Tuesday, May 21, 2013

Judge feels sorry for hospital that hired thugs to silence doctor, sets aside jury verdict punishing hospital

Larry Anderson is now CEO of Tri-City Medical Center in Oceanside, California.

"The doctor in question, Michael Fitzgibbons, alleged IHHI's former CEO, Bruce Mogel, hired a thug with alleged ties to the Santa Ana police to, among other things, frame him on a false gun brandishing charge. The jury returned a verdict of $5.7 million for Dr. Fitzgibbons."

The Nightmarish Saga of Michael Fitzgibbons
The case pitting the whisteblowing doc against Integrated HealthCare Holdings Inc. appears to be over
OC Weekly News
Feb 21 2013

On June 28, 2006, Santa Ana police arrested Dr. Michael Fitzgibbons, an infectious-diseases specialist at Western Medical Center in Santa Ana, for allegedly waving a gun in traffic after they found a pistol and a pair of black gloves in his car. There are still many questions surrounding the incident: Who were the mystery callers who dialed 911, reporting the suspect was a man in a white medical coat driving a brown Toyota Camry? How were police able to find the vehicle so quickly in the hospital's parking lot several blocks away? Why would a soft-spoken doctor who'd just won a whistleblowing lawsuit celebrate by pointing a gun at strangers in traffic?

These questions may never be answered. But according to a jury trial that just ended at the Orange County Superior Courthouse in Santa Ana, there's one fact upon which everyone agrees: The alleged road-rage incident in question never happened. Instead, somebody planted the gun and gloves in Fitzgibbons' car. On Feb. 13, a jury went a step further, agreeing with Fitzgibbons' claim that he'd been framed by his employer in retaliation for an email he sent to colleagues questioning the company's financial outlook. The jury awarded him a whopping $5.7 million in damages.

In his successful lawsuit against the company, Integrated HealthCare Holdings Inc. (IHHI), Fitzgibbons had sought more than $46.8 million, arguing that his arrest at the hospital—and a series of subsequent strange events that nearly killed a family member—nearly destroyed his medical practice and left him permanently scarred with post-traumatic stress disorder. Lawyers for IHHI tried to convince jurors that Fitzgibbons had somehow set himself up in a bizarre ploy to appear as an unstable martyr, a strategy the jury took less than a day to reject.

This surreal saga began in 2005, a year after IHHI took over the cash-strapped Western Med and three other Orange County hospitals from the scandal-plagued Tenet Corp. As chief of the hospital's medical staff, Fitzgibbons was concerned that patient care might suffer under IHHI because the company just defaulted on a $50 million loan; in May of that year, he sent a pointed email to colleagues raising that concern. When IHHI officials got wind of this, they promptly sued him for slander and interfering with business practices. Fitzgibbons countersued, arguing that IHHI's lawsuit violated his free speech; a judge agreed with the doctor and tossed out the company's suit in June 2006.

Two weeks after the [dafamation case] decision, Santa Ana police arrested Fitzgibbons for the alleged gun-waving, but he was released after the department impounded his car and fingerprinted and strip-searched him at the police station. Because prosecutors had no eyewitnesses, his fingerprints weren't on the gun and DNA taken from the gloves failed to show a match, the doctor was never charged with a crime. But when he went to pick up his car at the impound lot on July 5, he quickly saw something that hadn't been in the vehicle when the police had found the gun—a plastic sack full of pills, each one stamped with the Playboy-bunny logo. Figuring someone was hoping to frame him yet again, Fitzgibbons immediately handed the bag over to his attorney, who flushed the pills down the toilet.

His troubles weren't over yet. On July 16, his daughter's car flipped on the 22 freeway. Miraculously, neither she nor her two passengers was injured, but as Fitzgibbons pulled out of his driveway, he realized one of his tires was flat. Although authorities ruled the crash an accident, Fitzgibbons was suspicious enough to hire a private crash investigator, who found a two-inch slash in one of the tires (see "Car Trouble," Aug. 4, 2006). Irvine police refused to investigate his claims, however, and Fitzgibbons tried to move on with his life.

Yet controversy and lawsuits continued to circulate around IHHI. The company's main lender, Medical Capital Holdings, turned out to be a Ponzi scheme whose investors lost hundreds of millions of dollars, while the lender's executives used the cash to finance lavish parties and even purchase a multimillion-dollar private yacht. In yet another bizarre twist, IHHI chief executive officer Bruce Mogel personally pressured the lender to obtain a $5 million loan for an Internet-porn advertising firm, E-Mark, that appeared to be a phony company (see "New Complications In the IHHI Saga," July 30, 2009).

