Cases

Judge Orders Comprehensive Care to Pay $1.3 Million to Former Employee

By August 22, 2011 April 9th, 2015 No Comments

Press Release

Miami, Florida, February 14, 2011 – Dr. Jerry Katzman, a respected Tampa physician and former executive with Comprehensive Care Corporation, recently won a $1,306,456 judgment against his former employer for breach of contract and a reinstatement of 10,000,000 Warrants.

In May 2009, Comprehensive Care, a healthcare company in Tampa Florida hired Dr. Katzman as its Executive Vice President of Strategic Development for a three year period. According to the employment contract, the company agreed to pay Dr. Katzman an annual salary of $390,000 with benefits and annual increases for cost of living.

In a shocking turnaround, and just two months into Dr. Katzman’s employment, Comprehensive Care’s Board of Directors voted to terminate his employment. The company issued Dr. Katzman a termination notice stating that he was being fired because he had allegedly failed to perform his job in a satisfactory manner. Soon after, Comprehensive Care filed suit against Dr. Katzman alleging that Dr. Katzman fraudulently induced Comprehensive Care to enter into the employment agreement by misrepresenting that he would work full time and failing to perform his best efforts.

Dismayed and disappointed by Compcare’s actions, Dr. Katzman filed an answer and counterclaim. Dr. Katzman alleged that Comprehensive Care breached the Agreement when it terminated his employment and failed to pay him pursuant to the terms of the contract. Dr. Katzman also sought indemnification and his adult children, who were recipients of certain stock warrants issued by the company pursuant to Dr. Katzman’s employment, also sued for wrongful termination of the stock warrants.

Pretrial, the court ruled that if Compcare could not demonstrate fraud, then Compcare breached the Agreement and Dr. Katzman was entitled to indemnification and the Katzman children were entitled to the warrants.

The case proceeded to trial on September 27, 2010 on Comprehensive Care’s claims of fraud in the inducement and breach of contract and Dr. Katzman’s counterclaim for breach of contract. The case went to the jury, and on October 1, 2010, the jury returned a verdict in favor for Dr. Katzman on Comprehensive Care’s fraud claim, finding that Dr. Katzman did not commit fraud in the inducement, but the jury failed to award Dr. Katzman damages.

Dr. Katzman filed post-trial motions asking the Court to correct the error of the jury in failing to award damages for salary and benefits and on January 28, 2011, U.S. District Judge Susan C. Buckley issued a final judgment in favor of Dr. Katzman and against comprehensive Care in the amount of $1,306,456.00 on Dr. Katzman’s Counterclaim for breach of contract as well as final judgment awarding indemnification (for an amount to be determined at a latter dates) and judgment reinstating the warrants.

“Dr. Katzman’s contract with Comprehensive Care Corporation was very clear,” said Melanie Damian, attorney for the counter-plaintiff. “Despite meeting his contractual obligation, Comprehensive Care terminated Dr. Katzman’s employment and wrongfully withheld Dr. Katzman’s salary and benefits, failed to pay the required indemnification and failed to honor the stock warrants. In the end, the court was fair and ruled that Comprehensive Care breached the contract and Dr. Katzman was awarded his damages.”