PITTSBURGH – An ophthalmology practice in Pittsburgh alleges one of its former doctors put them in debt for more than $300,000, resigned and then attempted to interfere with its operation and clientele.
Novak Berkowitz and Rosenberg P.C. of Pittsburgh filed suit in the Allegheny County Court of Common Pleas on July 24 versus Paul Rosenberg, of Bal Harbour, Fla.
The suit says Dr. Rosenberg signed an employment agreement to join the practice (then known as Novak Saul and Berkowitz) as well as a termination of practice agreement on July 1, 1985, working alongside one of the practice’s other officers, Dr. Peter J. Berkowitz.
The agreements dictated tenets that Rosenberg had an obligation to devote his full working time to rendering professional ethically on behalf of the practice, that Rosenberg would not compete with or against the practice and required Rosenberg to provide written notice to the practice at least 60 days prior to the effective date of the termination of the employment agreement.
Another tenet was that Rosenberg was required to send a draft letter to his patients, in the event he voluntarily terminated his affiliation with the practice.
The suit outlines disputes between Berkowitz and Rosenberg, connected to the latter’s actions allegedly causing the practice financial hardship.
“For example, Dr. Rosenberg used Eyelea, an anti-vascular endothelial growth factor medication distributed by Besse Medical, which is administered by injection into patients’ eyes. Dr. Rosenberg insisted upon using Eyelea rather than Avastin, a less-expensive medication, as he received a premium for using Eyelea,” the suit says.
The suit goes on to say Rosenberg withheld insurance bills relating to the use of Eyelea from Berkowitz, seizing more than $170,000 in reimbursements related to using Eyelea, which put the practice into a cash crisis and led to a deficit of $312,127.30. According to the practice’s productivity formula, Rosenberg was responsible for $181,252.32 of the debt – which the suit says he has not satisfied.
“On Jan. 27, 2020, to the detriment of the practice, Dr. Rosenberg canceled all appointments that he had scheduled with patients for the week. By cancelling all of these appointments, Dr. Rosenberg caused the practice significant economic and reputational harm. On Jan. 31, 2020, Dr. Rosenberg submitted a letter of resignation,” the suit states.
“Dr. Berkowitz was concerned about the practice and patient care; accordingly, he sought to reach an accord with Dr. Rosenberg. Dr. Rosenberg ignored Dr. Berkowitz’s overtures and then relinquished his rights to any stock in the practice. Dr. Rosenberg abandoned his patients, leaving no instructions for their care and no contact information in the event the practice needed to communicate with him about the care of his patients.”
According to the litigation, Berkowitz promptly sought to make arrangements with another ophthalmologist to cover the patients that Rosenberg abandoned and despite his best efforts, Rosenberg’s abandonment of the practice and his patients necessitated the referral of several patients to other practices and doctors, leading the practice to be harmed.
“Additionally, in March 2020, Dr. Rosenberg sent emails to patients advising them that he would no longer be treating patients in the Pittsburgh area and provided references to doctors not affiliated with the practice for their future care,” per the suit.
“Rosenberg took this action to interfere with the practice’s relationships with these patients. Upon information and belief, Dr. Rosenberg’s interference with the practice’s relationships with its patients has caused and will continue to cause it harm.”
For counts of breach of fiduciary duty, intentional interference with economic advantage and unjust enrichment, the plaintiff is seeking damages in excess of the prevailing arbitration limits, plus interest, costs of suit, punitive damages and any other damages deemed proper by the Court, plus a trial by jury.
The plaintiff is represented by Robert A. Bracken and Charles A. Lamberton of Bracken Lamberton, in Pittsburgh.
The defendant has not yet obtained legal counsel.
Allegheny County Court of Common Pleas case GD-20-003843
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com