The $66 million product liability suit against Cybex International was upheld last week, but the court reduced the award to about $44 million. Cybex, Medway, MA, says it will appeal the decision to the Court of Appeals of the State of New York.

In December 2010, a jury in the Barnhard v. Cybex International case found Cybex negligent in a case in which Natalie Barnhard was left a paraplegic after a piece of Cybex equipment that she was stretching on fell on top of her. The jury granted her $66 million, of which Cybex was deemed 75 percent liable. Cybex appealed the decision, which was heard by the Appellate Division, Fourth Judicial Department, of the Supreme Court of the State of New York. Last week, that court upheld the original decision, but it did reduce the award amount by about $22 million.

The court panel reduced the award for past pain and suffering from $8 million to $3 million; future pain and suffering from $25 million to $9 million; and eliminated a $792,435 award for care of potential children. The award of $28.56 million for future medical expenses, $1.68 million for past medical expenses, $151,690 in past lost earnings and $1.79 million for future lost earnings were left intact.

“Cybex strongly believes that it was not at fault in the accident that is the basis of the plaintiff’s claims and that this case was wrongly decided as to liability,” John Aglialoro, chairman and CEO of Cybex, said in a statement. “In addition, while the company appreciates the decision of the court to reduce the judgment, we believe that the amount of damages represented by the reduced judgment continues to be overstated.”

Under New York law, Cybex is responsible for payment of the judgment but will seek reimbursement from the co-defendant, Amherst Orthopedic Physical Therapy PC, Buffalo, NY, of approximately 21 percent. Barnhard was employed by Amherst, which is also where the accident occurred. With reimbursement from Amherst and after insurance (of which Cybex has $4 million in coverage), Cybex would have a net liability of about $33 million. Cybex also must pay interest at the annual rate of 9 percent, which accrues on the modified judgment from the judgment date, according to the company.

Within 60 days of filing the appeal, Cybex expects a decision by the Court of Appeals on whether it will consider the case. If accepted, Cybex anticipates a ruling in 2012.

“The company is also exploring both ways to protect itself in the event the Court of Appeals does not accept the appeal for consideration and available alternatives to fund an ultimate resolution of the matter,” the company said in a statement released today.

Cybex is analyzing how the decision will affect the company’s fourth quarter and full year results. It will hold a conference call tomorrow at 4:30 p.m. ET to provide a business update on the matter.

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