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December 2017

Phoenix Team Obtains Defense Verdict for Gordon & Rees Client in Multifaceted Business Fraud Dispute

Gordon Rees Scully Mansukhani Phoenix attorney Andrew Jacob, with assistance from Phoenix co-Managing Partner Leon Silver, obtained a defense verdict in a multi-million dollar claim in favor of the firm’s client after a two-week jury trial. The dispute, involving multiple defendants and plaintiffs, arose from disagreement in the management of a hospice limited liability company. 

The majority member of the hospice sued two managing minority members, along with the firm's client, a nursing supervisor, who held a small minority interest as part of her compensation. The remaining defendants were found liable for having taken substantial salaries and bonuses and then resigning and relinquishing their memberships shortly before Medicare imposed capitation liability on the hospice. The capitation claim requires the hospice to pay back more than $2 million of payments received in prior years.

Although substantial damages were assessed against the co-defendants, Gordon & Rees attorneys were able to show the jury that their client bore no responsibility for their actions.

Andrew S. Jacob
Leon B. Silver



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