Utah $951M Hospital Negligence Verdict

Case Background

In October 2019, Plaintiff Anyssa D. Zancanella traveled to Salt Lake City. She was 39 weeks pregnant. Her water broke late on October 12. She went to Jordan Valley Medical Center – West Valley Campus. Defendant Steward entities operated and staffed the facility. Nurses admitted her to Labor and Delivery. An on-call obstetrician oversaw care. The hospital advertised capability for complicated labors and NICU support.

Cause

Staff began Pitocin at 3:32 a.m. on October 13. Nurses escalated the dose through the day. Fetal monitoring showed rising heart rate and repeated decelerations. Labor stalled despite prolonged induction. Nurses reported meconium and blood clots. Attempts to place a fetal scalp electrode failed. The on-call obstetrician visited twice, then slept on site. She delegated monitoring to a novice nurse. The charge nurse was not certified and offered little supervision. Worsening fetal distress continued overnight. A late deceleration to 90 bpm lasted 270 seconds. The obstetrician ordered an emergent Cesarean at 5:03 a.m. on October 14. Delivery occurred at 5:59 a.m., after a 64-minute interval.

Injury

Infant AZM presented with severe acidosis and depression. Apgars were 5, 6, and 8. Cord pH measured 6.9. Staff documented facial swelling, bruising, and scalp deformity. Providers airlifted AZM to Primary Children’s for therapeutic cooling. Imaging showed diffuse cerebral edema. Physicians diagnosed hypoxic-ischemic encephalopathy and neonatal seizures. Plaintiffs alleged permanent neurological and cognitive injuries. They described profound functional limits and ongoing medical needs.

Damages

Plaintiffs sought special and general damages. They requested past and future medical and non-medical expenses. They claimed lost wages and lost earning capacity for AZM and the parents. They sought compensation for pain, suffering, emotional distress, and lost enjoyment of life. Plaintiffs also sought punitive damages to punish reckless systemic failures and deter similar conduct.

Key Arguments and Proceedings

Legal Representation

• Plaintiff(s): Azaylee Jai Zancanella-McMicheal (minor, by parents/guardians) | Daniel McMicheal

• Counsel for Plaintiffs: David O. Creasy | Barbara W. Gallagher | Kevin Swenson

• Defendant(s): Jordan Valley Medical Center, LP (d/b/a Jordan Valley Medical Center – West Valley Campus) | Physicians Group of Utah, Inc. (d/b/a Steward Medical Group of Utah; Rocky Mountain Women’s Health Center – West Valley Campus) | Steward Health Care System, LLC | Steward Health Care Network, Inc.

• Counsel for Defendants: Shawn McGarry | Nan T. Bassett

Claims

Count I – Professional Negligence/Medical Malpractice (All Defendants).

Plaintiffs alleged substandard obstetric and nursing care. They claimed breaches in monitoring, response to fetal distress, and timing of Cesarean.

Count II – Negligent Hiring/Training/Retention/Supervision (Entity Defendants).

Plaintiffs alleged unsafe staffing, inadequate orientation, and lack of certified charge-nurse oversight.

Count III – Vicarious Liability/Respondeat Superior (Entity Defendants).

Plaintiffs sought to impute providers’ negligence to the hospital entities.

Count IV – Punitive Damages (All Defendants).

Plaintiffs alleged knowing and reckless indifference and an extreme departure from ordinary obstetrical care.

Defense

The Defendants broadly denied liability and argued that the Plaintiffs’ complaint failed to state a claim. They contended that Steward Health entities were not proper parties and did not employ the providers involved. They admitted only limited background facts but disputed the Plaintiffs’ narrative, claiming that cited records were taken out of context.

They further asserted multiple defenses: that injuries were caused by the Plaintiffs’ own conduct or by third parties beyond Defendants’ control; that fault must be apportioned under Utah law; and that Plaintiffs failed to mitigate damages. They invoked statutory caps and limitations under the Utah Health Care Malpractice Act, including on interest, non-economic damages, and periodic payment of future damages. Defendants also challenged punitive damages as unconstitutional, excessive, and unsupported, arguing their conduct was undertaken in good faith. Ultimately, they sought judgment in their favor and reliance on a jury trial.

Judgment

A Utah state court, presided over by Judge Patrick Corum, entered judgment awarding the Zancanella family $951 million against Steward Health Care entities and Jordan Valley Medical Center after finding systemic hospital negligence during the October 2019 labor and delivery of their daughter, Azaylee, caused permanent brain damage. The court emphasized that inadequate mentoring, training, supervision, and staffing created a foreseeable and dangerous environment, amounting to negligence, gross negligence, and reckless conduct. The award included substantial economic, non-economic, and punitive damages, marking one of the largest medical negligence verdicts in Utah history.

Court Documents

Court documents are available for purchase upon request at Jurimatic@exlitem.com

Source: Linkedin Post of Sean ClaggettSean Claggett