Reilly v. Secretary of Health and Human Services

In the United States Court of Federal Claims
OFFICE OF SPECIAL MASTERS
No. 09-489V
Filed: November 6, 2017

* * * * * * * * * * * * * * *
DULCE AND SEAN REILLY, parents * Special Master Sanders
and natural guardians of E.R., a minor, *
* Decision on Proffer; Damages; Diphtheria-
* Tetanus-Acellular-Pertussis (“DTaP”)
Petitioners, * Vaccine; Infantile Spasms.
*
v. *
*
SECRETARY OF HEALTH *
AND HUMAN SERVICES, *
*
*
Respondent. *
* * * * * * * * * * * * * * *

Edward M. Kraus, Law Offices of Chicago Kent, Chicago, IL, for Petitioners.
Ryan D. Pyles, United States Department of Justice, Washington, DC, for Respondent.

DECISION AWARDING DAMAGES1

On July 27, 2009, Dulce and Sean Reilly (“Petitioners”) filed a petition on behalf of their
minor child, E.R., pursuant to the National Vaccine Injury Compensation Program.2 42 U.S.C.
§§ 300aa-10 to -34 (2012). Petitioners allege that the diphtheria-tetanus-acellular-pertussis
(“DTaP”) vaccine administered on June 21, 2007 caused E.R. to suffer from a seizure disorder.
Ruling Entitlement (May 31, 2016) at 1-2, ECF No. 107.

1
This decision shall be posted on the United States Court of Federal Claims’ website, in
accordance with the E-Government Act of 2002, 44 U.S.C. § 3501 note (2012) (Federal
Management and Promotion of Electronic Government Services). In accordance with Vaccine
Rule 18(b), a party has 14 days to identify and move to delete medical or other information that
satisfies the criteria in § 300aa-12(d)(4)(B). Further, consistent with the rule requirement, a
motion for redaction must include a proposed redacted decision. If, upon review, the
undersigned agrees that the identified material fits within the requirements of that provision, such
material will be deleted from public access.
2
The Program comprises Part 2 of the National Childhood Vaccine Injury Act of 1986, Pub. L.
No. 99-660, 100 Stat. 3758, codified as amended, 42 U.S.C. §§ 300aa-10 to -34 (2012)
[hereinafter “Vaccine Act” or “the Act”]. Hereinafter, individual section references will be to 42
U.S.C. § 300aa of the Act.
 Special Master Hamilton-Fieldman issued a Ruling on Entitlement on May 31, 2016. Id.
She held that Petitioners’ theory and medical records satisfied the three-prong test in Althen v.
Secretary of Health and Human Services, 418 F.2d 1274, 1278 (Fed. Cir. 2005), and Petitioners
were therefore entitled to compensation. Id. at 19-22.

On June 22, 2016, Special Master Hamilton-Fieldman issued a Damages Order
encouraging the parties to identify and provide information that will be “necessary to assess the
appropriate amount of compensation to be awarded in this case.” Dam. Order at 7, ECF No. 111.
The case was reassigned to the undersigned on January 10, 2017. Not. Reassignment, ECF No.
115.

Respondent filed a Proffer on Award of Compensation (“Proffer”) on November 2, 2017.
Proffer, ECF No. 126. Based on the record as a whole, the undersigned finds that Petitioners are
entitled to an award as stated in the Proffer.

Pursuant to the terms stated in the Proffer, attached as Appendix A, the undersigned
awards Petitioners:

A. A lump sum payment of $1,268,787.00, (representing compensation for lost
future earnings ($750,984.00), pain and suffering ($250,000.00), and life care
expenses for Year One ($267,803.00)), in the form of a check payable to
[P]etitioners as guardians/conservators of the estate of E.R., for the benefit of
E.R.; and

B. A lump sum payment of $130,000.00, representing compensation for past
unreimbursable expenses, [in the form of a check] payable to Dulce Reilly and
Sean Reilly, [P]etitioners; and

C. An amount sufficient to purchase an annuity contract, subject to the conditions
described [in Section II.C.], that will provide payments for the life care items
contained in the life care plan, as illustrated by the chart [attached to the
Proffer], and paid to the life insurance company from which the annuity will be
purchased.

Proffer 3-5.

In the absence of a motion for review filed pursuant to RCFC Appendix B, the clerk of
the court SHALL ENTER JUDGMENT herewith.3

IT IS SO ORDERED.

3
Pursuant to Vaccine Rule 11(a), entry of judgment is expedited by the parties’ joint filing of
notice renouncing the right to seek review.

