Litigation

Experience

Represent Medical Malpractice Insurer in Bad Faith Claim

In this case, the plaintiff’s estate claimed the medical malpractice carrier had acted in bad faith in handling and settling an underlying malpractice claim against the insured doctor. The plaintiff claimed that doctor ran a “pill mill” and improperly prescribed several narcotic medicines to the decedent who eventually overdosed. During this same time period the defendant doctor was cited by the state medical licensing board and thereafter restricted from prescribing medicines. The defendant doctor defended by claiming that he provided the decedent proper warning and that if taken as prescribed no overdose would have occurred. He retained two experts who were prepared to testify that the doctor complied with the standard of care and/or that his conduct did not cause the overdose. The case ultimately settled for less than the policy limits a little more than a year after it was commenced. The bad faith case followed, with the decedent’s estate claiming that the insurer had acted in bad faith by unduly delaying a claim where liability was reasonably clear and making offers less that the true claim value. After initial written discovery was exchanged, the insurer moved for summary judgment on the bad faith claim on several grounds, including that the doctor had not consented to settlement until the day of settlement and because the doctor’s liability for causing the overdose was not beyond dispute and absent such clear liability, an insurer was entitled to make no offer and proceed to trial without exposing itself to bad faith liability. The court ultimately concluded no additional discovery was needed to address these issues and entered summary judgment. The plaintiff filed a motion to vacate the order under Rule 59 and this, too, was denied. The case is currently pending before the Kentucky Court of Appeals.

Received Summary Judgment in Case Involving Allegations of Age Discrimination

We represented our client, Humana, in a matter involving a former employee, who alleged our client violated the Age Discrimination in Employment Act and Ohio’s nondiscrimination statute under theories of discrimination, retaliation, and disparate impact. We won summary judgment on all of the plaintiff’s claims. After thoroughly reviewing the company’s reduction-in-force procedures which resulted in the plaintiff’s termination, Judge Beckwith agreed the plaintiff could not “establish a prima facie case of age discrimination relative to his termination in the reduction-in-force because he has not provided additional direct, circumstantial, or statistical evidence tending to indicate that he was discharged because of his age.” (Gilster v. Humana Marketpoint, Inc., S.D. Ohio, Case No. 1:14 CV 961, 1/19/16).

Represent Client on Multiple Challenges from Other Company

We represented The Procter & Gamble Company (P&G) in a lawsuit filed by Definitive Solutions Company, Inc. (DSC) in the Hamilton County, Ohio Court of Common Pleas. DSC sued its former employees and their new employer, as well as P&G, when those employees left DSC. DSC asserted claims against P&G for breach of contract, promissory estoppel, tortious interference with business relationships, misappropriation of trade secrets, and civil aiding and abetting. After extensive discovery, P&G moved for, and was granted, summary judgment on each of DSC’s claims.

A bench trial on various claims DSC asserted against the other defendants was held in 2014. The trial court ruled against the former employees and awarded DSC damages. DSC ultimately settled with its former employees, and it appealed the trial court’s decision granting P&G summary judgment on the breach of contract and tortious interference claims.

On appeal, DSC claimed that P&G breached an agreement not to “directly solicit for employment” employees who had worked on its account and also that P&G had tortiously interfered with DSC’s relationship with the employees. The First District Court of Appeals rejected both of DSC’s arguments and affirmed summary judgment for P&G. The Court of Appeals found that the agreement between DSC and P&G prohibited solicitation for employment, not solicitation of another company to perform work. The Court also found nothing in P&G’s conduct that rose to the level of tortious interference.

See Definitive Solutions Co., Inc. v. Sliper, 1st Dist. Hamilton App. No. C-150281, 2016-Ohio-533.

Counsel to Startup Through Growth Into International Distributor of Products

We provide strategic and litigation counsel to our client from startup as a two-person operation through the growth of the company into a market leader with international product distribution via online and brick and mortar outlets. Our counsel has grown from trademarks to a global patent portfolio to tax consequences to importing and exporting matters.

