A Medical Device Daily

The dental group that operates the Park Dental and Dental Specialists (PDG; Minneapolis) clinics in Minnesota said it has settled litigation with its administrative service provider, American Dental Partners (ADP), and ADP’s Minnesota subsidiary, PDHC.

On Dec. 14, a Hennepin County, Minnesota, jury awarded the dental group and Dental Specialists of Minnesota more than $130 million — $88 million in compensatory damages and $42 million in punitive damages. The lawsuit involved claims by the dental group that ADP and PDHC had overstepped their authority under Minnesota law and had improperly engaged in conduct constituting the practice of dentistry, which by law can only be carried out by licensed dentists.

The case also involved claims that the service provider had violated various provisions of the parties’ contract and had improperly interfered with efforts by the dental group to establish new practices separate from ADP.

Following the large jury verdict, the judge overseeing the case ordered the parties to mediation in an effort to resolve all outstanding issues between them. On Dec. 26, the parties reported reaching a settlement agreement.

Under the settlement, which is contingent on approval by ADP’s lenders, the Park Dental doctor group will take back ownership of most of the 31 Park Dental and Dental Specialists clinic spaces that had been owned by the service provider.

The dental group is “pleased” with the settlement, according to PDG president John Gulon. He said that a key objective of the doctor group was to reach a settlement that would protect patient interests. “Under the agreement we reached with ADP, Park Dental and The Dental Specialists, doctors will continue to practice in their current locations and PDG will continue to do business under the Park Dental name,” Gulon said.

The dental group was represented in the litigation and mediation efforts by the law firm of Anthony Ostlund & Baer.