2
s/Herbrina D. Sanders
Herbrina D. Sanders
Special Master

3
 IN THE UNITED STATES COURT OF FEDERAL CLAIMS
OFFICE OF SPECIAL MASTERS

DULCE and SEAN REILLY, parents and
natural guardians of E.R., a minor,

Petitioners,
No. 09-489V
v. Special Master Herbrina Sanders
ECF
SECRETARY OF HEALTH AND
HUMAN SERVICES,

Respondent.

RESPONDENT’S PROFFER ON AWARD OF COMPENSATION

Respondent submits the following recommendations regarding items of compensation to

be awarded under the Vaccine Act.

I. Items of Compensation

A. Life Care Items

The parties engaged life care planners Tresa Johnson, RN, BSN, CNLCP, and M.

Virginia Walton, RN, MSN, FNP, CNLCP, to provide an estimation of E.R.’s future

vaccine-injury related needs, and the parties’ planners came to a joint consensus regarding

appropriate items of care. All items of compensation identified by the parties’ joint life care plan

dated October 25, 2017, are supported by the evidence, and are illustrated by the chart entitled

Summary of Life Care Items, attached hereto as Tab A. Respondent proffers that E.R. should be

awarded all items of compensation set forth in the joint life care plan and illustrated by the chart

attached at Tab A. Petitioners agree.

1
 B. Lost Earnings

The parties agree that based upon the evidence of record, E.R. will never be gainfully

employed. Therefore, respondent proffers that E.R. should be awarded full lost earnings as

provided under the Vaccine Act, 42 U.S.C. § 300aa-15(a)(3)(B). Respondent proffers that the

appropriate award for E.R.’s lost future earnings is $750,984.00 at net present value. Petitioners

agree.

C. Pain and Suffering

Respondent proffers that E.R. should be awarded $250,000.00 for actual pain, suffering,

and emotional distress, consistent with the statutory cap on awards for this element of damages.

See 42 U.S.C. § 300aa-15(a)(4). Petitioners agree.

D. Past Unreimbursable Expenses

Evidence supplied by petitioners document their expenditure of past unreimbursable

expenses related to E.R.’s vaccine-related injury. Respondent proffers that petitioners should be

awarded past unreimbursable expenses in the amount of $130,000.00. Petitioners agree.

E. Medicaid Lien

To the best of respondent’s knowledge and upon the representation of petitioners, E.R.

has never received Medicaid benefits. Accordingly, there is no Medicaid lien.

F. Attorneys’ Fees and Costs

This proffer does not address final attorneys’ fees and costs. Petitioners are entitled to

reasonable attorneys’ fees and costs, to be determined at a later date upon petitioners filing

substantiating documentation.

2
II. Form of the Award

The parties recommend that the compensation provided to E.R. should be made through a

combination of one-time lump sum payments and future annuity payments as described below,

and request that the Special Master’s decision and the Court’s judgment award the following for

all compensation1 available under 42 U.S.C. § 300aa-15(a).

Respondent proffers and petitioners agree that an award of compensation include the

following elements:

A. A lump sum payment of $1,268,787.00, (representing compensation for lost future

earnings ($750,984.00), pain and suffering ($250,000.00), and life care expenses for Year One

($267,803.00)), in the form of a check payable to petitioners as guardians/conservators of the

estate of E.R., for the benefit of E.R. No payment shall be made until petitioners provide

respondent with documentation establishing that they have been appointed as the

guardians/conservators of the estate of E.R.;

B. A lump sum payment of $130,000.00, representing compensation for past

unreimbursable expenses, payable to Dulce Reilly and Sean Reilly, petitioners; and

C. An amount sufficient to purchase an annuity contract,2 subject to the conditions

described below, that will provide payments for the life care items contained in the life care plan,

as illustrated by the chart at Tab A, attached hereto, and paid to the life insurance company3 from

1
Should E.R. die prior to entry of judgment, respondent would oppose any award for
future medical expenses, future lost earnings and future projected pain and suffering and the
parties reserve the right to move the Court for appropriate relief.
2
To satisfy the conditions set forth herein, in respondent’s discretion, respondent may
purchase one or more annuity contracts from one or more life insurance companies.
3
The Life Insurance Company must have a minimum of $250,000,000 capital and
surplus, exclusive of any mandatory security valuation reserve. The Life Insurance Company
must have one of the following ratings from two of the following rating organizations:

3
which the annuity will be purchased.4 Compensation for Year Two (beginning on the first

anniversary of the date of judgment) and all subsequent years shall be provided through

respondent’s purchase of an annuity, which annuity shall make payments directly to petitioners

as guardian/conservators of the estate of E.R., only so long as E.R. is alive at the time a

particular payment is due. At the Secretary’s sole discretion, the periodic payments may be

provided to petitioners in monthly, quarterly, annual or other installments. Annual totals set

forth in the far-right column of the chart at Tab A describe only the total yearly sum to be paid

for the benefit of E.R. and do not require that the payment be made in one annual installment.

