Adena Health awarded sanctions from Cohen, former doctors

Editor's Note: A previous version of this article ran online only this week. It was removed as it did not meet the Gazette's standards of accuracy. The following is a corrected version of that article, which makes clear that Adena was only awarded sanctions in a recent court action and the lawsuit between the parties is still active.

CHILLICOTHE ― Adena Health System was awarded sanctions against three former Adena Bone & Joint doctors during an ongoing legal battle.

In 2021, Adena Health System filed a lawsuit against former Adena doctors Brian Cohen, Aaron Roberts and James Troy Thompson for allegedly breaching contracts and duty, damaging business relationships, sharing trade secrets and engaging in civil conspiracy. Adena alleged that the doctors began organizing a group of physicians to leave the health system while they were paid employees.

Later that year, the legal team representing the three doctors filed a motion to dismiss the civil suit against them and issued a countersuit. The countersuit asserted that the health system allegedly breached employment agreements, wrongfully terminated them, issued retaliation, violated antitrust laws and engaged in slander.

On Dec. 1, 2022, Adena filed a motion seeking an award from the defendants, the former Adena Bone & Joint Center doctors, "Pursuant to Ohio Revised Code Section 2323.51 of court costs, reasonable attorney fees, and other reasonable expenses incurred with respect to defendants' frivolous conduct in the filing and pursuit of federal antitrust and malicious prosecution counterclaims wholly unwarranted in law."

Antitrust and malicious prosecution claims

According to court records, Adena argued that a federal antitrust action can only be brought to federal court. The former doctors argued that "because they were asserting their federal antitrust claim as a counterclaim, not as a claim in the main complaint of this action, that this court has jurisdiction."

According to court documents, Adena sent a letter on Dec. 6, 2022, to warn the doctors that their antitrust and malicious prosecution claims were, "wholly unwarranted and frivolous." Adena argued since the doctors continued to pursue the claims after receiving the letter, awarding fees and expenses is appropriate.

The doctors argue that their antitrust counterclaim was a necessary and procedural step due to Civil Rule 13, which requires that, "A party assert any claim that the pleaser has against any opposing party." The doctors stated that failure to follow the rule risks waiver of the claim.

In reference to the malicious prosecution claim, Adena argued that the prosecution of the predicate civil proceeding must have been terminated in favor of the plaintiff bringing the claim forward. Adena argued that the doctors knew this fact, which further proves its frivolous claim.

The doctors maintain that their conduct was not frivolous and did not adversely affect Adena. According to court documents, the "doctors' attorneys state that the doctors have no legal training and could not evaluate whether an antitrust counterclaim should have been filed in state or federal court."

The court decided that the antitrust claim must be brought in federal court and the defendants were under no obligation to plead the counterclaims it had.

According to a statement emailed to the Gazette from the doctors' attorney, Jennifer Battle, "The Court dismissed the doctors' antitrust claim because it believed the claim should be filed in federal court instead- not because it lacked merit. Accordingly, the doctors have re-filed their antitrust claim against Adena in federal court."

Battle also addressed the malicious prosecution claim, "The court dismissed the malicious prosecution claim as premature, but allowed the doctors to refile it at the end of the case, which they plan to do when they win Adena's lawsuit. No court has ever determined that either of these claims lacked merit."

Adena declined to provide further comment.

Adena Health awarded sanctions

The court found the challenged conduct to be frivolous and adversely affecting the moving party, awarding Adena with court costs, reasonable attorney fees and other expenses.

"While the court does not and cannot know what was in the doctors' hearts, it can objectively look at their actions," the court record states. "This court sees the doctors' actions as inconsistent with their assertion that they acted in good faith as to an extension, modification or reversal of existing law."

Adena submitted documentation of legal fees, including counsel and expert witness rates ranging from $560 to $1,200 per hour. Adena was seeking more than $300,000 from the defendants. Adena said, "The amounts requested did not reflect the full adverse impact on Adena."

The doctors argued that the court should consider if the rates of Adena's lawyers were reasonable, arguing that the doctor's antitrust expert works at a rate about half as much as Adena's expert. Attorney Jeffrey Ireland testified as an expert on behalf of Adena and said their attorney fees were reasonable.

Ultimately, the court determined that some items on the billing sheet did not adversely affect Adena.

The court decided not to award Adena with any fees for discovery work relating to the antitrust claim. The court also did not award billing items that did not include enough information to attribute to the antitrust or malicious prosecution claims or any work completed by Berkley Research Group, a group that includes expert witnesses primarily from Washington, D.C., and New York that charges between $900 to $1,200 per hour.

The court awarded Adena $87,329.25 in attorney and paralegal fees to be paid by the defendants. Court records state that the thought of giving Adena the full amount requested would "shock the court's conscience."

According to a statement from Battle, "The doctors believe the award of any fees or expenses to Adena was inappropriate, and intend to appeal the ruling."

Adena’s lawsuit for the pursuit of damages based on the departure of those physicians continues.

Megan Becker is a reporter for the Chillicothe Gazette. Call her at 740-349-1106, email her at mbecker@gannett.com or follow her on Twitter @BeckerReporting.

This article originally appeared on Chillicothe Gazette: Adena Health awarded sanctions from Brian Cohen, former doctors