JOHN V. ACOSTA, Magistrate Judge.
Plaintiff Kathleen Priest ("Priest") filed this personal injury action against the United States of America ("United States") pursuant to the Federal Tort Claims Act, 28 U.S.C. §§ 2671-2680 (the "Act"), after being allegedly injured in a collision with a United States Postal Service ("Postal Service") vehicle. Priest claimed $234,605.65 in damages in her initial administrative claim filed with the Postal Service ("Claim") and the original complaint filed in this court against the United States ("Complaint"). Before the court are Priest's motion to amend the Complaint ("Motion"), and supplement the Motion ("Supplement"). The Motion and Supplement seek to increase the damages alleged in the Claim and Complaint, resulting in a new total damage amount of $382,521.55.
The court concludes the evidence on which Priest relies constitutes newly discovered evidence or intervening facts not reasonably foreseeable at the time Priest filed the Claim. Accordingly, the Motion and Supplement should be granted. Priest should be allowed to amend the Complaint to include economic damages resulting from the unforeseeable medical and therapy expenses and non-economic damages related thereto.
Priest was involved in an automobile accident with a Postal Service employee and vehicle on November 5, 2011 (the "Accident"). (Compl. ¶ 3.) Priest alleges the Postal Service employee, who ran a red light and struck Priest's car, was negligent. (Compl. ¶¶ 3, 4.) Priest claims she suffered whiplash and permanent injuries to her right elbow as a result of the Accident. (Compl. ¶ 6.)
Two days after the Accident, Priest sought medical treatment complaining of head and neck pain. (Martin Decl. dated January 16, 2015 ("Jan. 16
Despite her injuries, Priest was able to maintain her employment as a high-level ski instructor. Priest testified at her deposition she worked as an instructor twenty-four days during the 2011-12 ski season. (Priest Depo. 24:14-22.)
On May 1, 2012, Priest sought treatment from John A. Durkan, MD., primarily for complaints of "increased tingling in the 4
Upon presentation at Columbia Gorge Neurology for testing later that month, Priest complained of right arm pain and numbness. (Jan. 16
In June 2012, Priest reported continued symptoms in her right elbow, including burning sensations and pins-and-needles feelings, with the pins-and-needles referring to her fourth and fifth digits on her right hand, and pain levels between one and eight, with an average between three and four. (Jan. 16
In a July 31, 2012 office note, Dr. Durkan characterized Priest's injury as "a contusion of the ulnar nerve on the right arm" that is continuing to improve with "good days and occasional days where the symptoms of tingling recur" with activities such as bike-riding and excessive or repetitive muscle strengthening exercises. (Hill Decl. dated January 2, 2015 ("Jan. 2
Priest advised her physical therapist she and Dr. Durkan had mutually decided she would discontinue physical therapy. (Jan. 16
In September 2013, Priest filed the Claim with the Postal Service seeking $246,389.87 in total damages: $11,784.22 for property damage consisting of car repair and rental costs; $9,605.65 for economic damages consisting of medical and physical therapy expenses; and $225,000.00 for non-economic damages consisting of pain, suffering, and impairment of her normal and usual activities. (Jan. 16
Priest's right elbow pain continued through the summer of 2014, when she returned to Dr. Durkan seeking additional treatment. (Pl.'s Mot. to Amend ("Mot.") at 2; (Hill Decl. dated Aporil 30, 2015 ("April 30
In September 2014, Priest complained to Dr. Mirarchi of constant pain at a level from two to eight which worsened with driving and improved with rest with numbness in the small and ring fingers but no weakness. (Hill Decl. dated January 30, 2015 ("Jan. 30
On October 3, 2014, Dr. Mirarchi performed ulnar submuscular transposition surgery on Priest's right elbow (the "Surgery"). (Mot. at 2.) Priest started post-surgery rehabilitation treatment on October 28, 2014 (the "Therapy"), which ended in January 2015 and is expected to be the last treatment for Priest's right elbow injury. (Mot. at 2.)
In the Motion filed January 2, 2015, Priest moves to amend the Complaint to increase the economic and non-economic damage amounts based on the Surgery and Therapy. Specifically, Priest seeks to increase her economic damages to $29,997.91, and her non-economic damages to $350,000. Priest filed the Supplement on April 30, 2015, asking to amend the Motion to include medical expenses incurred or received after the Motion was filed and increase her economic damages to $32,521.55. (Pl.'s Supplement to Motion to Amend ("Supp.") at 2.)
