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.
Listen, I never said that the parents were not entitled to compensation from the hospital for their mental anguish. What the hospital did was wrong and it caused emotional pain.
I believe that these parents have probably been offered a settlement or two from the hospital. Insurance companies like to make this stuff go away shy of a lawsuit being filed. In my opinion, and my opinion only, these people are looking for a lottery payday from this case. That is what this country is all about these days.
A sincere apology and payment for actual damages is a thing of the distant past.