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California Code of Civil Procedure Section 667.7

Legal Research Home > California Laws > Code of Civil Procedure > California Code of Civil Procedure Section 667.7

(a) In any action for injury or damages against a provider
of health care services, a superior court shall, at the request of
either party, enter a judgment ordering that money damages or its
equivalent for future damages of the judgment creditor be paid in
whole or in part by periodic payments rather than by a lump-sum
payment if the award equals or exceeds fifty thousand dollars
($50,000) in future damages. In entering a judgment ordering the
payment of future damages by periodic payments, the court shall make
a specific finding as to the dollar amount of periodic payments which
will compensate the judgment creditor for such future damages. As a
condition to authorizing periodic payments of future damages, the
court shall require the judgment debtor who is not adequately insured
to post security adequate to assure full payment of such damages
awarded by the judgment. Upon termination of periodic payments of
future damages, the court shall order the return of this security, or
so much as remains, to the judgment debtor.
   (b) (1) The judgment ordering the payment of future damages by
periodic payments shall specify the recipient or recipients of the
payments, the dollar amount of the payments, the interval between
payments, and the number of payments or the period of time over which
payments shall be made. Such payments shall only be subject to
modification in the event of the death of the judgment creditor.
   (2) In the event that the court finds that the judgment debtor has
exhibited a continuing pattern of failing to make the payments, as
specified in paragraph (1), the court shall find the judgment debtor
in contempt of court and, in addition to the required periodic
payments, shall order the judgment debtor to pay the judgment
creditor all damages caused by the failure to make such periodic
payments, including court costs and attorney's fees.
   (c) However, money damages awarded for loss of future earnings
shall not be reduced or payments terminated by reason of the death of
the judgment creditor, but shall be paid to persons to whom the
judgment creditor owed a duty of support, as provided by law,
immediately prior to his death. In such cases the court which
rendered the original judgment, may, upon petition of any party in
interest, modify the judgment to award and apportion the unpaid
future damages in accordance with this subdivision.
   (d) Following the occurrence or expiration of all obligations
specified in the periodic payment judgment, any obligation of the
judgment debtor to make further payments shall cease and any security
given, pursuant to subdivision (a) shall revert to the judgment
debtor.
   (e) As used in this section:
   (1) "Future damages" includes damages for future medical
treatment, care or custody, loss of future earnings, loss of bodily
function, or future pain and suffering of the judgment creditor.
   (2) "Periodic payments" means the payment of money or delivery of
other property to the judgment creditor at regular intervals.
   (3) "Health care provider" means any person licensed or certified
pursuant to Division 2 (commencing with Section 500) of the Business
and Professions Code, or licensed pursuant to the Osteopathic
Initiative Act, or the Chiropractic Initiative Act, or licensed
pursuant to Chapter 2.5 (commencing with Section 1440) of Division 2
of the Health and Safety Code; and any clinic, health dispensary, or
health facility, licensed pursuant to Division 2 (commencing with
Section 1200) of the Health and Safety Code. "Health care provider"
includes the legal representatives of a health care provider.
   (4) "Professional negligence" means a negligent act or omission to
act by a health care provider in the rendering of professional
services, which act or omission is the proximate cause of a personal
injury or wrongful death, provided that such services are within the
scope of services for which the provider is licensed and which are
not within any restriction imposed by the licensing agency or
licensed hospital.
   (f) It is the intent of the Legislature in enacting this section
to authorize the entry of judgments in malpractice actions against
health care providers which provide for the payment of future damages
through periodic payments rather than lump-sum payments. By
authorizing periodic payment judgments, it is the further intent of
the Legislature that the courts will utilize such judgments to
provide compensation sufficient to meet the needs of an injured
plaintiff and those persons who are dependent on the plaintiff for
whatever period is necessary while eliminating the potential windfall
from a lump-sum recovery which was intended to provide for the care
of an injured plaintiff over an extended period who then dies shortly
after the judgment is paid, leaving the balance of the judgment
award to persons and purposes for which it was not intended. It is
also the intent of the Legislature that all elements of the periodic
payment program be specified with certainty in the judgment ordering
such payments and that the judgment not be subject to modification at
some future time which might alter the specifications of the
original judgment.

Last modified: February 13, 2012