Judgment for client in suit over payment of costs to relocate power lines

We represented Berwind Corporation (Berwind) in a lawsuit instituted by Pennsylvania Electric Company (Penelec) filed in the Court of Common Pleas of Somerset County, Pennsylvania. This declaratory judgment action concerned the interpretation of a right of way agreement (the Agreement) executed in 1977, under which Berwind allowed Penelec to install and maintain a power line and related facilities in a defined right of way over Berwind’s coal-rich land. Starting in 2008, Berwind advised Penelec that Berwind's lessee intended to conduct surface coal mining activities in the right of way, and Penelec's power line could be damaged if it were not relocated. The parties asked the court to interpret the Agreement to determine who had to pay the cost to relocate Penelec's power line. The parties filed cross-motions for summary judgment and the court issued a decision in Berwind’s favor. After oral argument on appeal, the Superior Court of Pennsylvania upheld the decision, ending the case in Berwind’s favor.

Successful defense of client in TRO hearing regarding allegations of fraud and embezzlement

Rick Porotsky led a four-day TRO hearing which vindicated our client, who had been unjustly accused of fraud and embezzlement in his role as manager of a $50 million real estate complex. After an initial ex-parte TRO had removed our client from his managerial role, the court permitted arguments, cross examination, and expert testimony. Mr. Porotsky played the lead role in developing and presenting the case, working closely with forensic accounting experts to address detailed accounting issues. Mr. Porotsky’s presentation and examinations in court led the court to reverse its initial conclusions, finding that the opponent acted without foundation, in an appalling fashion, and with sinister motives when it accused our client of wrongdoing. The client was fully re-instated in his role as manager, and a new TRO prevented the opponent from acting to remove him while the case proceeded, now with counterclaims by our client. Ultimately, the parties reached a resolution to dismiss the matter with our client retaining his role as manager

Cyber Security Defense Verdict In FTC Administrative Action

Successfully defended LabMD at trial before the FTC Chief Administrative Law Judge. LabMD is the medical laboratory whose data security policies, practices and procedures allegedly violated section 5 of the FTC Act. After a lengthy trial the Administrative Law Judge dismissed the complaint. This is a landmark case because it is the first instance in which the FTC has prosecuted a HIPAA “Covered Entity” for violation of consumer privacy without being joined by HHS. It is also the first instance in which the FTC has been forced to take a case to trial involving data security and privacy. Thus this case established the adjudicatory framework for FTC cyber security administrative trials including the standard of proof and elements required to prove section 5 consumer harm in a cyber security case.

Labor & Employment – NLRA

Michael Hawkins served as lead counsel for the respondent before the United States Supreme Court in a National Labor Relations Act (NLRA) dispute between the NLRB and a residential care facility. Mr. Hawkins briefed and argued the case before the Supreme Court, successfully arguing that the NLRB had applied the incorrect test to determine whether registered nurses working at the facility were “supervisors.”

Patent Law – Alleged Infringement

John Luken served as lead appellate counsel to the appellees in a patent dispute concerning alleged infringement of two patents of directed beverage can ends and the methods of joining them to can bodies. Mr. Luken briefed and argued the case in the Federal Circuit, obtaining affirmance of a favorable ruling from the trial court.

Ohio Willow Wood v. Alps South

John Luken served as lead appellate counsel for The Ohio Willow Wood Company (OWW), a manufacturer of prosthetic products, which came to Dinsmore after it had lost an infringement trial against a competitor, been enjoined from selling new products, held in contempt of the injunction, and ordered to pay nearly $20 million in damages to its chief competitor.

On behalf of OWW, Mr. Luken and the Dinsmore appellate team successfully obtained a stay of the contempt order from the Federal Circuit, which allowed OWW to begin selling its products again. After briefing and argument, the Federal Circuit reversed the lower court’s judgment and dismissed the complaint for lack of standing, thereby overturning the judgment against OWW. Mr. Luken also successfully opposed a petition for rehearing and rehearing en banc.

