TBA Law Blog

Posted by: Katharine Heriges on Aug 14, 2018

A Nashville-based physician services company will not receive $19 million in damages from a rival company after a Tennessee Court of Appeals judge overturned a 2016 ruling, The Nashville Post reports. Nashville's SpecialtyCare sued Pennsylvania-based Medsurant in 2015 over Medsurant's alleged interference in SpecialtyCare's takeover of a smaller company. Davidson County Chancellor Carol McCoy cited Medsurant repeatedly for not cooperating in the discovery process, and eventually ruled against them on the basis of intentionally destroying evidence to avoid liability. Medsurant's attorneys - Brant Phillips, Russell Stair and Matt Sinback of Bass Berry & Sims; Bob Mendes of Waypoint Law and Richard Simins of Montgomery McCracken Walker & Rhoads - appealed, arguing that the chancellor had made numerous mistakes, the punitive damages were excessive and their clients had overall not received a fair hearing. Judge Kenny Armstrong agreed. "From the totality of the circumstances, we conclude that the grant of default judgment as a sanction for discovery abuses was error," Armstrong wrote.