clear: the negligent conduct of unlicensed employees, such as Cunningham, who contribute to providing health care services affects the insurance premiums that health care providers pay, just as the conduct of professionals within those entities does.[5] In short, the legislature did not distinguish between the status, i.e., licensed/unlicensed, professional/nonprofessional, of health care providers when it sought to check the rising costs of malpractice insurance by including professional corporations and entities within the coverage of the HCAA. [17] Thus, we find that the definition of a “health care professional” provided in the HCAA was intended to require the application of the statute under the circumstances presented here. III
[18] Plaintiffs next argue that if the HCAA applies, the statute must be struck down as unconstitutional because it infringes on the right to a jury trial in civil cases, and violates the guarantees of equal protection and due process of the law. We note at the outset that “statutes facing a constitutional challenge are presumed to be constitutional, and the party challenging the statute bears the burden of proving it to be unconstitutional beyond a reasonable doubt.” Firelock Inc. v. District Court, 776 P.2d 1090, 1097 (Colo. 1989). We hold that the plaintiffs have failed to meet this burden.[6]
A
[19] Plaintiffs’ first argument is that in limiting the amount of damages that may be recovered by a plaintiff suing a health care professional, the HCAA unconstitutionally infringes on the right to a jury trial in civil cases. Plaintiffs concede, however, that if there is no right to a trial by jury in civil cases under the Colorado Constitution, then this constitutional challenge must fail.
Page 906
courts, or in criminal cases in courts not of record, may consist of less than twelve persons, as may be prescribed by law.” For over a century this court has repeatedly held that this provision does not guarantee a trial by jury in civil cases as a matter of right. See, e.g., State Farm Mut. Auto. Ins. v. Broadnax, 827 P.2d 531 (Colo. 1992); Huston v. Wadsworth, 5 Colo. 213 (1880).
[21] Plaintiffs contend, however, that all of our prior cases that have held the state constitution does not provide for a jury trial in civil cases as a matter of right should be overruled by giving City of Denver v. Hyatt, 28 Colo. 129, 63 P. 403 (1900), preclusive effect over those decisions. We decline the invitation to overrule those cases, and reaffirm the fact that the Colorado Constitution does not guarantee a jury trial in civil cases as a matter of right. Accordingly, we overrule Hyatt. Because such a right does not exist under the Colorado Constitution, it logically follows that the HCAA’s provisions limiting a plaintiff’s ability to recover damages does not violate that “right.”B
[22] Plaintiffs next argue that the damage limitation provisions of the HCAA violate their right to equal protection of the laws.[7] The HCAA does not infringe on a fundamental right, nor does it create a classification based on race, religion, national origin, or gender. Thus, the HCAA must be reviewed under the rational basis test. Sigman v. Seafood Ltd. Partnership I, 817 P.2d 527 (Colo. 1991). Under that test, a state will not be found to violate equal protection guarantees so long as it is reasonable and bears a rational relationship to a legitimate state objective. State v. DeFoor, 824 P.2d 783, 787 (Colo.) cert. denied sub nom. Pacheco v. DeFoor, 113 S. Ct. 483 DeFoor v. Colorado, 113 S. Ct. 483 (1992). A statute will be presumed constitutional under rational basis review and the party challenging the constitutionality of a law has the burden of proving its unconstitutionality beyond a reasonable doubt. City of Cleburne v. Cleburne Living Center, Inc., 473 U.S. 432, 440 (1985); Harris v. The Ark, 810 P.2d 226 (Colo. 1991).
