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	New Pressure on Hospital's Insurers to Settle Reardon Cases By Edmund H. Mahony Hartford Courant October 20, 2011 http://www.courant.com/health/connecticut/hc-stfrancis-1021-20111020,0,5284192.story A senior state judicial officer has created new pressure to settle dozens of child sexual abuse claims against St. Francis Hospital by taking the unusual step of authorizing mediators working separately in the state and federal courts to consolidate their efforts. Chief Court Administrator Barbara Quinn's order is likely to direct some of that pressure at The Travelers Companies, which is involved in abuse-related lawsuits in both courts and has most of the hospital's insurance coverage, lawyers familiar with the case said. The victims of hospital endocrinologist Dr. George Reardon and some hospital representatives have questioned Travelers' commitment to resolving cases before they reach trial. In the short term, Quinn's mediation appears to derail plans by the St. Francis insurers to block the Reardon victims from joining a federal lawsuit that could determine the terms of the hospital's coverage — and the amount of money available for future settlements. "Judge Quinn has given St. Francis Hospital and its various liability insurance carriers a tremendous opportunity to resolve the several claims that remain pending in this matter," said attorney Timothy L. O'Keefe, whose Hartford firm represents about 40 of about 65 Reardon victims with pending suits. "We hope they choose to do the right thing here," O'Keefe said. Representatives of the hospital, its insurers and other victims declined comment. The last joint effort in Connecticut to mediate state and federal lawsuits is believed to have taken place in the late 1980s, following the collapse during construction of the L'Ambiance Plaza hotel in Bridgeport. Twenty-eight construction workers died in the 1987 construction accident. Reardon abused as many as 500 children in his hospital office after St. Francis Hospital and Medical Center appointed him its chief of endocrinology in 1963. He held the position for about 30 years, until two of his earliest victims, then adults, complained to state medical regulators. The victims claim their abuse was the result of hospital negligence. In her order, Quinn designated Superior Court Judge Robert Holzberg and attorney James Robertson as special masters and authorized them to join U.S. Magistrate Judge William Garfinkel "in a joint state and federal mediation" of all pending cases related to Reardon's abuse. The order, issued Wednesday, also authorizes Garfinkel to mediate cases pending in state court. Garfinkel already has been assigned by U.S. District Judge Mark R. Kravitz to mediate the federal lawsuit in which St. Francis and three of its insurers are disputing the terms and condition of their coverage. Garfinkel has scheduled a settlement conference for insurance lawyers on Nov. 17. The insurers, beneficiaries of millions of dollars in hospital premiums, are each prepared to argue that someone else should pay most of whatever the victims ultimately are awarded. If the insurers succeed in reducing their obligations to pay damage awards, responsibility for the difference could fall to the hospital. By including Garfinkel in the mediation of state suits, Quinn brings a negotiator into the case with a track record in sexual abuse cases. Previously, Garfinkel's mediation settled about 40 lawsuits against the Catholic church by child victims of clergy. The confidential settlements ran from approximately $100,000 to about $2 million, depending on the severity of abuse, according to people familiar with the matter. The Reardon victims have been attempting to intervene in the federal insurance lawsuit since August, in part to put their state cases in front of Garfinkel. Lawyers familiar with the matter say the plaintiffs have confidence both in Garfinkel's skill as a mediator and the values he has placed on abuse settlements. Kravitz has said he will not rule on the motions to intervene until after the November settlement conference. But Quinn's order appears to put the victims' cases before Garfinkel, regardless of the eventual decision on intervention, according to lawyers familiar with the matter. Holzberg was involved in an effort to mediate settlements in the abuse suits about three years ago, not long after many of the suits were filed. That effort failed, as have subsequent formal and informal efforts at mediation, including one by a private firm. Robertson has been involved in the case as a special master for about a year, but his involvement has been in attempting to resolve the dispute between the hospital and the victims on the disclosure of hospital records and documents. Before his death in 1998, Reardon gained access to his victims by persuading parents that he was conducting a long-term, pediatric growth study that had benefits for all children. It has since been proven that the so-called study was a sham. Some victims have said they were too young at the time of their experiences with Reardon to realize that his abuse was not medical research. Nine years after his death, new owners of Reardon's West Hartford home found, hidden behind a false wall, as many as 60,000 pornographic photographs Reardon had taken of his victims. About 150 victims who could document their abuse through the photographs sued the hospital for failing to supervise Reardon. About 60 suits were dismissed because they were filed outside the statute of limitations. About 90 suits were permitted to proceed. Of those 90, about 65 remain pending. The hospital contends that Reardon deceived it, just as he deceived parents of his victims. St. Francis also argues that it had no legal obligation to monitor Reardon's so-called growth study because it wasn't the sort of research that presented a potential hazard to subjects. Contact: emahony@courant.com
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