CSCQ Correctional Services (MM)

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

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