As a sovereign, the United States is immune from suit except to the extent it specifically consents to be sued. Canton v. United States, 495 F.2d 636, 637 (9th Cir. 1974). The Act waives the United States' sovereign immunity over certain claims against the United States for injuries caused by the negligent or wrongful act or omission of any government employees acting within the scope of employment. Dolan v. U. S. Postal Serv., 564 U.S. 481, 482 (2006). Any waiver of sovereign immunity must be strictly and narrowly construed in favor of the United States. Lane v. Pena, 518 U.S. 187, 192 (1996).
Before a party may bring suit in federal court against the government under the Act, they must first present their claim to the appropriate federal agency within two years after the claim accrues. 28 U.S.C. §§ 2401(b), 2675(a) (2015). See Canton, 495 F.2d at 638. A claim is deemed presented for the purposes of the Act when a party files: "(1) a written statement sufficiently describing the injury to enable the agency to begin its own investigation, and (2) a sum certain damages claim." Warren v. U. S. Dept. of Interior Bureau of Land Mgmt, 724 F.2d 776, 780 (9th Cir. 1984). An action may be commenced when the agency denies the claim or fails to finally dispose of a claim within six months. 28 U.S.C. § 2675(a). Id. at 778.
Generally, a plaintiff pursuing a legal action in court against the United States is limited to the amount of damages sought in the administrative claim. 28 U.S.C. § 2675(b) (2015). An exception to this general rule exists when "the increased amount is based upon newly discovered evidence not reasonably discoverable at the time of presenting the claim to the federal agency, or upon allegation and proof of intervening facts, relating to the amount of the claim." 28 U.S.C. § 2675(b). The plaintiff has the burden of proving the existence of newly discovered evidence or intervening facts. Spivey v. United States, 912 F.2d 80, 85 (4th Cir. 1990).
Once a defendant has filed a responsive pleading — as is the case here — a plaintiff may amend their "pleading only with the opposing party's written consent or the court's leave. The court should freely give leave when justice so requires." FED. R. CIV. P. 15(a) (2015). "Although the rule should be interpreted with `extreme liberality,' leave to amend should not be granted automatically." Jackson v. Bank of Hawaii, 902 F.2d 1385, 1387 (9th Cir. 1990)(internal citation omitted). A trial court may deny the motion if permitting amendment would prejudice the opposing party, produce an undue delay in litigation, result in futility for lack of merit, is sought by plaintiffs in bad faith or with a dilatory motive, or the plaintiffs have filed numerous amended complaints. Foman v. Davis, 371 U.S. 178, 182 (1962); DCD Programs, Ltd. v. Leighton, 833 F.2d 183, 186 (9th Cir. 1987). Prejudice to the opposing party carries the "greatest weight" in determining whether to deny leave to amend. Eminence Capital, LLC v. Aspeon, Inc., 316 F.3d 1048, 1052 (9th Cir. 2003). Whether to grant leave to amend lies within the sound discretion of the trial court. United States v. Webb, 655 F.2d 977, 979 (9th Cir. 1981). In exercising this discretion, however, the court "must be guided by the underlying purpose of Rule 15 to facilitate decision on the merits, rather than on the pleadings or technicalities." Id.
The Federal Rules of Civil Procedure provide that a scheduling order "may be modified only for good cause and with the judge's consent." FED. R. CIV. P. 16(b)(4) (2015). Further, the Local Rules mandate that "objections to any court imposed deadline must be raised by motion and must: (1) Show good cause why the deadlines should be modified[;] (2) Show effective prior use of time[;] (3) Recommend a new date for the deadline in question [; and] (4) Show the impact of the proposed extension upon other existing deadlines, settings, or schedules." LR 16-3(a) (2015). The primary factor in determining whether good case exists is whether the party seeking amendment was diligent in pursuing the amendment. Johnson v. Mammoth Recreations, Inc., 975 F.2d 604, 609 (9th Cir. 1992). If the party who seeks modification of the scheduling order did not act diligently in doing so, "the inquiry should end," and the motion should be denied. Id.
Priest moves to amend the Complaint to include damages related to the Surgery and Therapy. She asserts the damages resulted from new, unforeseen, and materially significant intervening facts and justify the amendment. The United States argues the Surgery was not an intervening fact, the Surgery was foreseeable, evidence in the record does not support the increase in damages, and the filing of the Supplement was not timely under Rule 16. The court will discuss each issue in turn.