1. Growth Rate

Respondent proffers that a four percent (4%) growth rate should be applied to all life care

items. Thus, the benefits illustrated in the chart at Tab A that are to be paid through annuity

payments should grow at four percent (4%) compounded annually from the date of judgment.

2. Life-Contingent Annuity

Petitioners as guardians/conservators of the estate of E.R. will continue to receive the

annuity payments from the Life Insurance Company only so long as E.R. is alive at the time that

a. A.M. Best Company: A++, A+, A+g, A+p, A+r, or A+s;

b. Moody's Investor Service Claims Paying Rating: Aa3, Aa2, Aa1, or Aaa;

c. Standard and Poor’s Corporation Insurer Claims-Paying Ability Rating: AA-,
AA, AA+, or AAA;

d. Fitch Credit Rating Company, Insurance Company Claims Paying Ability
Rating: AA-, AA, AA+, or AAA.
4
Petitioners authorize the disclosure of certain documents filed by the petitioners in this
case consistent with the Privacy Act and the routine uses described in the National Vaccine
Injury Compensation Program System of Records, No. 09-15-0056.

4
a particular payment is due. E.R.’s estate shall provide written notice to the Secretary of Health

and Human Services and the Life Insurance Company within twenty (20) days of E.R.’s death.

3. Guardianship

No payments shall be made until petitioners provide respondent with documentation

establishing that they have been appointed as the guardians/conservators of E.R.’s estate. If

petitioners are not authorized by a court of competent jurisdiction to serve as

guardians/conservators of the estate of E.R., any such payment shall be made to the party or

parties appointed by a court of competent jurisdiction to serve as guardian(s)/conservator(s) of

the estate of E.R. upon submission of written documentation of such appointment to the

Secretary.

III. Summary of Recommended Payments Following Judgment

A. Lump Sum paid to petitioners as guardians/conservators
of E.R.’s estate, for the benefit of E.R.: $ 1,268,787.00

B. Lump sum paid to petitioners: $ 130,000.00

C. An amount sufficient to purchase the annuity contract
described above in section II. C.

D. Reasonable final attorneys’ fees and litigation costs: TBD

Respectfully submitted,

CHAD A. READLER
Acting Assistant Attorney General

C. SALVATORE D’ALESSIO
Acting Director
Torts Branch, Civil Division

CATHARINE E. REEVES
Deputy Director
Torts Branch, Civil Division

5
 HEATHER L. PEARLMAN
Assistant Director
Torts Branch, Civil Division

s/ RYAN D. PYLES
RYAN D. PYLES
Trial Attorney
Torts Branch, Civil Division
U.S. Department of Justice
P.O. Box 146
Benjamin Franklin Station
Washington, D.C. 20044-0146
Tel: (202) 616-9847

DATED: November 2, 2017

6
 TAB A

Pet. Ethan Reilly
D.O.B. 12/15/2006

DATE: 10/25/17
TIME: 10:01 AM

SUMMARY OF LIFE CARE ITEMS - JOINT LIFE CARE PLAN dated October 25, 2017

ITEM OF CARE Insurance Medical Ancilliary Medications Supplies Home Transportation Home TOTALS TOTALS OF
Care Services Services Modifications of Items 4.0% ITEMS
with a 4.0% & APPLYING
Growth Rate THE GROWTH
GROWTH RATE 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% RATE

