Facts

Plaintiffs Dr. Saied Ibrahim Saied and Dr. Nagy Bebawy were both doctors employed by defendant Centro Medico Community Clinic. In 2002, Dr. Bebawy, Dr. Saied, and defendant Phaniel Rigaud reopened the existing Centro Medico Community Clinic as a nonprofit corporation, with Dr. Bebawy to serve as Medical Director and Rigaud to serve as Chief Executive Officer. Defendant Celeste Veney was named Director of Operations in 2004.

In obtaining tax-exempt status as a Federally Qualified Health Center, the clinic was required to treat all patients, including those who could not pay for treatment. Additionally, as Medical Director, Dr. Bebawy reported to the Board of Directors and was responsible for hiring all medical staff.

PLAINTIFFS' CONTENTIONS:
In 2007, Dr. Bebawy filed a lawsuit against Rigaud and the clinic for fraud, interference with prospective relations, Lanham Act violations and declaratory relief. Over the course of several years, Rigaud and Veney had taken total control over the clinic, preventing Dr. Bebawy from interviewing or hiring medical personnel, excluding him from Board of Directors meetings and wrongfully barring him from having any financial oversight or control. The lawsuit was settled on the condition that the defendants correct the problems that were the basis of the complaint, but Dr. Bebawy filed another suit in 2011 for breach of this settlement agreement, as Rigaud and Veney were continuing to operate and manage the clinic without oversight from any other licensed medical doctor. As a result, Riguad cut Dr. Bebaway's salary and subsequently terminated him.

On Sept. 27, 2012, Dr. Saied filed a lawsuit against Rigaud, Veney and the clinic, and reported to the California Medical Board. The clinic was turning away patients due to their inability to pay for medical services, repeatedly overcharging patients by ordering medically unnecessary tests, charging extra for certain necessary services such as blood tests, and adding administrative fees. In response to these actions, in early 2013, Rigaud cut Dr. Saied's hours in half and began paying him only half his prior salary. In Sept. 2013, Dr. Saied was fired in retaliation for reporting the clinic's illegal activities and refusing to drop the complaint.

Plaintiffs contended that they were wrongfully terminated for protesting the illegal practices that were occurring at the clinic, for filing lawsuits against the clinic and its CEO and manager, and reporting the violations to the Medical Board and the Inland Empire Health Plan. 

DEFENDANTS' CONTENTIONS:
Defendant contended that the plaintiffs were not wrongfully terminated, that they were "at will" employees and could be fired without cause.

Settlement Discussions

Dr. Saied demanded $240,000 to settle, and Dr. Bebawy demanded $480,000 to settle. Defendant offered $60,000 to settle with both plaintiffs.

Result

Plaintiffs were awarded a total of $6,169,140. The jury found that Dr. Saied suffered economic losses of $2,176,259 and emotional distress damages of $517,422.00. The jury also found that Dr. Bebawy suffered economic losses of $1,939,459 and emotional distress damages of $1,536,000.

Other Information

After the first phase of a bifurcated trial on the unfair business practices claims against the clinic, Rigaud and Veney, the court appointed a Receiver for the clinic, which resulted in judicial supervision of the clinic that brought about vast improvements to its services. The clinic is now fulfilling its mission as a nonprofit to treat patients regardless of their ability to pay, according to plaintiffs. FILING DATE: Sept. 27, 2012.

Deliberation

3.5 hours

Length

four days