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News Report Spotlights $10.6 Million Breach of Contract Verdict as Health Care Sector Business Trend

News Report Spotlights $10.6 Million Breach of Contract-Fraud Verdict as Health Care Sector Business Trend

Earlier this month, Texas Lawbook senior legal affairs writer Mark Curriden focused on The Law Offices of Frank L. Branson’s recent $10.6 million complex commercial litigation verdict as part of a larger story about an interesting legal and business trend in the health care sector.

Frank Branson and Eric Stahl led a trial team that successfully represented North Texas neurologist Dr. Erwin Cruz in complex commercial litigation against his former business partners, Mehrdad “Mike” Ghani and Dr. Michael Taba. During two weeks of trial, jurors heard testimony that Mr. Ghani and Dr. Taba worked to deprive Dr. Cruz of his financial interests in two North Texas diagnostic imaging centers. The jury’s verdict included $2.89 million in actual damages and another $7.77 million in exemplary damages, which jurors added after finding that the actions of Mr. Ghani and Dr. Taba were malicious, grossly negligent or fraudulent.

Writes Curriden in an article appearing in The Dallas Morning News:

The jury’s verdict is attracting attention in the legal and medical communities because it could signal how juries could decide scores of similar lawsuits pending across Texas.

Legal experts say that during the past 15 years, physicians who wanted more profit from their practices created several hundred specialized medical centers in Texas. Groups of specialists in fields such as cardiology, neurology, radiology and urology joined together to create highly profitable treatment clinics that offer day surgeries, medical testing and other medical services offered at hospitals.

But now, business disputes over profit sharing, management decisions, contractual agreements, investment costs and retirement plans are developing in those partnerships. As a result, doctors are increasingly suing each and their own management teams.

Read the full article here (subscription required).