MANAGED CARE CONTRACT

Humama, Inc. -Louisville v. Eyecare Network, Inc.,
No. 05-98-01469-CV (Tex. App. July 26, 2001)

A vision care provider's contract with an HMO was terminated after the HMO contracted with another provider. The terminated provider and the HMO had been in negotiations for a new contract when the HMO's representative untruthfully denied that the HMO was negotiating with anyone else. The provider sued the HMO for fraud and tortuous interference with prospective business relations, even though the provider had accepted a payment of over $468,000 from the HMO in settlement of all claims under the contract. The Court of Appeals of Texas (Dallas) ruled that the settlement did not bar the provider's fraud and tortious interference claims, but failed to find any evidence that the misrepresentations by the HMO cause the provider any injuries. The lower court's judgment and award of damages were reversed and the appeals court ordered that the provider take nothing.