For Priest to prevail on her request to amend the Complaint to allege damages in excess of those sought in the Claim, she must prove the Surgery, Therapy, and increased non-economic damages resulting therefrom, fall within the exceptions for newly discovered evidence or intervening facts under the Act. While many courts recognize these two exceptions are distinct, with "newly discovered evidence" referring to evidence existing, but not discoverable, at the time a claim is filed and "intervening facts" relating to information or events arising after the filing of the claim, the key issue for both exceptions is foreseeability. Salas v. United States, Civil No. 12cv0337 JAH(BLM), 2013 WL 6244144, at *3 (S. D. Cal. Dec. 2, 2013) (citing Lowry v. United States, 958 F.Supp. 704, 710-11 (D. Mass. 1997)); Richardson v. United States, 841 F.2d 993, 999 (9th Cir. 1988). If the condition, or required medical treatment, was reasonably foreseeable at the time the claim was filed, an increase in damages will not be allowed. Richardson, 841 F.2d at 999.
Information a plaintiff could have discovered with reasonable diligence does not qualify as newly discovered evidence or intervening facts. Id. (citing Low v. United States, 795 F.2d 466, 470 (5th Cir. 1986)). Furthermore, when a claimant is on notice, through existing medical information and physician advice of worst case scenarios based on established diagnoses, the eventual materialization of such scenarios does not qualify as newly discovered evidence. Michels v. United States, 31 F.3d 686, 688 (8th Cir. 1994); Low, 795 F.2d at 471. However, a claimant "should not be charged with knowing what the doctors could not tell them." Fraysier v. United States, 766 F.2d 478, 481 (11th Cir. 1985). The worsening of a known injury in ways not reasonably discoverable to a physician or claimant can support an increase in damages under the Act. Michels, 31 F.3d at 688. In the words of the Eleventh Circuit, "[t]he purpose of section 2675(b) undoubtedly is to limit claims on which there is only a change in valuation between the agency claim and the lawsuit. Fraysier, 766 F.2d at 480.
Priest was injured in November 2011. She immediately began treatment for her injuries, including that to her right elbow, that continued through late March, 2012. In May 2012, Priest sought treatment for increased pain in her right elbow and tingling in her right fingers. Dr. Durkan noted the ulnar nerve was perched slightly on the edge of normal. Testing performed later that month revealed normal functioning of the ulnar nerve with irritation due to local tissue damage. At Dr. Durkan's recommendation, Priest participated in a second round of physical therapy, which she completed in late July 2012. Thereafter, Dr. Durkan expected Priest would have complete resolution within eighteen months with occasional increases in symptoms based on activities, and would likely not need surgical intervention. On August 2, 2012, the physical therapist noted improvements in Priest's symptoms and her ability to tolerate resumption of many activities. Priest filed the Claim in September 2013 and the Complaint in March 2014.
In June of 2014, after giving her right elbow time to heal on its own, Priest again sought treatment complaining of constant pain and numbness. Dr. Mirarchi eventually diagnosed a subluxation of the right ulnar nerve upon flexion and discussed surgical options. He performed the Surgery on October 3, 2014.
At the time she filed the Claim, Priest had experienced improvement with physical therapy and it appeared, in accordance with Dr. Durkan's advice, her right elbow would heal on its own without the need for surgical intervention. It was not until after she filed the Claim, and the recommended eighteen-month recovery period expired, that Priest became aware her right elbow would not heal on its own due but would require surgery to resolve the issue. Priest reasonably relied on Dr. Durkan's opinion the irritation to the tissue damage causing inflammation of the ulnar nerve would be resolved with physical therapy and time, which opinion was supported by Priest's improvement during and after physical therapy. Based on this evidence, the court finds the unexpected need for surgery is a newly discovered evidence or intervening fact not reasonably foreseeable at the time Priest filed the Claim.
This finding is supported by, and consistent with, holdings of other courts in what have been labeled "change in expectation" cases. The general consensus in these cases is that "just because an outcome may be conceivable does not render it reasonably foreseeable." Resnansky v. United States, Case No. 13-cv-05133-DMR, 2015 WL 1968606, at *4 (N. D. Cal. May 1, 2015). On February 1, 2013, Resnansky suffered injuries to her left wrist and right ankle when she was struck by a vehicle owned by the United States and driven by a United States employee. Id. at *1. Resnansky's wrist fracture was repaired with surgery while her ankle fracture was treated with a protective boot and physical therapy. Id. at *2. On May 1, 2013, Resnansky filed an administrative claim seeking $1,000,000 in damages and, on November 4, 2013, filed her complaint. Id. at *1. By mid-November 2013, Resnansky's wrist had not healed, continued to be painful, and required a second surgery which occurred on December 17, 2013. Id. at *2. Similarly, after completing physical therapy in August 2013, Resnansky's right ankle began bothering her as she attempted to increase the duration of her exercise. Id. She consulted with her doctor in June 2014, who performed surgery in September 25, 2014. Id. Subsequently, Resnanksy moved to increase her damage claim to $4,000,000. Id.
