CSX loses $22.8M suit in Greenup
Sep. 26—A trial in Greenup County Circuit Court resulted in $22.8 million being awarded from CSX to two area chiropractors on Thursday.
Plaintiffs Drs. Daniel Carey and Shannon Johnson — chiropractors in Proctorville, Ohio, and Greenup, respectively — accused CSX's Chief Medical Officer Craig Heligman of defaming them and interfering with contracts.
According to court records, CSX had written letters to the federal government, insurers and state chiropractic boards that accused Carey and Johnson of conspiring with their railroad employee patients to falsify medical records for the purpose of fraudulently obtaining health benefits.
Dr. Carey and Dr. Johnson issued more than 60 nearly identical Certification of Ongoing Illness or Injury (COII) forms during a three-month period when a furlough announcement and work force reorganization was ongoing at CSX Transportation, Inc., according to the defendants' pretrial memorandum in court records. CSX claimed it received a "drastic and unprecedented increase in COII forms from the plaintiffs and their practices for numerous CSXT employees claiming that they could not work because of medical conditions."
The chiropractors argued the letters reflected false information. They also said Heligman didn't examine employees in question or review their medical records — or talk to the doctors themselves.
The jury ruled in favor of the plaintiffs on defamation and tortious interference.
Johnson is to receive $805,000 in compensatory damages. Carey was awarded $610,000.
Each plaintiff is to get $10.7 million in punitives, so the combined verdict amounted to $22,815,000.
Attorneys Jeff Dingwall, Greg Paul and Ken Reed represented Johnson and Carey. Melissa Bird, Shaina Massie, Samuel L. Tarry and Davis M. Walsh represented CSX.
Judge John Vincent tried the case.
The lawsuit was originally filed in 2018.
