Repository: UIHistories Project: Board of Trustees Minutes - 1982 [PAGE 471]

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460

BOARD OF TRUSTEES

[February 18

CALL TO EXECUTIVE SESSION President Stone, referring to Section T w o of the Open Meetings Act, stated: "A motion is now in order to hold an executive session to consider information regarding the appointment, employment, or dismissal of employees or officers, and to discuss pending, probable, or imminent litigation against or on behalf of t h e University." T h e motion was made by M r . Howard and approved by the following vote: Aye, Mrs. Day, Dr. Donoghue, M r . Forsyth, M r . H a h n , Mr. Howard, M r . M a d d e n , M r . Neal, M r . Stone; no, n o n e ; absent, Mrs. Shepherd, Governor Thompson. ( T h e student advisory vote was: Aye, M r . Bandala, M r . Bettenhausen, M r . Persons; no, none.) Report on the Litigation and Settlement Discussions, Loss of Funds Due to the Actions of Robert N. Parker T h e university counsel, M r . Costello, reported on the status of insurance coverage and discussions with insurance companies, in particular the possibility of a settlement with the Federal Insurance Company of New Jersey of approximately $133,000. T h e board was not asked to take action on this matter, but in the course of discussion there was a general understanding that such a settlement as described would be acceptable. T h e discussions will continue; there is n o certainty that such a settlement will be reached. Settlement of Litigation (1) T h e University has been providing the defense of Dr. N u w u r u Reddy, Dr. Jerome Marchuk, and Dr. Walter Finkbeiner in litigation initiated by Matthew J. McDonnell (Circuit Court of Cook County Case #80-L-3720) seeking the recovery of damages for an alleged misdiagnosis of a torsion of the plaintiffs right testicle at the University of Illinois Hospital on June 18, 1979. Also named as a defendant is a Dr. Herbert S. Lakin who is not affiliated with the University but who earlier the same day had diagnosed plaintiffs condition as a torsion and had referred the patient to the University of Illinois Hospital with a note indicating his diagnosis. A different diagnosis was made by our personnel. Subsequently it was determined that a torsion existed, and surgery was performed on the plaintiff to remove the affected organ. It now appears that his ability to procreate may have been impaired. T h e plaintiff has demanded $75,000 in settlement which would be in the middle to upper estimated adverse verdict range. It is believed that the involvement of the University personnel can be settled for approximately $35,000 even though the case might remain in existence with respect to Dr. Lakin. While liability would be a factual issue for a jury to determine, it appears that the plaintiff will be able to adduce sufficient evidence to raise that issue. Taking into account the fact that the plaintiff is twenty-eight years of age and single, in awarding damages a jury could be quite sympathetic to his possible infertility, as well as the psychological trauma attendant thereto. Special counsel (Baker & McKenzie) has recommended that authority be extended to compromise the case for a total payment by the University of not to exceed $35,000. Settlement would eliminate the potential for a higher award and would resolve the uncertainties concerning the comparative negligence of the University personnel and Dr. Lakin. Attorneys' fees and costs can be expected to increase substantially as the case progresses and these can be avoided. Early settlement would also protect against inflationary trends in jury verdicts. T h e university