Class Action Lawsuit

Obtained beneficial settlement of shareholder class action lawsuit by City of Pontiac General Employees' Retirement System seeking to preclude the sale of assets in multi-million dollar transaction. In a related matter, successfully defended against a motion for preliminary injunction where management company sought to delay termination of a management agreement in light of the pending sale of assets. 
 

Unique defense of medical monitoring case leads to case dismissal

Our railroad client was sued in state court under the Federal Employers Liability Act (FELA) for medical-monitoring damages in a supposed class action case brought for all present and past employees who were exposed negligently to deleterious airborne substances at work but who had not yet developed any disease. Railroad employees are compensated for work-related injuries under the FELA instead of state workers’ compensation systems. A FELA case is treated like any other civil lawsuit, with extensive discovery and trial to a jury.

Although the federal removal statute specifically says that FELA cases cannot be removed from state court to federal court, we filed a petition for removal anyway, on the grounds that the case could not be a FELA case since an essential element of a FELA case is “injury” and the plaintiffs alleged that they were only exposed, but had no injury. In other words, just because plaintiffs said the case was a non-removable FELA case did not necessarily make it one. We then moved to dismiss the case on the grounds that the FELA occupied the field for claims about workplace negligence, but since it required the existence of an injury and the plaintiffs affirmatively alleged that they had none, they had failed to state a claim. The judge agreed, refused to remand the case to state court, and dismissed the case for failure to state a claim.

Plaintiffs’ counsel filed a Notice of Appeal to the Fourth Circuit Court of Appeals, then abandoned it.

Client avoids potential multi-million dollar judgment with separate-case argument

Our client, a national transportation company, was sued under the Federal Employers Liability Act (FELA) by many employees in “mass” asbestos complaints that first listed all of the plaintiffs, and then alleged general claims for malignant and non-malignant injury from asbestos exposure without specifying for each plaintiff what type of claim he had. Many of the plaintiffs had only non-malignant disease when the cases were filed, but while the cases were pending several plaintiffs developed what they thought was asbestos-related cancer. Several years later, their cases were set for trial, and plaintiffs’ counsel made exorbitant settlement demands for the plaintiffs with cancer.

We refused to make substantial offers, because, in our view, the malignant and non-malignant claims were two separate claims, which was the position that plaintiffs’ counsel had argued in earlier cases to defeat defenses of Release or Statute of Limitations. Since they were separate claims, any plaintiff who contracted cancer while his case was pending needed to file an amendment to the complaint or do something similarly substantial to preserve the cancer claim. Since they did not, the statute of limitations had expired and the cases were time-barred. Thus, for settlement purposes the plaintiffs’ claims were “worth” a few thousand dollars, instead of hundreds of thousands.

Plaintiff’s economist witness contradicts testimony during cross-examination

We were brought into the defense of this contract and tort case fewer than 40 days before trial started. Plaintiff sought millions in damages, and we did not have an opportunity to depose plaintiff’s economic witness who was a professor of Economics at a local university. We investigated the professor and obtained a copy of the syllabus for an economics course he taught. We then got a copy of the textbook he used to teach the course, and showed in cross-examination that the method he used to put a value of millions on the plaintiff’s supposed business losses was grossly different from the methods that he taught his students to use for business valuation. As a result, the plaintiff’s damage claim was shown to be grossly inflated and the jury returned a verdict that was a fraction of what plaintiff had been seeking.

Psychologist’s documents lead to settlement of case for client over contract dispute

Our client was sued for not giving plaintiff another 1-year contract after having done so for a series of years. The plaintiff, a local kennel owner, claimed this led to the loss of his business and the loss of his family.

Initially, we argued our client was well within its rights not to enter in another contract with the plaintiff for another year as it had fulfilled its contract for the year and had no obligation to issue another. We moved for summary judgment, but the case continued to trial.