(1992) (quoting McGowan v. Maryland, 366 U.S. 420, 425-26 (1961)) DeFoor, 824 P.2d at 790 (same). Consequently, the fact that the HCAA treats different people differently will not, as a general rule, render that statute unconstitutional on equal protection grounds. Bushnell v. Sapp, 194 Colo. 273, 280, 571 P.2d 1100, 1105 (1977) (“Classes can certainly be treated differently, so long as this unequal treatment is
Page 907
based on reasonable differences.”). Thus, to the extent that plaintiffs’ equal protection challenge to the HCAA is premised on the unequal treatment of various tort victims, we reject their argument.[8]
[25] Addressing the more familiar bases upon which statutes are challenged on equal protection grounds, we find that the HCAA clearly satisfies the rational basis test. The HCAA was enacted in 1988 in response to legislative findings which indicated severe problems concerning health care availability due to the rising costs of malpractice insurance premiums in Colorado. Given the current debate, both at the state and national levels, concerning the availability of health care, it can hardly be argued that the effort to increase the availability of health care is not a legitimate governmental interest. Similarly, it is reasonable to assume that the sometimes unpredictable and large damages that are awarded for noneconomic injuries contribute to the rising cost of malpractice insurance and thus, operate to limit the availability of health care services. Consequently, the concerns that prompted the General Assembly to pass the HCAA, as expressed in the declaration of intent as well as the legislative history of the act, reasonably support the passage of the act. The wisdom and effectiveness with which the HCAA might remedy the concerns sought to be addressed are, of course, not questions which this court will entertain, for “we do not sit as a `super legislature’ to weigh the propriety of . . . legislation.” Colorado Soc. of Comm. Inst. Psych. v. Lamm, 741 P.2d 707, 712 (Colo. 1987). Consequently, the damage limitation provisions of the HCAA do not violate the guarantee of equal protection of the laws.C
[26] Plaintiffs’ last constitutional challenge alleges that the HCAA violates the right to due process of the laws. The argument appears to be that, because the HCAA imposes limits on potential damage awards, it inflicts a deprivation of property without a hearing.
IV
[28] Plaintiffs next argue that the trial court erred in refusing to increase the amount of awardable noneconomic damages from $250,000 to $500,000, pursuant to section 13-21-102.5(3)(a), 6A C.R.S. (1987). That section differs from the damage limitation provisions of the HCAA in two significant ways. First, section 13-21-102.5(3)(a) applies “in any civil action in which damages for noneconomic loss or injury may be awarded . . . .” As such, the scope of section 13-21-102.5 is much broader than the damage limitations of the
Page 908
HCAA, which apply only in certain types of civil actions against particular types of defendants. Second, section 13-21-102.5(3)(a) provides that, upon a showing by clear and convincing evidence, a damage award for noneconomic injury or loss may be increased to an amount not to exceed $500,000. The HCAA contains no analogous provision.
[29] Because section 13-21-102.5(3)(a) is a statute of general application and was passed prior to passage of the HCAA, it is not applicable to this case. Climax Molybdenum Co. v. Walter, 812 P.2d 1168, 1174 (Colo. 1991) (“As a general rule, a special or specific statutory provision prevails over a general provision unless the general provision is later in time and the legislature has manifested a clear intent that the general provision should prevail”); M.S. v. People, 812 P.2d 632, 637 (Colo. 1991) (if two statutes conflict, later statutes prevail over earlier ones). Thus, we hold the trial court did not err in refusing to increase the amount of awardable damages for noneconomic loss to $500,000, as no provision for doing so is contained in the HCAA.V
[30] Plaintiffs next argue that the trial court erred in awarding prejudgment interest only for “past damages,” and in refusing to award prejudgment interest for “future damages.” We agree.
Page 909
(same); Mumford v. Hughes, No. 91CA1406 (Colo.App. Sept. 10, 1992) cert. pending (statute does not distinguish between prejudgment interest for past and future damages, nor did the General Assembly intend that courts draw such a distinction); Stevens v. Humana of Delaware, Inc., No. 90CA0945 (Colo.App. April 23, 1992) (same).
[36] We are mindful of the issues surrounding the award of prejudgment interest to future damages and the varying conclusions reached by those who have considered the issue.[9] We find, however, that based on the language of the prejudgment interest statute, it is not for this court to reach its own conclusion regarding those issues but rather, to enforce the statute as written. If our conclusion here does not comport with the General Assembly’s intention in passing the prejudgment interest statute it is the legislature, not the court, that must rewrite it. [37] Therefore, we hold that the trial court erred in distinguishing between past and future damages for purposes of the prejudgment interest statute and in only applying prejudgment interest for the amount of past damages awarded.VI
[38] Plaintiffs next argue that the trial court erred in its award of actual costs pursuant to section 13-17-202(1)(a)(I), 6A C.R.S. (1992 Supp.). After trial, plaintiffs filed a motion for payment of actual costs and in support of this motion, submitted documentation which alleged that the total actual costs accrued after the offer of settlement was $11,869.97. The trial court, without explanation, then awarded plaintiffs $9,000 for their actual costs.
