Two years of litigation has achieved a $7.5 million settlement in a birth injury lawsuit initiated by the grandparents of a child born with cerebral palsy.  As reported in the Chicago Sun Times, the medical malpractice lawsuit was brought against Christ Medical Center and treating obstetricians for their respective roles in the way they responded to a situation involving signs of fetal distress of a baby born at the hospital in 2002.

As with many birth injury lawsuits, the allegations of medical malpractice centered around the delay of hospital staff and treating physicians had with respect to taking action upon learning of the potential dangers facing the baby. The delay in responding to signs of fetal distress was blamed for oxygen deprivation and ensuing complications including brain damage and cerebral palsy.

Now, 9-years-old, and with significant care-related needs, the funds from the settlement can be used to provide for the extensive skilled-care needs that this child will need for the remainder of her life.  In addition to the care, some of the funds will likely be used to modify the child's home to make it more accommodating for specialized physical needs such a wheelchair access.

Significant Settlements For Birth Injury Cases:

While settlements such as this are indeed eye-popping for their significance, it is important to remember that the funds from the settlement of birth injury lawsuit are intended to provide for the needs of these children for the remainder of their lives.  In the case of a child with cerebral palsy, many physicians will opine that these children will have a normal life expectancy --- similar other children their age.

Additionally, in situations involving funds awarded to children in cerebral palsy or other types of birth injury cases, the funds are customarily put into a trust or other type of restrictive account where a only a parent or guardian can access the funds for the direct needs of the child.  

Many times, a judge oversees the administration of the funds to further protect the child from improper acts of a third-party--- and to assure that the funds last protect the needs of the child in the future.  Usually, an annual accounting is ordered to be filed with the court where all expenditures and trust income is accounted for in order to detect any issues as quickly as feasible.

Further distinguishing funds set-aside for a child's birth injury, is how the funds are to be invested.  Unlike accounts used for investment and growth, accounts established for special needs children are intended to utilize extremely conservative--- and inherently safer--- types of investment vehicles to further assure the needs of the child can be provided for in the future regardless of the overall economic volatility.

Related:

A lack of oxygen, or Hypoxic Ischemic Encephalopathy, is the frequent cause of baby brain damage at birth

Parents Settle Medical Malpractice Lawsuit Where Child Suffers Brain Injury At Birth

Life Expectancy: Cerebral Palsy

Life expectancy in children with cerebral palsy, BMJ 1994; 309 doi: 10.1136/bmj.309.6952.431 (Published 13 August 1994)

Diagnosing Cerebral Palsy