Repository: UIHistories Project: Board of Trustees Minutes - 1982 [PAGE 203]

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192

BOARD OF T R U S T E E S

[March 19

President Stone announced that an executive session was requested and ordered for consideration of pending litigation. EXECUTIVE SESSION T h e board considered the following item of business. Settlement of Alice Martin Litigation (Medical Center) (1) T h e University and five physicians on its staff have been named as defendants in a suit initiated on behalf of Alice Martin, a minor, seeking recovery for damages for alleged malpractice in connection with her birth at the University of Illinois Hospital in February 1974 (Alice Martin, et al, v. Reed, et al., Circuit Court of Cook County, Case No. 79 L 342). T h e case was reviewed and discussed by the board at its November 1980 and January 1981 meetings. The plaintiff has suffered severe brain damage and, while there is some evidence that the damage may have occurred prior to the incident at the University of Illinois Hospital, there is a distinct possibility that a jury may determine otherwise. T h e estimated verdict range, if liability is found, is between $2,000,000 and $3,000,000. T h e University's self-insurance plan did not become effective until August 1, 1976, and does not apply to this transaction. At the time of the incident the University carried commercial insurance with a limit of $500,000 per occurrence. The university counsel has addressed a March 17, 1981, confidential memorandum to the members of the Board of Trustees and to the president of the University, a copy of which has been filed with the secretary for record, outlining developments in the case and the status of settlement negotiations. He has recommended that under the special circumstances of the matter, the uncertainties of the litigation, the complex legal issues involved, the expense incident to further proceedings, and the advantages in maintaining employee morale and retention, authority be given for the University to contribute up to $250,000 in settlement of the litigation. T h e University's insurance carrier would contribute not less than $500,000. T h e executive vice president joins in such recommendation. Funds are available in the Hospital Income Account. I concur. T h e university counsel commented on prospects for settlement of the " M a r t i n v. R e e d " litigation as set forth in this memorandum and in a previous m e m o r a n d u m mailed to the trustees. (A copy is filed with the secretary for record.) O n motion of Mr. Howard, the authority for settlement requested in this m e m o r a n d u m was approved by the following vote: Aye, Mrs. Day, Dr. Donoghue, M r . Forsyth, M r . Howard, M r . Madden, Mr. Neal, Mrs. Shepherd, M r . Stone; no, none; absent, M r . H a h n , Governor Thompson. ( T h e student advisory vote was: Aye, Mr. Maltese, M r . Peterson, M r . Silverman; no, none.) EXECUTIVE SESSION ADJOURNED FOR COMMITTEE MEETING M r . Stone announced that the executive session would be adjourned for a meeting of the Buildings a n d Grounds Committee. T h e Board of Trustees' regular meeting reconvened a t 10 a.rm