Webster v. CDI Indiana, LLC, No. 18-3080 (7th Cir. 2019)Annotate this Case
Courtney had a CT scan performed at CDI’ diagnostic imaging facility. The radiologist, Webster, an independent contractor hired by MSC, missed Courtney’s rectal cancer. Courtney's cancer festered for over a year before being diagnosed, having metastasized to her lungs and liver. CDI claimed that it could not be held liable because CDI did not directly employ Webster. The district court rejected this argument and applied Indiana’s apparent agency precedent, which instructs that a medical provider is liable if a patient reasonably relied on its apparent authority over the wrongdoer. The jury returned a $15 million verdict. The Seventh Circuit affirmed, first explaining that CDI had not registered under Indiana’s Medical Malpractice Act, which limits liability for registered qualified health care providers and requires the presentation of a proposed complaint to a medical review panel before an action is commenced in court. MSC and Walker had registered as qualified health care providers, so the Websters had filed a complaint against them with the Indiana Department of Insurance. Courtney testified that she had no idea about the contractual relationships among MSC, CDI, and Dr. Walker and she was never provided information that the physician who would be interpreting her CT scan was not subject to CDI’s control or supervision.