Desai says he didn’t see or approve settlement

In court papers, doctor’s personal lawyer objects to deal struck by trial lawyer

Friday, Oct. 2, 2009 | 2 a.m.

Dr. Dipak Desai, the majority owner of the Endoscopy Center of Southern Nevada, leaves a hearing at Las Vegas City Hall on March 3, 2008.

Plaintiffs' list of witnesses and documents

Desai, ex-patient settle but other defendants remain in lawsuit (9-26-2009)

Hepatitis outbreak

Dr. Dipak Desai has his personal lawyer opposing a settlement the physician’s chief trial lawyer struck last week with a former patient suing over last year’s hepatitis outbreak.

“It’s a scene straight out of the movie ‘Sybil,’ which is the classic exposition of schizophrenia,” said Will Kemp, one of the lead plaintiffs’ lawyers in the massive hepatitis litigation. “He has one attorney file a motion, then he has another one oppose it. I’ve never seen anything like it.”

But Desai’s personal attorney, Dennis Kennedy, contends in court papers he filed Thursday that Desai never saw the settlement and did not agree to the terms of it before the trial lawyer struck the deal with the former patient, Michael Washington.

Desai and his wife, who has been handling his personal and financial affairs since his 2008 stroke, also are upset because his insurance company won’t tell him how much it is set to pay Washington.

The trial lawyer, Brett Schoel, was representing Desai and his insurance company, Nevada Mutual Insurance, which agreed to pay an undisclosed amount to Washington and his wife, Josephine, in return for dropping Desai as a defendant in the case.

Washington alleges he was infected with the potentially deadly hepatitis C virus during a routine colonoscopy at Desai’s Endoscopy Center of Southern Nevada in July 2007.

The settlement, first reported by the Sun last week, was set to be the first with thousands of former patients suing Desai, including about 300 who allege lax medical procedures at Desai’s clinics caused them to be infected with the virus.

Washington’s case also was scheduled to be the first to go to trial Oct. 19, but his lawyer, Ed Bernstein, said Thursday the trial will likely be delayed a couple of months because lawyers have been unable to finish taking depositions from medical experts.

District Judge David Wall, who is presiding over the trial, has been asked to find that the settlement with Washington was made in good faith by both parties. Wall is to conduct a hearing Tuesday, which now will take into consideration objections from Desai’s personal attorney.

If Wall approves the settlement, the case will move forward against several other defendants, including the Endoscopy Center.

Bernstein said Kennedy’s court filing is part of a “contractual dispute” between Desai and his insurance company and has no bearing on whether a good-faith settlement was reached with Washington.

“Insurance companies generally get consent from their insured, but it’s not unusual for them to settle a case without consent,” Bernstein said.

But in his court papers, Kennedy noted that under Desai’s policy, Nevada Mutual Insurance “has no authority to unilaterally enter into a settlement because the settlement must be made with the written consent of Dr. Desai — consent which has not been given.”

Kennedy added, “There is no allegation made here that Mr. Schoel has done anything improper. All that is being said is that Dr. Desai had the right to know what was being done — purportedly on his behalf — and he was never consulted or advised. And as the ultimate indignity and act of disrespect, when he asked to see the terms to which his fiduciaries had obligated him, his request was imperiously dismissed.”

Kennedy described the insurance company’s failures to keep Desai in the loop during the negotiations as “acts of breathtaking arrogance.”

Kemp said he finds it “hilarious” that the insurance company hid the terms of the agreement from Desai.

“What is the big secret?” Kemp said. “Normally, the amount of a settlement is public, unless there is a compelling reason not to make it public. But I don’t see any reason not to make it public in this case.”

Discussion: 13 comments so far…

By Birdiedreamin

10/2/09 at 3:16 a.m.

Suggest removal

why is this criminal still enjoying his freedom???
will he go golfing today???
perhaps take in a movie???
bottom line...
what the hell is district attorney david roger doing???
what the hell is attorney general catherine cortez masto doing????
district attorney david roger is a failure...
district attorney david roger is a complete and total failure...
attorney general catherine cortez masto is a failure...
attorney general catherine cortez masto is a complete and total failure...
the citizens of nevada are not safe...
our public officials are failures...
complete and total failures!!!
By Planetearthcalling

10/2/09 at 6:35 a.m.

Suggest removal

But I thought they said Dr. Hepatitis had a stroke and was no longer capable of assisting in his own defense.
Sounds to me like he's doing just fine.
By afveteran

10/2/09 at 6:40 a.m.

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This has the smell of a trial lawyer pulling a fast one on the stroke-stricken doctor and the insurance company and the most important factor, his poor client Washington. But, then again, what does one expect out of an ambulance chaser? Unscrupulous greed, of course.
By Planetearthcalling

10/2/09 at 6:49 a.m.

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Well, if Dr. Hepatitis is trying to pull a fast one on the court, shouldn't the judge be pissed off enough to look into the matter.
I mean Dr Hep has been using his alleged stroke as a crutch for quite sometime now.
By illsaywhatsonmymind

10/2/09 at 6:56 a.m.

Suggest removal

I also read that he was incapable of assisting in his own defense due to the stroke, so how can he know what he did or did not agree to? Seems to me as if this new filing, shows he has more capacity to assist than he says. While you greedy attorneys are helping this criminal, people are still SUFFERING because of what the scumbag did. SHAME on all those helping this lowlife. What the hell is it going to take for the courts to say ENOUGH BS, bring his ass in. I think that everyone should immediately start picketing & stay picketing the courthouse, the prosecutors office, the state offices, until someone finally does something. This criminal belongs in jail.
By Planetearthcalling

10/2/09 at 8:32 a.m.

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The only possible outcome for this case is to strip Dr.Hepatitis of all his assets and divvy the proceeds to those who were sickened by his filthy medical clinics.
By Birdiedreamin

10/2/09 at 10 a.m.

Suggest removal

this criminal and his scum bag wife must laugh out loud all day every day...
in fact...
i wonder how long it takes those 2 maggots to fall asleep at night...
listen up boys and girls...
there is but one thing you need to know about this disaster...
the citizens of nevada are not safe...
our public officials are failures...
complete and total failures...
the medical board is a failure...
the medical board is a complete and total failure...
louis ling is a failure...
louis ling is a complete and total failure...
tony clark was a failure...
tony clark was a complete and total failure...
district attorney david roger is a failure...
district attorney david roger is a complete and total failure...
attorney general catherine cortez masto is a failure...
attorney general catherine cortez masto is a complete and total failure...
monkey boy gibbons is a failure...
monkey boy gibbons is a compete and total failure...
period!!!
end of story!!!
By afveteran

10/2/09 at 10:52 a.m.

Suggest removal

All lawsuits against the good doctor should be dismissed for frivolousness.
By vegas_tom

10/2/09 at 11:47 a.m.

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the story was Desai was to impaired to aid in his defense --- now this? Time to go to jail Desai.
By Birdiedreamin

10/2/09 at 1:07 p.m.

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listen up boys and girls...
want conclusive proof that the stupid pathetic lying republicans are stupid pathetic liars...
just look at afveteran's post above...
game, set, match!!!
By afveteran

10/2/09 at 3:21 p.m.

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Liberal leftwingers are always looking to make a quick buck off the system.
By gdperson

10/24/09 at 8:51 a.m.

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Why is Clark County and it's public officals down play the most serious outbreak of a killer virus in United States history. Why are they stalling giving papers about the investigation of the HCV?