$18.8M judgment against West Conshy medical technology company is overturned

Medsurant Healh, aWest Conshohocken medical technology company, has won its appeal of a verdict that awarded damges to SpecialtyCare IOM Services. (Photo courtesy of flickr.com)
An appeals court in Tennessee has ruled in favor of Medsurant Health, a medical technology company based in West Conshohocken, overturning a $18.8 million jury verdict.

Medsurant Health had been sued in 2015 by SpecialtyCare IOM Services, which accused Medsurant of interfering with its contracts and business relationships, writes John George at bizjournals.com.

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The two companies compete as providers of neurophysiologic intraoperative monitoring (IOM) services, which are used on patients undergoing neurological surgery. During the operation, an IOM clinician attaches a computer system to the patient using electrodes that work with interactive software.

Medsurant hired nine IOM technicians from a bankrupt company, called ProNerve, that SpecialtyCare was in the process of acquiring, according to the lawsuit.

During the proceedings, SpecialtyCare asked for sanctions, including a default judgment, against Medsurant on the grounds the company allegedly did not respond to pretrial discovery requests in a timely fashion. A jury later awarded damages. The Court of Appeals concluded, however, that the default judgment should not have been entered, noting Medsurant’s conduct did not rise to the level where the sanction is permissible.

To read the full story, click here.

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