Supreme Court vindicates attorneys in lawsuit

Tuesday, Nov. 23, 2004 | 8:50 a.m.

CARSON CITY -- The Nevada Supreme Court on Monday overturned a $3.25 million judgment against two Las Vegas attorneys who handled a medical malpractice case.

The court said there was insufficient evidence to justify the judgment against W. Randall Mainor and Richard A. Harris, former law partners.

They had taken on the case of Jason Nault, a former baggage handler for Southwest Airlines, who was left in a permanent vegetative state after anesthesia equipment failed during his hernia surgery.

The two attorneys filed suit in 1994 in behalf of Jason Nault's wife, Louise Nault, who was pregnant. After two years, a $17 million settlement was reached in which the lawyers received 40 percent or about $6.8 million.

Annuities were set up for $7 million for the care of Jason and for his wife and daughter. In addition Louise received $2.5 million.

The $2.5 million annuity for Jason provided for $32,000 per month. The wife's annuity cost $4 million with an expected payout of $24.8 million. The difference in cost between Jason's and the wife's annuity was based on their different life expectancies. And the annuity for the daughter Rene cost $437,348 with payments beginning when she reached 18. The lifetime payout was expected to be $7.4 million.

The settlement provided for 14 percent of the gross proceeds going to Jason, Louise with 38 percent and the lawyers with 40 percent.

The plan was approved by District Judge Lee Gates.

Louise housed Jason from December 1996 to May 1997. She asked Jason's parents, Wendy and Philip, to care for Jason because she wanted to return to college to get her degree. Then there was a falling out between the parents and the wife.

The parents gained guardianship and control over Jason and estate and filed suit claiming Jason was entitled to 80 percent of the settlement.

As guardians, the parents used Jason's settlement money for a down payment on a 3,500-square-foot home for Jason, but they put the house's title in their own names because, they said, the mortgage company said Jason had poor credit. The parents also paid themselves a $4,500 monthly salary and took $5,000 a month from the annuity to pay for the home.

The District Court later ordered the parents to put the house in Jason's name and reduced their salary to $1,500 per month.

The parents filed suit against the wife and the lawyers, saying the attorneys had a conflict of interest representing both their injured son and the wife. The suit also alleged the wife and the lawyers conspired to deprive Jason of his money.

The parents settled with the wife for no money, but but they pursued a malpractice case against Mainor and Harris. A District Court jury awarded the parents $3.25 million.

The Supreme Court, in voiding the jury verdict, said "Mainor's efforts resulted in a $17 million settlement, which provided Jason with more than enough to meet his needs for the rest of his life."

The court also dismissed the testimony of an expert witness who said Jason should have received 80 percent of the settlement instead of 14 percent.

The court said "this testimony was highly speculative and lacked foundation in that it was not based on any treatise of law or on Nevada law regarding apportionment of settlement proceeds between an injured spouse and his wife."

The court said Jason's mother and co-guardian conceded at trial that although little was left over per month from Jason's annuity, all of Jason's needs had been met by his annuity.

Mainor, who split with Harris about one year ago, said the Nevada Suprme Court decision was a "great relief."

"This was about my integrity -- not about money," Mainor said.

He said the $17 million settlement was the biggest ever in a single personal injury case in Nevada. The initial newspaper reports of the malpractice suit against him "made me appear villaneous," Mainor said.

He said the Supreme Court "recognized what went on in this case." He said he had no hard feelings against the Nault family and added, "I love that young man (Jason)."

"An injustice has been made right by the Nevada Supreme Court," he said.

The parents also sued another attorney in the case, Joe Rolston and a settlement was reached for him to pay $400,000.