Because the plaintiff was claiming emotional distress, we carefully investigated the plaintiff and discovered that he had seen a psychologist for several years. We obtained his records, and found that all of the things plaintiff claimed were caused by the expiration of his contract actually were present long beforehand. Moreover, some of the problems shown in the records were among the reasons our client decided not to award another contract.

In opening statement, we used the records to show that plaintiff’s personal and professional issues began before his contract lapsed, despite being interrupted by multiple objections by plaintiff’s counsel. As a result of the discovery of these records, the case was settled.

Successful representation of client in elementary school disciplinary case.

We successfully represented our client, an elementary school, in a lawsuit challenging the principal’s decision to suspend two students for intimidating behavior. After a bench trial, a Hamilton County Court of Common Pleas judge found in favor of the school and dismissed the lawsuit. The Court ruled that the school had not abused its discretion in determining the manner in which the two students would be disciplined.

The First District Court of Appeals affirmed the decision in favor of our client, holding the school handbook was not a contract, and, even if it was, the school did not abuse its discretion. It was an important decision in several respects. It reaffirmed the broad discretion given to private schools in disciplinary matters. It was the first appellate court in Hamilton County to address the issue of student discipline in the private elementary school context. And it was the first court in Ohio to squarely answer the question of whether a grade school handbook constitutes a binding contract on the school. In answering that question in the negative, Judge DeWine’s majority opinion represents a significant victory for private schools moving forward and only increases the burden student/parent plaintiffs face in challenging a disciplinary decision.

See D.T. v. St. Gabriel Consol. School, 1st Dist. Hamilton App. No. C-150640, 2016-Ohio-784

Breach of Contract Claims

Our client claimed a breach of a purchase agreement involving industrial goods. Following several days at trial, a judge in the Hamilton County Court of Common Pleas entered a judgment favorable to our client, including a total award in excess of $500,000 that included compensation, late fees and legal costs.

“Wrongful Living” Lawsuit

We successfully argued for our client, a hospital, before the Ohio Supreme Court that a “wrongful living” claim could not be presented in connection with resuscitation by a healthcare provider.

Breach of Contract Claim

We successfully prosecuted a breach of contract claim for our client after the defendant failed to pay for projects it had ordered. The issue was resolved favorably for our client through arbitration.

Breach of Contract and Defamation Claims

We successfully handled breach of contract and defamation claims involving competing accountants. The case was tried for three days in the Hamilton County Court of Common Pleas, after which a favorable settlement was reached.

Breach of Contract and Trade Secret Misappropriation Claims

We have represented a large physicians group in commercial litigation against several formerly-employed physicians based on breach of contract and misappropriation of trade secrets. One case was tried for five days in the Hamilton County Court of Common Pleas; we received a judgment favorable to our client for approximately $300,000. Other matters were also prosecuted successfully for the client.

Other Litigation Experience

Debbie Lydon has represented manufacturers, pharmaceutical companies, managed care organizations, hospitals, individual healthcare providers, employee leasing companies, staffing companies, importers, distributors, recruiters, insurance companies, publishers, accountants, fiduciaries, and others.

Representative matters:

The Procter & Gamble Company - Defense of Mass Tort Litigation, Regulatory, Transactional and Compliance Advice
Humana - Litigation Counsel
HealthSouth - Resolution of disputes with Ohio entities
Showa Denko KK - Defense of Mass Tort Litigation
Staffmark - Litigation Counsel
Yamaha Motor Corporation U.S.A. - Litigation Counsel
LasikPlus - Litigation Counsel and Risk Management
Shelter Insurance Companies - Litigation Counsel
Franciscan Health System - Litigation Counsel and Risk Management
Cincinnati Children's Hospital Medical Center - Litigation Counsel
Inova Health System - Litigation Counsel
Professional Risk Management Services - Litigation involving Psychiatrists
SST Bearing Corporation - Litigation Counsel
Riverhills Healthcare, Inc. - Outside and Litigation Counsel
Interlake Material Handling, Inc. - Litigation Counsel
Anonymous Hospitals - Defense of RICO, Health Care Fraud, Qui Tam and Malpractice allegations
Health Care Providers - Litigation counsel; advisor on various issues including regulatory matters, fraud & abuse, licensure, credentialing, risk management, criminal allegations, etc.
Fiduciaries - Litigation Counsel