Page 910
statute to the present case. Rather, their dispute centers on whether a court has any discretion in awarding actual costs under the statute.
[40] We presume that the General Assembly, in enacting a statute, intends that the law will have just and reasonable results. § 2-4-201(1)(c), 1B C.R.S. (1980); Climax Molybdenum Co. v. Walter, 812 P.2d 1168 (Colo. 1991). “The provisions of section 13-17-202(3) are mandatory and nondiscretionary in many respects.” Centric-Jones Co. v. Hufnagel, No. 92SA407 (Colo. Mar. 29, 1993) slip op. at 10. The trial court has no discretion to refuse to award actual costs due to a party under the statute. However, to hold that a trial court has absolutely no discretion over the amount of actual costs awarded could lead to results that are manifestly unreasonable and unjust. In the absence of discretion, a party could compel a trial court to award actual costs no matter how unreasonable or unnecessary such expenses may have been. This would lead to the untenable result that a trial court award costs for expenses which never should have been incurred. See Jorgenson v. Heinz, No. 91CA1162 (Colo.App. August 13, 1992) (only “reasonable” actual costs should be awarded under section 13-17-202 in order to avoid absurd result). Therefore, we hold that a trial court need only award actual costs that are reasonably incurred by a party under section 13-17-202. Consequently, the fact that the trial court awarded actual costs in an amount less than what plaintiffs claimed as their actual costs is not per se error. [41] The trial court, however, made no findings that the actual costs alleged by plaintiffs were unreasonable. Rather, the court simply awarded $9,000 in actual costs without explanation. Though this award may in fact reflect only those actual costs reasonably incurred by plaintiffs, there is no way to determine this from the record before us. Consequently, the trial court should reconsider its award of actual costs pursuant to section 13-17-202(1)(a)(I) in light of this opinion, and should include in the record the basis for its final award. VII
[42] In its cross-appeal, defendant argues that the trial court erred in its determination of the total amount of damages awardable to plaintiffs under the HCAA because the award was greater than $1 million. The trial court determined that the total award to plaintiffs, before costs and prejudgment interest were added, would be $911,829. The trial court then determined that $720,829 of this total represented “past damages,” and therefore was subject to prejudgment interest totaling $154,100.09. The trial court added the amount of prejudgment interest to the total award of $911,829, and concluded that, prior to the addition of costs, plaintiffs were entitled to recover $1,065,929.09 from defendant.
Page 911
about whether prejudgment interest is to be included within the HCAA’s $1 million cap. We therefore reject defendant’s argument. The question remains, however, whether prejudgment interest is included within the damage limitation provisions of the HCAA. We hold that it is not.
