Timothy J Story, M.D. vs. St. Vincent Medical Group, Inc. d/b/a Ascension Medical Group – Indiana

Case Background

On May 6, 2021, Plaintiff  Dr. Timothy Story filed a Breach of Contract lawsuit in the Indiana State, Superior Court of Hamilton County (Case number: 29D05-2105-PL-003135). Judge David K. Najjar presided over the case.

Cause

Dr. Timothy J. Story, a physician in Indiana, entered into a Physician Employment Agreement with St. Vincent Medical Group (later known as Ascension Medical Group) on June 25, 2010. The agreement outlined specific termination provisions and required Dr. Story to notify Ascension of events such as legal proceedings and disciplinary actions. While employed by Ascension, Dr. Story co-owned a concierge medical practice, FirstLine PHC, with Dr. Kevin McCallum, another Ascension employee. FirstLine operated independently, with its own office space, phone number, and website.

On August 27, 2020, Ascension terminated Dr. Story’s employment, citing his alleged failure to notify them of a federal investigation into his controlled substance prescribing practices. Ascension claimed this failure violated the notification requirements in their agreement. However, Dr. Story stated that he was unaware of being the target or subject of any investigation. After his termination, Ascension took actions that hindered Dr. Story’s ability to continue practicing at FirstLine. These actions included using FirstLine’s phone number and website without permission, sending letters to Dr. Story’s patients implying he was no longer practicing, altering office signage to include Ascension’s name, and restricting his access to patient information and lab results.

Injuries

As a direct result of Ascension’s actions, Dr. Story suffered significant professional and personal harm. He immediately lost wages and compensation from his job at Ascension. The abrupt termination left Dr. Story unable to practice temporarily after Ascension canceled his professional liability insurance on August 28, 2020. He had to quickly secure new malpractice insurance before resuming his practice.

Dr. Story incurred out-of-pocket expenses for obtaining new insurance and managing the disruption to his practice. He also lost revenue and patients as Ascension’s actions disrupted the continuity of care with his existing patients. The business interruption at FirstLine PHC caused further financial losses. In addition to financial losses, Dr. Story suffered emotional distress from the sudden job loss and the difficulties in continuing his practice. Most significantly, Dr. Story alleged that Ascension’s actions severely damaged his professional reputation, potentially harming his long-term career prospects.

Damages

Dr. Story demanded a jury trial and sought compensatory damages for his losses, including lost earnings, benefits, future earning capacity, out-of-pocket expenses, emotional distress, and reputational injury. He also requested pre-judgment and post-judgment interest on any damages awarded.

Key Arguments and Proceedings

Legal representation

  • Plaintiff(s): Timothy J. Story, M.D.
    • Counsel for Plaintiff: Kathleen Ann Delaney| Matthew R. Gutwein | Christopher S. Stake
  • Defendant(s): Vincent Medical Group, Inc. d/b/a Ascension Medical Group – Indiana
    • Counsel for Defendants: Andrew M. McNeil| Bryan H. Babb | Bradley Matthew Dick

 Claims

Dr. Story filed three main claims against Ascension in a Breach of Contract lawsuit:

Tortious Interference with Business Relationships:

Dr. Story claimed that Ascension deliberately interfered with his business relationships with his patients, business partner Dr. McCallum, FirstLine PHC, and IUHN (FirstLine’s office space lessor). He argued that Ascension’s use of FirstLine’s contact information, changes to office signage, restricted access to patient information, and interference with Dr. McCallum’s call coverage were unjustified and illegal.

Breach of Contract:

Dr. Story asserted that Ascension breached their employment agreement by terminating him “for cause” without proper justification. He argued that even if he had a duty to notify Ascension of a federal investigation (which he denied), the agreement required Ascension to provide him with 10 days’ written notice and an opportunity to cure before termination. He claimed Ascension failed to follow these contractual procedures.

Declaratory Judgment:

Dr. Story sought several declaratory judgments. He asked the Court to declare that Ascension’s termination of the agreement “for cause” was invalid, that his duty to notify Ascension of a “required disclosure” under the agreement was not triggered, and that the non-compete and non-solicitation clauses in the agreement did not apply to his concierge practice at FirstLine.

Defense

St. Vincent Medical Group (AMG) denied most of Dr. Story’s allegations, asserting it lawfully terminated Dr. Story’s employment in line with the contract and denied breaching it. AMG claimed that its actions regarding Dr. Story’s termination were justified, precluding his claim for tortious interference with business relationships. They also argued that Dr. Story’s claims were barred or reduced due to his own material breach of the agreement, unclean hands, and failure to mitigate damages. Further, AMG stated that Dr. Story’s fault contributed to his alleged injuries and that any damages should be reduced accordingly. They denied misusing FirstLine’s property or interfering with his business relationships.

Jury Verdict

On October 3, 2024, the jury found in favor of Dr. Timothy J. Story on both claims against St. Vincent Medical Group, Inc. d/b/a Ascension Medical Group – Indiana. They awarded $300,000 for the breach of contract claim and $1,750,000 for the tortious interference with business relationships claim. To avoid double counting, the jury specified a total damage award of $2,050,000 for both claims combined in a Breach of contract lawsuit.

Court Documents:

Available Upon Request