OB GYN Associates in Iowa City and Coralville, Iowa, filed for bankruptcy after their malpractice insurance failed to pay $12 million on $75-million-plus judgment, Iowa's News Now reported. In March, Andrew and Kathleen Kromphardt of Iowa City sued Mercy Hospital in Iowa City and OB GYN Associates after their baby suffered brain damage during birth back in 2018. A jury awarded the Kromphardt's $97.4 million in damages in March and after post-trial motions the court ordered the clinic to pay $75.6 million and for their insurance company MMIC to pay the $12 million on the policy. The Kromphardts have yet to be paid anything from OB GYN Associates or their insurance company. Last month, the Kromphardts filed an execution of judgment to order payment but Johnson and Polk County officials were unsuccessful in their attempts to secure those funds. Now OB GYN Associates has filed for chapter 11, which will allow the clinic to remain in business while it seeks to reorganize. Last week the Kromphardts filed a show-cause motion asking for the court to set an in-person hearing this month to determine why the judgment has not been satisfied and why MMIC should not be held in contempt of court until the applicable policy limits are paid.
