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CONFIDENTIAL

Jun. 27, 1998

Employment Law
Wrongful Termination
Defamation

Confidential

Settlement –  $2,500,000

Judge

Charles R. Hayes

Court

San Diego Superior


Attorneys

Plaintiff

Sherry S. Bahrambeygui

Brian D. Monaghan


Defendant

David J. Noonan
(Noonan, Lance, Boyer & Banach LLP)

Douglas R. Reynolds

Michael I. Neil
(Neil, Dymott, Frank, McCabe & Hudson)


Experts

Plaintiff

Roberta J. Spoon
(technical)

William Matthew Byrne Jr.
(medical)

Defendant

Dorsey Bass
(medical)

Cary P. Mack
(technical)

Facts

The plaintiff, a 58-year-old double board certified pediatric gastroenterologist, worked for defendant medical group for 12 years. Defendant provides over 80% of the physician staffing at a hospital in Kearny Mesa. He was fired from the medical group in July 1995. The plaintiff still practices medicine locally and has privileges at the hospital. The plaintiff brought this action against the medical group and the president of the medical corporation based on wrongful termination and defamation theories of recovery. The hospital was initially named as a defendant, but dismissed before the case went to the jury based on insufficient evidence.

Settlement Discussions

In July 1997, the plaintiff demanded $980,000. In November 1997, the plaintiff made a C.C.P. º998 demand of $1.15 million. Immediately pre-trial, the plaintiff made a demand of $1.35 million ($1.9 million, per the defense), following expiration of the C.C.P. º998. Pre-trial, the defendants made a tentative offer of $450,000.

Specials in Evidence

$900,000 to $1.8 million $_________

Other Information

The settlement was reached approximately two years and four months after the case was filed. A three-month trial commenced with the jury rendering a verdict, after 10 days of deliberations, in favor of the plaintiff for $1.75 million ($1.1 million against medical group; $650,000 against defendant doctor). Per the defense, the court rejected, for insufficient evidence, the plaintiff's $1.1 million claim of damage to his practice due to the group allegedly having provided his patients or prospective patients incorrect information about his new practice after his termination. The jury determined that defendants acted with malice or oppression and that they violated a state law protecting doctors from retaliation for advocating appropriate treatment. The punitive phase was scheduled to be heard on April 29, 1998. However, the entire case against all defendants settled for the reported amount two days before the trial on punitive damages.

Deliberation

10 days

Poll

10-2 (wrongful termination), 11-1 (defamation)

Length

three months


#91140

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