$1.4 million settlement

$1.4 million settlement

January 1, 1994

$1.4 million settlement in Breach of Contract case

Breach of Contract and Economic Injury

Type of Action: Breach of contract.

Type of Injuries: Nonpayment of bonuses from 1990 through the end of the term of the contracts, 1996.

Name of Case: O’Desky, et al. v. Michigan Health Care Corporation, et al.

Court/Case No.: Wayne County Circuit Court, Nos. 93-321064-CK, 93-333360-CK, 91-128793-CK.

Name of Judge: Hon. Denise Page Hood.

Jury Demand?: No.

Damages Awarded/No Cause of Action: Michigan Health Care Corporation to pay damages for breach of contract to Drs. Smapson, O’Desky, Popoff, Swarin and Lofman in the amount of $1,421,653, plus declaratory relief for future bonuses. Additionally, the doctors are entitled to receive statutory interest, taxable costs and Dr. Popoff will likely receive reasonable attorney fees for mediation sanctions. The court also ordered MHCC to pay reasonable expert witness fees for Jeffrey Johnston, a CPA with Conway, MacKenzie and Dunleavy, who provided a damage analysis for plaintiffs.

Trial Verdict or Settlement: Trial verdict.

Attorney for Plaintiff: E. Powell Miller, Mel R. Partovich, Michael Curhan, Michelle Vocht, Lynn Schecter.

Name/City of Your Experts: Jeffrey L. Johnston, CPA, Birmingham, MI.

Highest Offer: $100,000.

Other Useful Information: Judge Hood awarded $1,421,653, plus declaratory relief for payment of bonuses in the future, under circumstances where the highest settlement offer from Michigan Health Care Corporation was $100,000.

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