FORT CAMPBELL, KY (CLARKSVILLE NOW) – A newly filed federal settlement shows the Department of Justice agreed to pay $11 million to the family of a Fort Campbell soldier after their daughter suffered a permanent brain injury during delivery at Blanchfield Army Community Hospital.
The settlement stems from a federal Tort Claims Act lawsuit filed by the child’s parents, Joshua Madrid and Sarah Panter, in August 2024. According to a news release from the National Trial Law Firm, who represented the family, the child “suffered a permanent brain injury due to negligence during labor and delivery” at the hospital.
The injured girl, now 4, lives with severe hypoxic ischemic encephalopathy (HIE), spastic quadriplegic cerebral palsy, intractable epilepsy, and cortical visual impairment. She cannot walk or sit unsupported and uses a feeding tube for nutrition. “Her life care plan calls for licensed practical nurse level care 24 hours a day for the rest of her life,” the news release said.
Clarksville Now has reached out to BACH for comment.
Settlement reached months after April trial
The case was tried in April. According to the law firm, the DOJ agreed to settle after a full trial while parties awaited the judge’s decision. The DOJ formally executed the settlement on Aug. 24, according to the settlement agreement obtained by Clarksville Now
“This military mother was admitted to Blanchfield Army Community Hospital with a healthy baby, but because government providers failed to respond to hours of fetal distress, her baby suffered a catastrophic and permanent brain injury. This case is about holding the government accountable and giving this military family the lifelong care and support they will need,” said Laurie Higginbotham, the partner at National Trial Law.
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“It took an administrative claim, a lawsuit, a trial, and the approval of the associate attorney general to get this family to the finish line,” said Tom Jacob, who also represented the family. “That is a long road for an amazing military family who never stopped fighting for their child.”
Settlement includes $6.5 million upfront and long-term annuity payments
The settlement agreement said the child’s family will receive $6.5 million in “upfront cash.” Their attorney will “facilitate the disbursement” and “escrow” the full value of any known liens or reimbursement claims, including Medicaid and Medicare. This upfront cash cannot be paid to the family until those the claims are resolved or paid, according to the settlement.
The family is also receiving $4.5 million for an annuity contract purchased through Arcadia Settlements Group. This money will be distributed one month after the purchase date as monthly payments of $11,499 for 40 years, “increasing at 2.5% compounded annually after the first year.”
The settlement also stipulates that if the child passes away during 40-year payment period, any remaining payments will revert to the U.S. Treasury rather than the family. The agreement also prevents the family from filing any “future claims for survival or wrongful death.”
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