One of the lawsuits swirling around IHHI led to an under-oath deposition of Larry B. Anderson, IHHI's vice president, which provided the first clue about the mysterious road-rage incident involving Fitzgibbons. According to Anderson, shortly after Fitzgibbons won his lawsuit against IHHI, Mogel told him that the doctor needed to be "humbled." Mogel, Anderson added, then proceeded to brag that he had a friend named Mikey Delgado, a weight-lifting thug who had Santa Ana cops on his payroll and could cause trouble for Fitzgibbons or any other doctor who interfered with the company.

Mogel instructed Anderson to issue a $10,000 check to Delgado's webpage-design company, Form Labs, which never did any work for IHHI, whose own investigators later determined it to be a front company with nothing to show for itself but a post-office-box address in Scottsdale, Arizona, where Mogel lives. After he cut the check and Fitzgibbons was arrested, Anderson suspected the mysterious Delgado had planted the gun in the doctor's car. Those suspicions were confirmed, he adds, when Mogel appeared to relish in Fitzgibbons' plight, even remarking, "People don't know how powerful I am."

Court Reverses Run-Away Multi-Million Dollar Jury Verdict
An Orange County judge has reversed the jury verdict that found Integrated Healthcare Holdings, Inc liable for intentionally inflicting emotional distress on a doctor.
by Enterprise Counsel Group, lawyers for IHHI
May 10, 2013

In February, it was widely reported an Orange County jury found a hospital chain, Integrated Healthcare Holdings, Inc. (IHHI), liable for intentionally inflicting emotional distress on a doctor. (Campbell, Orange County Register, 2/13; Campbell, Orange County Register, 2/8). The doctor in question, Michael Fitzgibbons, alleged IHHI's former CEO, Bruce Mogel, hired a thug with alleged ties to the Santa Ana police to, among other things, frame him on a false gun brandishing charge. The jury returned a verdict of $5.7 million for Dr. Fitzgibbons.

Yesterday, Judge Gregory H. Lewis of the Orange County Superior Court set aside the jury's verdict in its entirety. In doing so, the Court granted judgment for IHHI. The judgment states, "Plaintiff Dr. Fitzgibbons will take nothing from Defendant IHHI" and "Defendant IHHI [will] recover from Dr. Fitzgibbons its cost of suit."

Judge Lewis explained, "after full consideration of the evidence presented at trial, the court determined the jury's verdict was not supported by substantial evidence." Judge Lewis also determined "it is more probable than not" the jury engaged in misconduct prejudicial to IHHI. Finally, Judge Lewis found the jury's verdict appeared "to be a product of passion and prejudice instead of an evaluation of the extent of [Dr. Fitzgibbons'] emotional distress."

"Needless to say, this is a huge relief for a company dedicated to putting its money toward the best possible patient care, not paying millions of dollars to a single doctor who hired a contingency lawyer to complain he was distressed, even though the doctor in question admittedly never missed a single day of work or presented evidence of the slightest economic loss," says David A. Robinson, IHHI's lead trial attorney. Per Robinson: "As noted in the Court's order, 'at worst' Dr. Fitzgibbons claimed 'some other doctors poked fun at him.' That is hardly 'severe' emotional distress justifying taking money from patient care to make a single doctor and his lawyer rich."

One reason the Court found the jury's verdict was not supported by substantial evidence is the Court rejected Dr. Fitzgibbons' claim that IHHI ratified its former CEO's alleged conduct. Per Robinson: "The evidence showed Dr. Fitzgibbons' entire case rested on the testimony of one man, Larry Anderson. Anderson admitted his conjecture that his former boss, Mogel, might have hired a thug was 'without meat' and 'without substance.' Indeed, this is why Anderson claimed he kept this story a complete secret from everyone else at IHHI while Anderson worked there. Anderson never got around to telling anyone about this admitted speculation until almost two and a half years later, and then under suspicious circumstances. How could IHHI have ratified conduct that Anderson admittedly first concealed, then later claimed was only speculation?"

Enterprise Counsel Group, A Law Corporation (ECG) is a business law firm specializing in trial, appellate, transactional, labor and real estate matters...

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