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Medical Society Settles Lawsuit

Posted on: Sunday, 23 October 2005, 18:00 CDT

By Julius A. Karash, The Kansas City Star, Mo.

Oct. 22--The Metropolitan Medical Society of Greater Kansas City this week agreed to settle a wrongful termination lawsuit for $500,000.

The settlement, coming on the heels of a jury verdict last year, may force the group to file for bankruptcy protection, said physician Gary Pettett, the medical society's president.

The wrongful termination lawsuit settled this week involved Marlena Hickerson, who had worked at the medical society since 1977 and was director of administration when she was fired in January 2003. She filed suit in Jackson County Circuit Court in Kansas City later that year.

Hickerson alleged that she was fired because she complained to society board members about improper financial dealings by Ronald Cosens, the medical society's executive director.

For example, Hickerson alleged that Cosens bought a TV and a digital video recording device for use as prizes at a 2000 ophthalmology and otolaryngology conference and billed the medical society for reimbursement, even though he kept the equipment for his own use.

Hickerson said the board took no action against Cosens, despite her complaints against him.

Hickerson also alleged that Cosens had had pornographic photos on his office computer, which had upset her and other women employees of the society.

The case went to trial on Monday and was settled Wednesday.

"It's very hard to come forward and report wrongdoing in the workplace, especially when it's your boss," said Hickerson's attorney, Lynne Bratcher.

"The Metropolitan Medical Society board of directors is pleased that the case is settled," Pettett said in a statement. "This was a claim where there was insurance coverage, and the insurance company decided to reach a settlement. The society was vigorously defending the case, and we believe we would have prevailed. ...We remain convinced that the society acted appropriately in this employment matter."

The settlement with Hickerson followed a case last summer in which a Jackson County Circuit Court jury in Independence awarded $551,500 to Shirley Stroud, a former medical society employee who made similar allegations about Cosens and the medical society.

Stroud had been Cosens' administrative assistant and had worked at the medical society since 1987. Her lawsuit alleged that she quit her job in April 2003 because Cosens had made her work environment difficult and was trying to force her to leave.

Cosens could not be reached for comment.

Motions by the medical society and Cosens for a new trial or to reduce the amounts of the verdicts are pending in Jackson County Circuit Court.

In addition, the medical society and Cosens have sued Executive Risk Indemnity Inc. and Stroud in a dispute over whether Executive Risk is obligated to cover the jury verdicts and defense costs in the Stroud case. That suit originally was filed in Jackson County Circuit Court in Independence but has been moved to federal court in Kansas City.

"In light of the current uncertainty on the insurance coverage for the first (Stroud) lawsuit, the society is considering all of its options, including protection of the bankruptcy court," Pettett said.

Executive Risk Indemnity is part of the Chubb Group of Insurance Cos., based in Warren, N.J.

Bratcher, who was also Stroud's attorney, said Stroud was named as a co-defendant in the suit against Executive Risk because of technical reasons.

The Metropolitan Medical Society of Greater Kansas City is a professional association of physicians, similar to the American Medical Association. Spokeswoman Jill Watson said the society has about 1,600 members, including retirees and medical students.

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Copyright (c) 2005, The Kansas City Star, Mo.

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Source: The Kansas City Star (Kansas City, Missouri)

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