Bruce Bryen, CPA. Managing Partner The Snyder Group, LLC Printer Friendly Version

Litigation And Its Consequences: When Dentists Sue Each Other

Dentistry has been one of the few professions to have avoided litigation from its patients. There have been some court cases but, fortunately, they have occurred infrequently. The areas of litigation that have taken place on a regular basis concerning dentists have been within lawsuits brought by dentists against other dentists.

What Are Some Points of Contention?
One of the most frequent areas of litigation concerning lawsuits with dentists involves disputes about non-competition and non-solicitation issues within the employment, shareholder or operating agreements. These involve money and the rights of the practice owner, and also the patients’ rights. Who owns the patient charts and mailing lists? Is the geographic area narrow enough to not deprive the departing dentist of his livelihood? Is the time frame for the covenant short enough? Has there been consideration for the covenants previously agreed upon? Is there a buyout clause for the covenant?

Another area of disagreement is that of practice valuation when the dental practice is splitting up for reasons such as divorce, death, disability, retirement or the general lack of the ability to get along. With a fully executed, witnessed agreement, one wonders how litigation can commence. What is the purpose of the agreement if it doesn’t stop the litigation before money is spent on attorneys and experts for support of the documents? Many valuations stop at the date on the valuation. These appraisals are used to support buyout values, retirement formulas and other items stated in the dental practice ownership agreements. Unfortunately, many of the ownership contracts are not revised from year to year when values have changed, sometimes dramatically.

What Happens When a Resolution Does Not Occur and Court Is the Only Option?
This should be the last resort under all circumstances. The dentist should do everything possible to avoid going to court. There is no winner in litigation. The fees for attorneys, experts and support litigation staff are astronomical. The amount of time required at depositions, the effort expended gathering information for proofs of the case and the loss of time practicing dentistry because of the hours needed to prepare are overwhelming.

If there is no alternative to litigation, it is important for the dentist to organize the necessary data to support the position taken. Since there are few lawsuits involving dentists, there are also few experts who have experience in litigation with dentists. Lawyers who are good litigators may not understand dentistry or the agreements signed by the dentists. The contracts themselves may be weak because of a lack of experience by those who prepared the original agreements, if there even are agreements. If they are not constantly updated, or if they lack formulas for the computation of value on a current basis, the executed contract may be meaningless in support of the position taken by the dentist. It is critical for purposes of credibility to retain experts who have experience in litigation that concerns dentistry and not expertise in some other field like manufacturing, etc.

How to Prepare for Trial
Find an attorney who has experience with dentistry. The real estate attorney or general attorney who has represented you for years is probably not the correct person to assist you. That attorney usually does not have experience with dental practices. That attorney probably does not know who to retain as an expert for support because of the lack of experience in representing dentists. Your accountant, if experienced in litigation matters, can be extremely helpful. Do not correspond with your adversary, if possible, while the litigation is taking place. Keep good notes of your conversations with your own experts. Write down what they are requesting and gather what is needed promptly for them. The more prepared and accurate you are, the less expensive your costs will be. Try not to call your experts unless there is something that is important to review. Every time a phone call is made, a charge is incurred.

Contact this author for additional information about litigation and its effect on your practice. As an expert in providing testimony and support litigation services for dentists, with over thirty five years of experience in this field, your comfort level will be enhanced with the phone call.

Bruce Bryen, CPA has successfully assisted dentists with their personal and financial matters for more than thirty years. As a partner in The Snyder Group, he delivers creative and prudent financial strategies to help dentists build and protect wealth at every stage of their careers. His extensive expertise includes financing, debt restructuring, retirement planning and tax advising to help dentists keep more of what they earn. Bruce is also experienced in providing litigation support services and has testified on numerous occasions as an expert witness.

If you would like additional help or are interested in having Bruce Bryen speak to your dental society or study club, he can be reached at bruce@thedentistsnetwork.net  or at 1-800-988-5674.

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