HOUSTON – AZA won a $25.6 million breach of contract jury verdict in Harris County court September 3, 2024 in a case pitting AZA client doctors’ group Fondren Orthopedic Ltd. against healthcare giant HCA Healthcare.
Fondren and HCA (which took over for Columbia Hospital Corporation) were in a limited partnership that owns and operates Texas Orthopedic Hospital, a hospital specializing in orthopedic surgery services. The jury in the 80th district court found that HCA had broken the non-compete provisions of the contract by opening 10 competing hospitals in the Houston area. In addition, HCA prevented the Fondren group doctors from doing the same by invoking the same non-compete provisions the larger entity was blatantly breaking.
“HCA had the size, the scale and the power and felt they could do what they wanted. The hospital contract with Fondren was for 57 years, and about halfway through, they just decided they would no longer honor the contract,” said lead lawyer Joe Ahmad. “HCA owned 60% of the hospital with Fondren, but 100 percent of their improperly opened competing hospitals and sent business to their fully owned places.”
The case was covered by Texas Lawbook in “Houston Jury Finds HCA Hlethcare Owes Doctors $25.6M” (subscription required).
The AZA team included partners Mr. Ahmad and Kelsi Stayart White, associates Paul Turkevich and Karina Sanchez-Peralta, of counsel Kyle Poelker and Hilary Greene.
HCA was represented by a team from Latham Watkins, including former Enron lead prosecutor Sean Berkowitz.
Judge Jeralynn Manor oversaw the three-week trial and will hold a separate bench trial to determine attorney’s fees.
The case is Fondren Orthopedic Ltd vs. Columbia Hospital Corporation, Harris County case number 2021-68404.
AZA, or Ahmad, Zavitsanos & Mensing, is a Houston-based law firm that is home to true courtroom lawyers with a formidable track record in complex commercial litigation, including energy, healthcare, intellectual property and business dispute cases. AZA is recognized by Chambers USA 2024 as among the best in Texas in commercial law and intellectual property; has been listed by Best Lawyers’ Best Law Firms as one of the country’s best commercial litigation firms for 12 years; has been named Litigation Department of the Year by Texas Lawyer three times; and was previously dubbed a Texas Powerhouse law firm by Law360.