IMHO, lawsuits are for punishing people and organizations for things that they do knowingly or recklessly. If baby bodies were regularly being sent to the cleaners, there would be a reason for the hospital to pay. If someone who works for the hospital did this to cause the parents mental pain, the hospital needs to pay.
The Plaintiffs in this case are apparently looking for astronomical amounts, or the hospital's insurance company's lawyers would have settled this by now. They are looking to never work in their life because of a very unfortunate incident.
No, that is incorrect. Let me give you an example that might show you your error in thinking.
Let's say that a person driving a car that malfunctions runs into you, damaging to your vehicle, severely injuring you, as well as killing your children.
Their insurance company offers to repair your car, and pay some of your medical expenses (you had pre-existing conditions that exacerbated your recovery, so they won't pay everything), but that's it. The auto maker's insurance company laughs at you.
Do you sue them, or let it drop? Remember, you haven't yet proven that anyone did anything knowingly or recklessly.
Still think your definition of the reasons for filing lawsuits is correct?
BTW, lawsuits are not for punishing anyone. They are for recovering damages from those who refuse to allow recovery of those damages. Some damages cannot be recovered (the lives of your children, the pain and suffering from your injuries) and so the court system attempts to quantify them in financial terms, so you receive money instead of the unrecoverable.