The Resnansky court found the ankle surgery was not reasonably foreseeable based on the physician's report the ankle showed good evidence of healing and the lack of evidence of deterioration prior the filing of the claim. Id. at *6. The court considered the absence of a recommendation of surgery, or a statement surgery would likely be necessary in the future, and the physician's prescribed treatment as evidence the physician believed a conservative course of treatment with emphasis on physical therapy would be sufficient. Id. On the other hand, the court found the second surgery on Resnansky's wrist was reasonably foreseeable. Id. at *7. Despite initial improvement after surgery, Resnansky continued experiencing wrist pain from the date of the initial surgery through November 2013, when she sought additional treatment. Id. The court found Resnansky's knowledge of her ongoing pain and symptoms after the initial surgery and before she filed her administrative claim made the additional treatment foreseeable. Id.
The Resnansky opinion contained a detailed description of the standard applicable to a request to increase damages under 28 U.S.C. § 2675(b), and referenced several other "change in expectation" cases. For example, the court noted in Michels, increased damages were allowed based on a finding the post-claim surgery was not reasonably foreseeable even though the plaintiff's doctor noted a possible, thought not likely, need for future surgery. Resnansky, 2015 WL 1968606, at *4. Similarly, in Smith v. United States, No. C 10-00212 WHA, 2011 WL 4551471 (N. D. Cal. Oct. 3, 2011), a doctor's pre-claim statement "it is conceivable that [plaintiff] might require some surgical intervention in the future but, if the fracture is not severe, this would be rather unlikely" did not make post-claim surgery reasonably foreseeable. Resnansky, 2015 WL 1968606, at *4. The court also noted cases, such as Craig v. United States, No. 00 C 958, 2002 WL 31115604 (N. D. Ill. Sept. 23, 2002), in which a plaintiff's reliance on a treating physician's recommendation of conservative, non-surgical treatment seemingly successful at the time an administrative claim is filed, did not make post-claim surgery, previously not considered a realistic possibility, reasonably foreseeable. Resnansky, 2015 WL 1968606, at *5.
While the Ninth Circuit has not directly addressed this issue, it did reference, with approval, the Fifth Circuit's analysis in Low. See Richardson, 841 F.2d at 999. In Low, the court noted it had previously "allowed an increase over the amount administratively claimed when, at the time the claim was filed, the claimant did not know and could not have ascertained that an injury would not heal without surgery." Low, 795 F.2d at 470 (citing United States v. Alexander, 238 F.2d 314, 317-38 38 (5th Cir. 1956)). However, the Low court reduced the trial court's award to the amount sought in the administrative claim, finding the limitations resulting from diagnoses of cerebral palsy, seizure disorder, blindness, deafness, and mental retardation were reasonably foreseeable at the time of diagnosis. Low, 795 F.2d 471.
Here, Dr. Durkan recommended conservative treatment involving physical therapy and time, and Priest was experiencing positive results from the treatment at the she filed the Claim. Therefore, despite Dr. Durkan's implication need for surgery in the future was a possibility, surgery was not reasonably foreseeable.
The United States argues Priest's failure to seek treatment for her elbow for nearly two years after she completed physical therapy in July 2012, along with evidence she resumed her regular activities in 2013, establishes Priest's condition improved during this period thereby preventing her from recovering additional non-economic damages. To the contrary, this evidence and conclusion supports a finding the surgery was not reasonably foreseeable. Dr. Durkan advised Priest she should gradually improve over the next eighteen months, with occasional increases in symptoms. That Priest followed this advice, did not seek additional treatment, and attempted to return to regular activities is evidence the conservative treatment was working. However, the symptoms did not totally resolve during this period forcing Priest to seek additional medical treatment and the previously unexpected Surgery.
The United States also asserts Priest admitted in her response to its request for admissions the Surgery was foreseeable. Priest indicated Dr. Durkan's July 2012 statement surgery was probably not necessary implied some likelihood surgery was necessary. This admission is not fatal to Priest's attempt to increase her damages as she only admitted to an implication of some likelihood surgery would be necessary. Evidence of a possible need for future surgery, if such surgery is considered fairly unlikely, does not render the future surgery reasonably foreseeable.