AGE YEAR

11 2017 6,000.00 0.00 7,778.00 3,591.50 9,941.97 137,760.00 2,731.04 100,000.00 267,803 267,803
12 2018 6,000.00 0.00 9,478.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 162,761 169,271
13 2019 6,000.00 0.00 9,478.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 162,761 176,042
14 2020 6,000.00 0.00 9,478.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 162,761 183,084
15 2021 6,000.00 0.00 9,478.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 162,761 190,407
16 2022 6,000.00 0.00 91,750.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 245,033 298,120
17 2023 6,000.00 0.00 91,750.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 245,033 310,045
18 2024 6,000.00 0.00 91,750.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 245,033 322,447
19 2025 6,000.00 0.00 91,750.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 245,033 335,344
20 2026 6,000.00 0.00 91,750.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 245,033 348,758
21 2027 6,000.00 0.00 91,750.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 245,033 362,709
22 2028 6,000.00 0.00 91,750.00 3,591.50 3,200.38 137,760.00 2,731.04 0.00 245,033 377,217
23 2029 9,189.76 0.00 11,888.00 3,591.50 3,200.38 144,000.00 119.84 0.00 171,989 275,361
24 2030 9,189.76 0.00 11,888.00 3,591.50 3,200.38 144,000.00 119.84 0.00 171,989 286,375
25 2031 9,189.76 0.00 8,290.00 3,591.50 3,200.38 144,000.00 119.84 0.00 168,391 291,600
26 2032 13,310.76 424.40 8,290.00 3,338.01 3,200.38 144,000.00 119.84 0.00 172,683 310,993
27 2033 13,456.44 424.40 8,290.00 3,338.01 3,200.38 144,000.00 119.84 0.00 172,829 323,706
28 2034 13,677.48 424.40 8,290.00 3,338.01 3,200.38 144,000.00 119.84 0.00 173,050 337,084
29 2035 13,863.84 424.40 8,290.00 3,338.01 3,200.38 144,000.00 119.84 0.00 173,236 350,945
30 2036 9,577.68 424.40 8,290.00 2,794.01 3,200.38 144,000.00 119.84 0.00 168,406 354,807
31 2037 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 366,545
32 2038 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 381,207
33 2039 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 396,455
34 2040 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 412,313
35 2041 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 428,806
36 2042 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 445,958
37 2043 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 463,796
38 2044 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 482,348
39 2045 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 501,642
40 2046 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 521,708

PAGE 1
 TAB A

Pet. Ethan Reilly
D.O.B. 12/15/2006

DATE: 10/25/17
TIME: 10:01 AM

SUMMARY OF LIFE CARE ITEMS - JOINT LIFE CARE PLAN dated October 25, 2017

ITEM OF CARE Insurance Medical Ancilliary Medications Supplies Home Transportation Home TOTALS TOTALS OF
Care Services Services Modifications of Items 4.0% ITEMS
with a 4.0% & APPLYING
Growth Rate THE GROWTH
GROWTH RATE 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% RATE

AGE YEAR

41 2047 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 542,576
42 2048 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 564,279
43 2049 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 586,850
44 2050 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 610,324
45 2051 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 634,737
46 2052 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 660,127
47 2053 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 686,532
48 2054 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 713,993
49 2055 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 742,553
50 2056 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 772,255
51 2057 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 803,145
52 2058 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 835,271
53 2059 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 868,682
54 2060 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 903,429
55 2061 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 939,566
56 2062 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 977,149
57 2063 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 1,016,235
58 2064 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 1,056,884
59 2065 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 1,099,159
60 2066 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 1,143,126
61 2067 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 1,188,851
62 2068 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 1,236,405
63 2069 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 1,285,861
64 2070 9,577.68 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 167,286 1,337,296
65 2071 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,354,188
66 2072 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,408,355
67 2073 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,464,690
68 2074 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,523,277
69 2075 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,584,208
70 2076 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,647,577

PAGE 2
 TAB A

Pet. Ethan Reilly
D.O.B. 12/15/2006

DATE: 10/25/17
TIME: 10:01 AM

SUMMARY OF LIFE CARE ITEMS - JOINT LIFE CARE PLAN dated October 25, 2017

ITEM OF CARE Insurance Medical Ancilliary Medications Supplies Home Transportation Home TOTALS TOTALS OF
Care Services Services Modifications of Items 4.0% ITEMS
with a 4.0% & APPLYING
Growth Rate THE GROWTH
GROWTH RATE 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% RATE

AGE YEAR

71 2077 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,713,480
72 2078 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,782,019
73 2079 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,853,300
74 2080 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 1,927,432
75 2081 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,004,529
76 2082 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,084,710
77 2083 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,168,099
78 2084 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,254,822
79 2085 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,345,015
80 2086 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,438,816
81 2087 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,536,369
82 2088 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,637,823
83 2089 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,743,336
84 2090 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,853,070
85 2091 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 2,967,193
86 2092 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 3,085,880
87 2093 5,175.44 424.40 7,170.00 2,794.01 3,200.38 144,000.00 119.84 0.00 162,884 3,209,315

608,132 26,313 1,170,146 229,277 253,171 11,013,120 40,562 100,000 13,440,721 81,065,682

4.52% 0.20% 8.71% 1.71% 1.88% 81.94% 0.30% 0.74% 100.00%

This Report was generated using Sequoia Settlement Services, LLC Software (c) 1990

PAGE 3