Jury Awards $130 Million to Minnesota Dentists
Thursday, June 4th, 2009 | Breach of Contract, Tortious Interference
A Hennepin County jury has awarded PDG P.A. (“PDG”), a Twin Cities dental group, more than $130 million in damages for multiple claims, including breach of contract and tortious interference. The verdict stems from a dispute over a 1996 service agreement where PDG agreed to pay PDHC Ltd. (“PDHC”) certain fees in exchange for non-dental administrative services. In 2006, PDG filed a complaint against PDHC, alleging that the company wrongfully engaged in conduct constituting the practice of dentistry in violation of Minnesota law and the parties’ service agreement. PDG also alleged that after it terminated its contract with PDHC, the company tortiously interfered with its ability to transition patients to new clinics by refusing to provide copies of patient records and recruiting PDG dentists for a new venture in direct competition with PDG. PDHC denied all allegations. After a month-long trial, the jury found for the plaintiffs and concluded that PDHC was liable among other things, for breach of contract, breach of fiduciary duty, and tortious interference. Finding that PDHC acted with deliberate disregard when it tortiously interfered with PDG’s prospective economic advantage, the jury awarded PDG $42 million in punitive damages. This verdict is significant because it reminds companies that there is no tolerance for the interference of plaintiff’s existing and prospective contractual relationships. For information on The Employment Law Group® law firm’s practice go to http://www.employmentlawgroup.net/PracticeAreas/EmploymentContractDisputes.asp.