Motor Vehicle Product Liability Litigation

Since 1986, representing numerous motor vehicle manufacturers in product liability cases in Kentucky and Indiana. Defect allegations defended against include seatbelts, airbag deployment, airbag non-deployment, no airbag, rollover propensity, roof intrusion, seatback deformation, fuel system, post-collision fire, electrical systems, unintended acceleration, absence of rear camera, and various claims relating to warnings. Significant experience in MDL practice and proposed class actions.

Successfully defended motor vehicle manufacturer at trial in March 2022.  High exposure case involving three fatalities and one significant injury.  Defect allegation involved frontal crashworthiness and bumper welds.  Unanimous defense verdict.

Provide representation in claims regarding state and federal credit acts

We represent third party lenders in claims regarding the West Virginia Consumer Credit Protection Act, Federal Truth in Lending Act and various other federal acts.

Defense of company in partnership dispute

Seth Schwartz represented our client, a contractor materials company (CMC), a fabricator of stainless steel rebar, in a significant case in New York Courts, ultimately reaching a favorable settlement focused on preserving our client’s business opportunities.

Our client had performed fabrication work for a former affiliate and, four years later, a dispute arose between the parties as to whether they entered into a partnership and the scope of the obligations owed between the parties contracted with a former affiliate (plaintiff) of CMC then contracted with another company while continuing to do business with both contractors. The former affiliate company brought a suit against our client in the Supreme Court of the State of New York. The plaintiff alleged, among other things, breach of contract, an action in accounting, conversion, breach of fiduciary duty, breach of the covenant of good faith and fair dealing, tortious interference with prospective business relations, fraud, unjust enrichment, promissory estoppel, misappropriation, negligent misrepresentation, and economic duress.

This matter was removed from the Supreme Court of the State of New York to the U.S. District Court for the Southern District of New York. Our client then brought counterclaims for breach of contract and breach of fiduciary duty. In addition, our client added a Third Party compliant against the plaintiff’s parent company in Denmark.

After substantial litigation, the case was ultimately settled on a favorable basis to our client, CMC.

Pharmacy Litigation

Successfully defended a pharmacy against claims of negligence in connection with a prescription that allegedly caused kidney damage. Defense verdict as lead trial counsel.

Client is paid after golf course files Chapter 11 Bankruptcy

A golf course filed a Chapter 11 Bankruptcy. Our client, a financial institution, had liens on all of the debtor’s assets. We fiercely litigated over whether the automatic stay should be modified so the bank could either start receiving monthly payments or foreclose on the property. Through litigation and negotiation, we were able to obtain a resolution which paid off the loan and benefitted our client.

Bankruptcy workout resolution allows client to be paid 100%

We were able to negotiate a settlement of a multi-faceted bankruptcy that allowed the borrower to get out of bankruptcy. The deal also turned non-performing loans into performing ones. This allowed our client, a financial institution, to be paid 100% on the loans over a mutually agreed upon period of time.

Liens on partially developed subdivision lead to reduction in client’s loss

Our client, a financial institution, had liens on a very partially developed subdivision. Most of the land was hilly with little access. There were significant disagreements about the valuation of the property, and there were two guarantors. Through creative problem solving and negotiations with the gurantors and debtor, we were able to negotiate the best possible result for our client, which reduced their potential loss by 60%.

Collection matter turns into criminal case due to our discovery work

In the course of enforcing a judgment from another state for our client, a motor sports company, we discovered hidden assets of the defendant. The discovery forced the defendant into bankruptcy, and we successfully objected to dischargability of the debts due to fraud. We established the defendant had obtained funds for race cars and racing purposes but had used the money for everything but the intended purposes. We also were able to uncover and recover a race car, and we worked with government investigators prosecuting the defendant. As a result, we were able to creatively achieve our client’s goals.