A Federal Tort Claims Act medical malpractice case involving a birth injury at Blanchfield Army Community Hospital at Fort Campbell has resolved through an $11 million settlement with the U.S. Department of Justice, according to a filing in the U.S. District Court for the Middle District of Tennessee. The action, brought by Sarah Panter and Joshua Madrid individually and on behalf of their daughter, followed an April 2026 trial against the United States, with settlement reached while the parties awaited a judicial decision. The child, now four years old, is described as having permanent and severe neurologic impairments and a lifelong need for continuous skilled nursing care.
Medical Malpractice Allegations Arising From Labor and Delivery
Court filings identify the case as Madrid, et al. v. United States of America, No. 3:24-cv-01060, filed in August 2024 under the FTCA. Joshua Madrid was an active-duty Army Specialist stationed at Fort Campbell when the baby was delivered at the base hospital on September 11, 2021. The claim centers on alleged negligence during labor and delivery, with the family asserting that government providers did not respond appropriately to fetal distress over an extended period.
The complaint alleges that clinicians at Blanchfield Army Community Hospital should have proceeded to a cesarean section within 30 minutes, but that more than three hours elapsed before the baby was delivered vaginally. The delivery time is identified as 10:36 a.m. in the lawsuit. The allegations also reference testing that the family contends showed the baby was healthy prior to delivery, and the reporting attributes responsibility in the care to two nurse midwives and one obstetrician involved in the case.
Litigation Path Under the Federal Tort Claims Act and Trial Proceedings
Before suit was filed, the family pursued an administrative claim with the U.S. Army in 2023, reflecting the FTCA’s requirement that claimants present allegations to the agency before initiating litigation. After that process, the civil case proceeded in federal court in Nashville. The settlement disclosure was made through a filing in the Middle District of Tennessee, framing the resolution as one reached after a trial rather than at an early pretrial stage.
The matter was tried in April 2026 by partners Laurie Higginbotham and Tom Jacob of National Trial Law. The settlement was reached after a full trial on the merits, with the Department of Justice agreeing to resolve the case while the parties awaited the judge’s decision. According to statements attributed to counsel, the case required multiple procedural steps, including the administrative claim, the lawsuit, trial proceedings, and approval by the Associate Attorney General before the resolution was finalized.
Settlement Amount and Ongoing Medical and Care Needs
The settlement amount disclosed is $11 million. The family’s filings and related reporting describe the child’s condition as permanent and catastrophic, with diagnoses including severe hypoxic ischemic encephalopathy, spastic quadriplegic cerebral palsy, intractable epilepsy, and cortical visual impairment. The child is described as unable to walk or sit unsupported and as receiving nutrition through a feeding tube, underscoring the extent of functional limitations alleged to have resulted from the delivery-related injury.
A life care plan referenced in the case calls for licensed practical nurse-level care 24 hours a day for the remainder of the child’s life. Counsel indicated that while monetary compensation cannot reverse the harm, the funds are intended to support ongoing medical needs. Beyond the immediate parties, the case illustrates how FTCA birth-injury claims may proceed through agency presentment and trial before resolution, with settlement terms sometimes reached only after the evidentiary record is fully developed in court.