Finally, the United States contends the record does not establish the Surgery and Therapy were the result of the Accident, pointing to other incidents which might have caused the injury. Dr. Mararchi's notes indicate Priest's elbow pain and finger numbness are related to the Accident and Priest experienced symptoms since the time of the Accident. Additionally, Dr. Mararchi's diagnosis appears consistent with that of Dr. Durkan. Priest has presented sufficient evidence, at this stage and for the purpose of her motion to amend, to establish a causal connection between the Accident and the Surgery.
A plaintiff seeking to increase a damage claim under Section 28 U.S.C. § 2675(b) may recover such increased damages only to the extent they are attributable to the newly discovered evidence or intervening facts. Resnansky, 2015 WL 1968606 at *10 (quoting Craig, 2002 WL 31115604, at *5.) Priest has clearly supported her increased economic damages with itemized statements from the medical providers. However, the United States claims the record does not justify a $125,000 increase in non-economic damages in light of Priest's resumption of her ski instruction and real estate work after the Claim.
The sole evidence offered by the United States in support of this argument is Priest's resume, provided to the United States in August 2014, in which Priest represents she has worked in real estate since 2004 and as a ski instructor at Mt. Hood Meadows Ski Resort since 1998. (Jan. 16
Additionally, Priest's requested increase in non-economic damages is likely due, at least in part, to the increase in emotional distress, and pain and suffering resulting from the Surgery and Therapy, which is not contingent on her ability to work in her prior occupations between the filing of the Claim and the Surgery. This case is easily distinguishable from Smith v. United States, No. C 10-00212-WHA 2011 WL 4551471, at *6 (N. D. Cal. Oct. 3, 2011), in which the court held an early diagnosis of post-traumatic stress disorder and initial claim based, in part, on specific allegations of "severe emotional distress and undue hardship," prevented plaintiff from increasing his damages due to additional emotional distress related to additional surgeries. The court reasoned the increased damages related to the precision of the initial diagnosis of post-traumatic stress disorder and was not newly discovered evidence or an intervening fact. Id. Here, there was no diagnosis of an emotional disorder resulting from the Accident. Therefore, the emotional distress caused by the unforeseeable need for the Surgery is not related to an existing diagnosis and constitutes newly discovered evidence or an intervening fact.
The Surgery and Therapy were not reasonably foreseeable at the time the Claim was filed. Priest's alleged economic damages relating to the Surgery and Therapy are adequately supported by the record. Priest also has offered evidence to support her claim for increased non-economic damages as a result of the unexpected continuing limitation in her right elbow, the Surgery, and the Therapy.
The Ninth Circuit has required a plaintiff, after establishing they are entitled to increase their damage claim under 28 U.S.C. § 2675(b), to also comply with Rule 15 of the Federal Rules of Civil Procedure, at least with regard to the timing of the attempt to amend. Richardson, 841 F.2d at 999. See also Resnansky, 2015 WL 1968606, at *9 (district court addressed defendant's arguments the motion was filed untimely and unanticipated under Rule 15 after finding increase of damages appropriate under section 2675(b)).
The United States does not argue the Motion was filed untimely or in bad faith, or resulted in any prejudice. As such, the Motion is proper under Rule 15. The United States does assert the Supplement was filed more than three months after the deadline to amend the pleadings and is, therefore, untimely under Rule 16 of the Federal Rules of Civil Procedure.
On October 6, 2014, the court ordered the parties to file any amendments to the pleadings by January 5, 2015. Priest filed the Supplement on March 30, 2015, more than three months after the deadline. In the Supplement, Priest seeks leave to the amend the Motion to include updated figures for the Therapy and a follow-up visit to Dr. Mirarchi.
First, the court is not convinced Rule 16 applies to the Supplement, which seeks merely to provide definite amounts previously estimated in the timely-filed Motion. Second, courts have allowed plaintiffs to increase their damage amounts in actions under the Act up to and through trial without considering the timeliness of the motion. See Resnansky, 2015 WL 1968606, at *9 ("Courts have permitted plaintiffs to recover in excess of the amounts stated in their administrative claims at various stages of lawsuits, including after trial, without requiring those plaintiffs to move separately under Rule 15 to amend their pleadings."). Finally, the court finds good cause exists to allow the filing of the Supplement. Priest was diligent in filing the motion. Her follow-up visit with Dr. Mirarchi occurred on March 10, 2015, and she filed the Supplement less than three weeks later.
Priest's motion (#16) to amend the Complaint and her supplement (#35) to the Motion should be GRANTED.
The above Findings and Recommendation will be referred to a United States District Judge for review. Objections, if any, are due
If objections are filed, a response to the objections is due fourteen days after the date the objections are filed and the review of the Findings and Recommendation will go under advisement on that date.