Statement Of Damages Served After BK Stay Lifted.

Instead of answering a medical malpractice complaint, a plastic surgeon filed bankruptcy. The plaintiff was granted relief by the bankruptcy court to proceed against the debtor “so long as recovery against debtor is limited to available insurance proceeds.” Plaintiff then served defendant’s insurer with a notice of default hearing, accompanied by a statement of damages which listed $41,800 future medical expenses, $1,400 loss of earning capacity and $250,000 general damages. Courtesy copies were sent to the doctor. The doctor appeared at the default hearing and argued it should not proceed because he had not been served with a statement of damages prior to the entry of default. The trial court rejected the doctor’s argument and awarded plaintiff $203,240, plus costs. In affirming the judgment, the appellate court stated:  “Defendant filed his bankruptcy proceeding prior to entry of default and default judgment in plaintiff’s medical malpractice action. His bankruptcy filing had the effect of automatically staying plaintiff’s action.” (Weakly-Hoyt v. Foster (Cal. App. Fifth Dist.; October 21, 2014) 230 Cal.App.4th 928 [179 Cal.Rptr.3d 734].)