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Park Dental Doctor Group Settles Litigation With Service Provider
Date:12/27/2007

MINNEAPOLIS, Dec. 27 /PRNewswire/ -- The dental group that operates the Park Dental and Dental Specialists clinics in Minnesota announced today that it has settled litigation with its administrative service provider, American Dental Partners, Inc. (ADPI) and ADPI's Minnesota subsidiary, PDHC, Ltd.

On December 14, 2007, a Hennepin County Minnesota jury awarded the dental group, known as PDG, P.A., and Dental Specialists of Minnesota, P.A., 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 the parties. On December 26, the parties reached 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 very pleased with the settlement, according to PDG President Dr. 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, P.A. will continue to do business under the Park Dental name," Gulon stated. At a few locations, Park Dental will be relocating to new c
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SOURCE Anthony Ostlund & Baer
Copyright©2007 PR Newswire.
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