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On June 21, 1989, at the Memorial Hospital in Providence,
Rhode Island, Dr. Douglas J. Glod operated on Mrs. Rozpad's right
foot. Mrs. Rozpad was scheduled, however, to have an operation
on her left foot. The Rozpads filed a medical malpractice claim
in the Superior Court of Rhode Island against the Memorial
Hospital and Dr. Glod. The Rozpads settled their dispute with
the Memorial Hospital, but did not settle with Dr. Glod.
On May 8, 1992, a jury rendered a verdict against Dr. Glod
and awarded $2 million to Mrs. Rozpad and $65,000 to Mr. Rozpad.
As required by R.I. Gen. Laws sec. 9-21-10 (1985), the court
added statutory prejudgment interest to the awards. On May 18,
1992, Dr. Glod filed a motion for a new trial or, in the
alternative, a remittitur of the judgment. On August 19, 1992,
the trial court ordered a new trial, solely on the issue of
damages, unless Mrs. Rozpad agreed to remit all of the jury's
verdict in excess of $650,000. On August 27, 1992, Mrs. Rozpad
consented to the remittitur. On September 14, 1992, the trial
court entered judgments for Mrs. Rozpad and Mr. Rozpad of
$650,000 and $65,000, respectively, plus statutory prejudgment
interest totaling $250,250.
Following the judgment, the Rozpads and Dr. Glod settled
their dispute. The settlement agreement required Dr. Glod to pay
the Rozpads $800,000 for a release and discharge of any and all
past and future claims. During the settlement negotiations, the
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