Defended the State of Louisiana in litigation and arbitration following termination of $200-million Medicaid services contract awarded after a public bid.
Represented the State of Louisiana, Department of Health in a dispute concerning a $200-million contract awarded after a public bid. The contractor sued multiple State defendants, claiming that the contract with LDH was wrongfully terminated, in bad faith. The Medicaid contract was terminated by the State following an investigation by the Louisiana Attorney General’s Office that revealed irregularities in the bidding process. After termination, the former Secretary of DHH resigned, was later indicted on nine counts of perjury, and the charges were later dropped. For three years, this was a very contentious, highly publicized matter with hundreds of thousands of documents produced, and dozens of fact witnesses deposed in locations all over the country. After extensive discovery, motion practice, and interlocutory appeals, this matter was scheduled for a four-week jury trial. However, on the eve of trial, the parties settled, agreeing to convert the termination from “for cause” to “for convenience” and allow the contractor to be paid for work performed under the contract. Commenting on the settlement, Louisiana Governor John Bel Edwards said, “We are very pleased to have reached this agreement…” The settlement provided for an arbitration proceeding to establish the final amount due the contractor. We subsequently handled the arbitration proceeding, which was heard before an American Arbitration Association three-member panel over a three-day period in May, 2017.