A federal judge has blocked an eastern Iowa medical clinic’s efforts to declare bankruptcy in the wake of a record-setting $75 million malpractice judgment, Iowa Capital Dispatch reported. Bankruptcy Judge Anita L. Shodeen has dismissed the bankruptcy case filed late last year by Obstetric and Gynecologic Associates of Iowa City and Coralville, ruling that there is evidence that the filing was intended to shield the clinic’s insurer from a $12 million policy payout. In March 2022, a Johnson County jury awarded more than $97.4 million to the family of a boy who sustained serious brain damage during his birth at an Iowa City hospital. The award was later reduced to $75.6 million. Kathleen and Andrew Kromphardt sued Obstetric and Gynecologic Associates, along with Dr. Jill Goodman. The Kromphardts contended that their son’s brain damage was caused by medical workers’ failure to properly respond to signs the baby was deprived of oxygen in the hours leading up to his birth in August 2018. The boy is unable to walk by himself and is largely unable to speak. At trial, the family’s lawyer argued that the child will likely need 24-hour care for the rest of his life. Last October, with the Kromphardts attempting to collect the $75.6 million award in the case, the clinic filed for bankruptcy. The Kromphardts’ attorneys challenged the bankruptcy filing, arguing that it was filed in bad faith to avoid payment of the award.
