Intentional Torts
Radiologist: millions in income lost by Allstate's defamation
| (P) $21,000,000.00 | |
| Defamation , Business Law - Intentional Interference with a Contract, Business Law - Intentional Interference with Business Expectancy | |
| Jon H. Dodson, M.D. and Forest Park Medical Clinic, P.A. v. Allstate Insurance Co., No. CV 97-9562 | |
| Pulaski County Circuit Court, 16th Division, AR | |
| Ellen B. Brantley |
|
| 06-02-2009 |
- David M. Hargis; David M. Hargis, Attorney at Law; Little Rock, AR, for Jon H. Dodson, M.D., Forest Park Medical Clinic, P.A.
- Charles Venus Ph.D.; Economics; Little Rock, AR called by: David Hargis
- Gary Fye; Claims Analysis; Reno, NV called by: David Hargis
- John E. Moore; Huckabay, Munson, Rowlett & Moore, P.A.; Little Rock, AR, for Allstate Insurance Co.
- None
In the early 1990s, and continuing for the next 10 years, plaintiff Jon Dodson, 50s, a board-certified radiologist in Little Rock, was subject to repeated claims investigations by Allstate Insurance Co.
Dodson alleged that he became a target of a claims practice that allowed Allstate to save approximately $270 million for each five-percent reduction in personal injury claims payments. This was designed to exploit the American judicial system, according to Dodson.
Allstate told patients who were either insured or third-party claimants that Dodson was running a criminal operation; that he wasn't licensed; he had untrained personnel; he conducted intentional overcharges for services never provided; and that personal injury attorneys in the area were told by Allstate not to send their clients to Dodson because the insurance company was going to put him out of business.
Dodson and his medical practice sued Allstate for defamation and intentional interference with contract and economic expectations. The trial was the third in a series of trials, as the prior two were appealed before the state Supreme Court. According to the plaintiff's insurance claims expert, the defendant's practices violated industry standards because Allstate sought to exploit the inaccessibility of the country's judicial system in small cases, which fell in the 10th percentile and whose costs were too high to process. The defendant offered claims settlements in the lowest 10th percentile so that a huge bulk would carry down in the bottom-line profits for the defendant insurance company.
The defendant denied the allegations. Defense counsel asserted that, due to myriad frauds committed in insurance transactions by physicians and claimants, Allstate had a duty to ferret out such transactions on behalf of its policyholders; therefore, its investigations of the plaintiff were reasonable and necessary.
The plaintiff's economist projected a range of $6 million to $15 million in lost income.
Dodson, who was in his 70s at trial and still practicing medicine, talked about the 10-plus years of defamation that he experienced as a result of the defendant's actions. He sought damages for emotional distress.
The defense's certified public accounting expert said that any income loss, if there was such loss, was de minimis because the radiologist continued to work past age 65.
The jury rendered a plaintiff's verdict and awarded $21 million.
Jon H. Dodson, M.D.
$15,000,000 Personal Injury: Punitive Exemplary Damages
$6,000,000 Personal Injury: compensatory damages
The defense filed motions for new trial and remittitur.
This report is based on information that was provided by plaintiffs' counsel. Defense counsel declined to contribute.
