(Photo: Shutterstock.com)Houston PI Firm Settles With Medical Providers Over Payments for Treating Clients
Plaintiffs attorney Jared Johnson said he reached a settlement with Cox Pradia Law Firm several hours after his clients sued the firm.
April 01, 2019 at 06:29 PM
3 minute read
Houston's Cox Pradia Law Firm, which markets itself as BigCityAccidents.com, has settled a $1 million lawsuit filed by two medical providers that alleged the personal injury firm failed to reimburse them for treating patients.
The plaintiffs filed the suit against Cox Pradia on the afternoon of March 29, and agreed to settlement terms by late that evening, according to plaintiffs attorney Jared Johnson, of Sullins Johnston Rohrbach & Magers in Houston.
Johnson said that after he worked out an agreement with the defendant, he filed a notice of non-suit at 10:15 p.m. March 29 on behalf of his clients. Johnson said terms of the settlement are confidential, but his clients are “satisfied” with the agreement.
Troy Pradia, managing partner of Cox Pradia, confirmed the settlement Monday, but declined to discuss the terms.
“We had a small dispute which was discussed for a couple hours, and they non-suited it on the same day,” he said, adding that the plaintiffs are “great providers.”
The plaintiffs, 1st Choice Accident & Injury and ProHealth Medical Group Management, leveled claims including fraud, breach of fiduciary duty, breach of contract, conversion and unjust enrichment against Cox Pradia, and they sought attorney fees.
1st Choice alleged in its petition that Cox Pradia owed it $732,410 for services it provided to firm clients from July 2012 through August 2018. ProHealth Medical sought $3,750 for services provided in October 2017.
The plaintiffs alleged in 1st Choice Accident & Injury v. The Cox Pradia Law Firm that Cox Pradia sought medical treatment from them for clients with personal injury claims or causes of action. They alleged the firm provided them with “letters of protection,” in which an attorney promises to pay the medical provider after the lawyer settles the litigation and has the settlement funds.
They asserted that, because of the letters of protection, they agreed to treat the firm's clients without making immediate demands for payment. However, the plaintiffs alleged that Cox Pradia distributed proceeds of settlements to itself and clients without paying the providers.
“Plaintiffs have made numerous and repeated inquiries into the status of defendant's clients' cases by both letter and telephone but have not been able to resolve any of the 197 letters of protection,” the medical providers claimed in the petition.
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Medical Providers Claim PI Firm Failed to Pay for Client Treatment
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