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Lahey fails to prevent evidence disclosure

The Lahey Clinic outside Boston, Massachusetts

A judge has partially denied an attempt by the Lahey Clinic to stop the disclosure of evidence in the civil case brought against it by the Bermuda Government.

The Massachusetts-based hospital filed a motion for a “brief stay of discovery” in the matter, arguing that it would ensure time and resources were not “needlessly expended” while the court considered a separate motion for the entire suit to be dismissed.

“The court’s ruling on the motion [to dismiss] may well dispose of the matter in its entirety,” lawyers for the hospital said.

But after an initial scheduling conference on Monday at the United States District Court in Massachusetts, Judge Indira Talwani denied Lahey’s motion to stay discovery in relation to initial disclosures, and imposed a May 24 deadline for both parties to complete those disclosures.

That means Lahey and the Bermuda Government will have to share information on individuals likely to have discoverable information — and the nature of that information — that could be used to support their claim or defence. They will also have to disclose copies of relevant documents they have in their possession.

The order released after Monday’s conference said the judge was still considering whether to halt written discovery, the formal investigation which takes place in the United States before a civil trial and which allows each side to obtain evidence from the other party. But she granted the motion in relation to halting the taking of depositions, where witnesses are questioned by attorneys.

The Bermuda Government filed its suit against Lahey on February 14, alleging that the hospital conspired with Ewart Brown, the former premier, on a “wildly successful” and “unlawful” enterprise that profited both “at the expense of the Bermudian government and people”.

One of the main thrusts of the claim is that Lahey paid elected official Dr Brown as a consultant to promote its interests on the island in breach of the United States’s Racketeer Influence and Corrupt Organisations Act.

Lahey has disclosed to the court the contract it had with Dr Brown, which prohibited him from taking any action on behalf of Lahey’s competitors for the provision of healthcare services to Bermuda’s residents.

The hospital says the civil suit attempts to “transform this consulting relationship into a bribery scheme, without alleging what, if any, official acts Dr Brown performed in his official capacity for the benefit of Lahey”. Dr Brown is not a party to the lawsuit and has said it contains “countless lies and ridiculous allegations”.

Lahey is defending the action.

In recent weeks, the hospital has taken out full-page adverts in The Royal Gazette, signed by 19 of its specialists doctors, to reassure patients that it will continue to work in Bermuda. “Our mission isn’t political, economic or social,” say the adverts. “It’s medical.”

Hospital spokesman Chris Murphy said last night: “Lahey Hospital & Medical Center continues to provide the care and support our patients in Bermuda need and deserve. The allegations against LHMC are baseless and disappointing and we are committed to defending this lawsuit through every step of the legal process.”