Court Reverses Run-Away Multi-Million Dollar Jury Verdict

IRVINE, CA, 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?"

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