Desert Hospital Corporation v. Mark A. Smith, M.D. and Erwin C. Demiany, M.D.
Published: Mar. 16, 1996 | Result Date: Oct. 16, 1995 | Filing Date: Jan. 1, 1900 |Case number: 65391 – $13,450,000
Judge
Court
Riverside Superior Indio
Attorneys
Plaintiff
Scott D. Bertzyk
(Greenberg Traurig)
Robert M. Gilchrest
(Gilchrest Law Group)
Frederick L. McKnight
(Jones Day)
Defendant
Richard J. Decker
(Prospera Law LLP)
Experts
Plaintiff
David E. Nolte
(technical)
Facts
The plaintiff, Desert Hospital Corporation, is a Palm Springs hospital. The defendants, Mark A. Smith, M.D. and Erwin C. Demiany, M.D., were former fiduciaries of the hospital who served on the hospital's board of directors and/or various board committees. As fiduciaries, the defendants were entrusted with access to the hospital's strategic plans to establish and expand certain medical facilities. Desert Hospital Corporation alleged that from 1987 to 1990, the defendants placed identical facilities across the street in competition with the hospital. The plaintiff brought this action against the defendants based on breach of fiduciary duty, misappropriation of trade secrets and unfair competition theories of recovery.
Settlement Discussions
The plaintiff made a $2,000,000 settlement demand and the defendants offered $125,000.
Damages
The plaintiff claimed compensatory damages (joint and several liability for conspiracy to breach fiduciary duties) against the defendants.
Other Information
The verdict was reached approximately four years after the case was filed.
Deliberation
5 hours
Poll
11-1 (compensatory damages), 12-0 (all other issues)
Length
3+ weeks
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