Story v. Ascension Medical Group Indiana

Case Background

Dr. Timothy Story filed a breach of contract lawsuit against Ascension Medical Group Indiana. He claimed wrongful termination and tortious interference after they wrongfully interfered with his business relationships by terminating his employment in violation of the contract. Dr. Story also argued that Ascension interfered with his medical practice after he complied with a subpoena to release patient records for a DEA investigation.

Dr. Story initially filed the case in Indiana Superior Court, Marion County. In response, Ascension filed a motion to change the venue, arguing that its main office was located in Hamilton County.

The Court approved the motion and transferred the case to Indiana Superior Court, Hamilton County. Judge David K. Najjar presided over this case. [Case number: 29D05-2105-PL-3135]

Cause

In 2005, Dr. Timothy Story, an internal medicine specialist, co-owned the concierge medical practice FirstLine PHC with Dr. Kevin McCallum. Patients paid an annual fee for 24/7 access to physicians. The doctors later expanded their practice by partnering with Ascension Medical Group Indiana. On June 25, 2010, Dr. Story signed an employment agreement with Ascension and began working there on July 1, 2010.

Both doctors worked for Ascension, which provided malpractice insurance, but had no ownership in FirstLine. In spring 2020, the DEA subpoenaed Dr. Story for medical records in connection with an investigation into one of his patients. Concerned, Dr. Story hired legal counsel, who confirmed he was not under investigation. Acting on this, Dr. Story provided the records but did not inform Ascension, as he was advised to keep it confidential.

The DEA noticed the records appeared to belong to Ascension, prompting them to contact Ascension for more records. Ascension then launched an investigation and discovered several issues, including Dr. Story’s failure to notify them about the subpoena and his lack of state-mandated agreements for opioid prescriptions. Ascension also found improper documentation of patient interactions and Medicare billing, leading to a $115,867 refund to the government.

Ascension viewed Dr. Story’s actions as a breach of his employment contract and called a meeting with him on August 26, 2020. After alleging his lack of cooperation, Ascension terminated his employment the following day. On August 28, Ascension canceled his malpractice insurance, delaying Dr. Story’s ability to treat patients.

Dr. Story eventually obtained new insurance and resumed practice in September 2020. Tensions escalated when Ascension informed Dr. McCallum it would no longer cover malpractice insurance for treating Dr. Story’s patients. Additionally, Ascension allegedly obstructed Dr. Story’s requests for patient lab results.

Damages

Dr. Timothy Story sought damages for the losses suffered as a result of his wrongful termination due to Ascension’s breach of contract and tortious interference.

Key Arguments and Proceedings

Legal Representation

  • Plaintiff(s): Dr. Timothy Story
    • Counsel for Plaintiff(s): Kathleen A. DeLaney | Christopher S. Stake
  • Defendant(s): Ascension Medical Group Indiana
    • Counsel for Defendant(s): Andrew M. McNeil | Bradley M. Dick

Claims

Dr. Story sued Ascension, claiming tortious interference with his business relationships and breach of contract. He maintained that he was never under investigation by the DEA, so he had no duty to inform Ascension about the subpoena according to his employment agreement.

Dr. Story argued that, even if he had such an obligation, Ascension was still required to give him notice and a ten-day window to remedy the situation. Since Ascension did not do this, Dr. Story contended they had breached the contract.

Defense

Ascension defended itself by denying any wrongdoing. It argued that Dr. Story had a clear duty under the contract to inform them about the subpoena and obtain their permission before releasing patient records. Ascension claimed that Dr. Story’s failure to meet this obligation, along with other alleged misconduct, justified his termination.

Additionally, Ascension contended that Indiana law did not recognize a claim for tortious interference in business relationships when the issues were covered by a contract. Ascension also pointed out that Dr. McCallum, a partner in FirstLine, had approved the sign change, so Ascension should not be held responsible.

The court granted partial summary judgment to Ascension regarding the sign change and the failure to cover Dr. Story’s malpractice insurance. The litigation continued with the remaining claims.

Jury Verdict

The case was heard over four days in Noblesville. After deliberating, the jury ruled in favor of Dr. Story on October 3, 2024. It awarded him $300,000 for his breach of contract claim and $1,750,000 for his claim of tortious interference.

This brought Dr. Story’s total award to $2,050,000. The court then entered a judgment for that amount. Later, it granted Dr. Story pre-judgment interest, which totaled $449,158.

Court Documents:

Available upon request