In a recent decision, Honorable Michael A. Latin (Ret.), acting as a judicial referee, has determined that Eisenhower Medical Center (EMC) must pay $4 million in punitive damages to Dr. Richard A. Loftus. The ruling follows a bifurcated trial on punitive damages, which examined the financial condition of EMC and its not-for-profit status.
The referee found that EMC and Eisenhower Medical Associates (EMA) acted with malice, fraud, and oppression through their officers and managing agents. The conduct leading to this liability was described as egregious and life-altering for Dr. Loftus. “The Referee finds by clear and convincing evidence that EMC and EMA…acted with malice, fraud and oppression,” the statement read.
Dr. Loftus’s claim was supported by evidence presented during the first phase of the trial, which highlighted misconduct by EMC’s administration. This included allegations against Dr. Abassi, who was accused of creating an abusive environment tolerated by EMC.
Despite arguments from the defendants suggesting that punitive damages could impact patient care negatively, the referee dismissed these concerns as minor compared to EMC’s substantial net income and assets. “First, the impact will be minor…Second…EMC’s conduct in this case is replete with examples of actions it took for years that run directly contrary to quality patient care,” said the referee.
The decision underscores that no punitive damages were assessed against EMA due to insufficient net assets; thus, the entire $4 million is levied against EMC alone.
Eisenhower Medical Center’s IRS 990 tax filings from 2022-2024 reveal an average annual net income of over $96 million, with net assets exceeding $1 billion in 2024.
Rager & Yoon – Employment Lawyers represented Dr. Loftus in this case.
