A physical therapy firm in De Queen won a jury verdict of $6.5 million last week against the only nursing home in the western Arkansas community.
De Queen Physical Therapy and Occupational Therapy, owned by Darin and Kim Tollett, sued Brookewood Nursing and Rehab in De Queen and Realization Rehab of Tyler, Texas, in 2012, alleging breach of contract and conspiracy, among other claims.
The lawsuit was filed in Sevier County Circuit Court.
The jury awarded the Tolletts a $4 million claim against Brookewood, a $500,000 claim against Realization Rehab and $2 million in punitive damages.
After 15 years of providing therapy for Brookewood's nursing home patients, the Tolletts signed a 20-year contract in 2006 to be the exclusive provider of therapy services to Brookewood, according to the lawsuit. At the time, the Tolletts were the only therapists in De Queen.
Some time later, Brookewood bought the other nursing home in De Queen, Crystal Falls nursing home. Within three months, Steve Marinick, owner and chief executive officer of Brookewood, closed Crystal Falls and fired the staff, the lawsuit claimed.
That left Brookewood as the only nursing home in De Queen, the lawsuit said.
In 2012, a recruiter for Realization Rehab contacted Brookewood, seeking to provide therapy services for the nursing home, the lawsuit said. The recruiter claimed Realization Rehab could provide more Medicare billings than Brookewood was receiving, meaning it could make more money for Brookewood, according to the lawsuit.
Subsequently, Marinick asked the Tolletts to alter their billing practices and submit more requests for Medicare reimbursements. The Tolletts said they were properly handling the billing and declined to "engage in any unethical conduct," the lawsuit said.
In June 2012, Brookewood canceled De Queen Physical Therapy and Occupational Therapy's 20-year contract and later hired Realization Rehab to provide therapy services at the nursing home.
With no other nursing home in De Queen, the Tolletts lost their only client and all of their business, the lawsuit said.
Brookewood also failed to pay the Tolletts for eight months in work they had performed, totaling more than $80,000, the lawsuit said.
"[Brookewood] really put a lot of financial pressure on my clients," said Dan Turner, an attorney with Arnold, Batson, Turner & Turner in Arkadelphia who represented the Tolletts. "They couldn't find anywhere else to work because De Queen is not a big market."
The Tolletts appreciated the verdict, but "they were not looking for a big lottery payment or a windfall," Turner said.
"We didn't ask for a specific amount of punitive damages," Turner said. "The jury felt like it was worth $2 million more, I guess."
Niki Cung, an attorney with Kutak Rock in Fayetteville, who represented Brookewood, said she will file the "appropriate motion" before a decision about whether to appeal the verdict is made.
Business on 07/08/2014