Judge blocks Iowa clinic's bankruptcy declaration following $75M malpractice suit

In October, OB-GYN Associates of Iowa City & Coralville (Iowa) filed for bankruptcy following a malpractice judgment of $97.4 million. Now, a federal judge has blocked the clinic's efforts, according to an April 6 report from the Sioux City Journal.

In March 2022, an Iowa jury awarded Kathleen and Andrew Kromphardt $97.4 million in damages after they alleged their son sustained brain damage in the hours leading up to his birth because medical workers failed to recognize signs of oxygen deprivation. The award was later reduced to $75.6 million. 

Bankruptcy Judge Anita Shodeen dismissed OB-GYN Associates' bankruptcy claim, ruling there is evidence that the filing is intended to shield the clinic's insurer from a $12 million payout. 

Following the malpractice verdict, the clinic appealed and requested a halt on collection efforts until the appeal could be heard. The Iowa Supreme Court denied the request. 

The Kromphardts' attorney initially challenged the bankruptcy filing, claiming it was filed in "bad faith" to prevent the couple from gaining a financial award. 

The clinic's attorney has filed an appeal on Ms. Shodeen's decision in the case. 

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