I can see missing a teeny bit of it, but how could someone miss an entire towel in a wad the size of a baseball?

I'm assuming it was not of bath towel size.

Also it's more common for compensation to be arranged through mediation - very rare for someone to actually sue another person or company.

Dude. Seriously? I would be VERY pissed if some dumbass surgeon left a towel INSIDE OF ME.

I hope they give him lots of money. I've always sort of wished something annoying, evil and ultimately benign would happen to me so I'd get lots of money. Like, nothing that would cause me permanent harm, though I'd have to experience enough suffering to warrant a good settlement of several mil. But, you know. Maybe it wouldn't be worth the pain and suffering.