[45] It is significant to note first, that the prejudgment interest statute was enacted prior to the passage of the HCAA. Consequently, we assume that the General Assembly was aware of the provisions of the prejudgment interest statute when it passed the HCAA. People v. Green, 734 P.2d 616(Colo. 1987). Second, we will not assume that the General Assembly intended to abolish or otherwise abrogate a preexisting law without a clear expression of its intent to do so. Uzzell v. Lunney, 46 Colo. 403, 418, 104 P. 945, 950 (1909) (“It is . . . presumed that the legislature does not intend to make any change in the existing law beyond what it expressly declares.”). Finally, when two statutes apparently conflict, a court will strive to read them harmoniously so as to give effect to both. Riley v. People, 828 P.2d 254 (Colo. 1992). [46] Guided by these principles of interpretation, we find that prejudgment interest is not included in the $1 million damage cap of the HCAA. In so holding, both the HCAA and the prejudgment interest statute can be given effect. The prejudgment interest statute applies to “all civil cases” and thus, absent the provisions of the HCAA, would clearly apply in the present case. Thus, allowing an award for prejudgment interest in this case gives effect to the prejudgment interest statute. Similarly, the damage cap provisions of the HCAA have been given effect in this case, and have operated to reduce the total amount of awardable damages to plaintiffs. Thus, by holding that prejudgment interest is not included in the $1 million cap, both statutes have been given effect. To read the HCAA as limiting the award of prejudgment interest in this case, in contrast, would do violence to the plain language of the prejudgment interest statute. This we decline to do. [47] Moreover, because the prejudgment interest statute applies to all civil cases irrespective of the amount of damages awarded, interpreting the HCAA to limit such interest in the present case to the extent that prejudgment interest would result in awardable damages in excess of $1 million would require a change in the law which existed at the time of the HCAA’s passage. Nothing in the HCAA evinces the legislature’s express intent to change the law as it existed prior to passage of the HCAA in this regard, and we will not infer from the language of the HCAA the legislature’s intent to do so. See Uzzell v. Lunney, 46 Colo. at 418, 104 P. 945 at 950. [48] Therefore, we conclude that the $1 million total damage limitation of the HCAA does not include the amount awarded pursuant to the prejudgment interest statute.
VIII
[49] In conclusion, we hold that the HCAA applies to the facts of this case and that its damage limitation provisions are constitutional. We also hold that the prejudgment interest statute applies both to future and past damages, but that prejudgment interest is not to be included in applying the $1 million damage cap of the HCAA. In addition, we hold that the trial court did not err in refusing to increase the total amount of awardable noneconomic and derivative damages from $250,000 to $500,000, as no provision for doing so is contained in the HCAA. Finally, we hold that the trial court should reconsider its award of actual costs pursuant to section 13-17-202(1)(a)(I) in light of this opinion, and should include in the record the basis for its award.
“Past medical expenses $15,000 Past lost earnings $255,829 Past physical impairment $200,000 Past noneconomic loss $500,000 Future medical expenses $21,000 Future physical impairment $170,000 Future noneconomic loss $255,000”
“Past economic loss $750 Past noneconomic loss $100,000 Future economic loss $8,500 Future noneconomic loss $50,000”
Page 912
of the court in all other respects. The majority in part V holds that the prejudgment interest statute, § 13-21-101(1), 6A C.R.S. (1987), permits the recovery of prejudgment interest for future damages found by a trier of fact in a suit governed by the Health Care Availability Act (the HCAA), §§ 13-64-101 to 13-64-503, 6A C.R.S. (1992 Supp.). The HCAA is a later enacted and more specific statute than the prejudgment interest statute, and thus the express purpose and provisions of the HCAA should guide the application of the prejudgment interest statute in suits governed by the HCAA. See M.S. v. People, 812 P.2d 632, 637 (Colo. 1991).
[54] The HCAA attempts to curb the “significantly increasing costs of malpractice insurance,” § 13-64-102, by setting limits in medical malpractice cases on the award of damages, including compensatory damages, § 13-64-302, and by “[e]ffectuat[ing] more precise awards of damages for actual losses,” § 13-64-201(1)(b). The HCAA defines “future damages” as “damages of any kind arising from personal injuries which the trier of fact finds will accrue after the damages findings are made,” §13-64-202(2), and the HCAA requires the trier of fact to determine the present value of future damages and to make separate findings for each claimant specifying the amount of such damages, §§ 13-64-204(1)(b), 13-64-205(1)(d). These findings provide the basis for the entry of judgment for future damages. See § 13-64-205(1)(d), (e), (f). [55] The overcompensation of a claimant by an award of prejudgment interest for future damages[1] in a case governed by the HCAA is plainly inconsistent with the purpose of the HCAA. In addition, because the HCAA requires in every case governed by it a specific finding of the present value of future damages accruing after the damages findings are made, the HCAA places the trial court in a perfect position to effectuate the purpose of the HCAA by making a more precise award of damages for actual losses. I would therefore affirm the trial court’s ruling not to award prejudgment interest for future damages in this case, and I would hold generally that the HCAA does not permit in cases governed by it the recovery of prejudgment interest for future damages.