Correctional Services (NASDAQ:CSCQ)
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Court Upholds $38 Million Judgment Against Correctional Services Corp. in Boot
Camp Case, According to Kobs & Haney
Original Judgment in Wrongful Death Case Will Stand, Court Rules
FORT WORTH, Texas, Dec. 2 /PRNewswire/ -- Visiting State District Judge Roger
Towery has ruled that Sarasota, Fla.-based Correctional Services Corp. must pay
a $38 million judgment that was awarded earlier this summer to the parents of a
young man who died at a Mansfield, Tex., boot camp in 2001.
In August, a jury in Fort Worth's 236th District Court awarded the family of
Bryan Alexander $35 million in actual damages and $5.1 million in punitive
damages following an eight-week trial.
Alexander died from a penicillin-resistant form of pneumonia he contracted while
participating in a six-month boot camp program as a condition of his misdemeanor
probation. Evidence in the case showed that Alexander, who was 18 years old,
died after CSC employees ignored his pleas for medical attention for days.
In September, Judge Towery set the actual damages at $37.4 million, including
interest, and reduced the punitive damages to $750,000. CSC responded by asking
the court to reduce or set aside the entire judgment, arguing that there was "no
legally or factually sufficient evidence to support the jury's findings." CSC
President James Slattery told CSC investors during a recent conference call that
the company expected the court to reduce the $38 million judgment. In his
ruling issued yesterday, the judge denied all of CSC's motions.
"We are pleased that once again the jury's verdict in this case has been
upheld," says attorney Jeff Kobs, a partner in Fort Worth's Kobs & Haney, who
represented the Alexander family along with Fort Worth attorney Bill Lane. "We
are confident that the Courts will continue to deny CSC's repeated attacks on
the jury's decision."
As a result of this ruling, CSC has until Dec. 16, 2003, to file its notice of
appeal, and the company must also post a $25 million bond by Dec. 28, 2003, in
order to prevent the Alexander family from attempting to collect the judgment
amount. Interest has been accruing at a rate of $5,250 per day since the
original judgment was entered in September.
In a related federal court action, CSC's insurance carrier, Northland Insurance
Co., is seeking a declaration that its policies do not cover the $38 million
judgment. CSC is arguing that the Northland policies should cover the judgment
amount, and that Northland acted improperly in failing to settle the claims
prior to the jury's verdict.
For more information on the court's ruling, please contact attorney Jeff Kobs at
817.332.5956, attorney Bill Lane at 817.625.5570, or Bruce Vincent at
214.559.4630 or pager 888.361.8452.
DATASOURCE: Kobs & Haney
CONTACT: Jeff Kobs, +1-817-332-5956, or Bill Lane, +1-817-625-5570, both
of Kobs & Haney; or Bruce Vincent, +1-214-559-4630, or pager, +1-888-361-8452,
for Kobs & Haney