Metro Medical Supply, Inc. v. Rheumatology Associates, P.A.

Filing 15

INITIAL CASE MANAGEMENT ORDER: Discovery due by 9/17/2014. Dispositive Motions due by 11/17/2014. Replies due by 1/5/2015. Telephone Conference set for 8/18/2014 01:30 PM before Magistrate Judge Joe Brown. Jury Trial set for 4/14/2015 at 9:00 AM before Senior Judge John T. Nixon. Pretrial Conference set for 4/3/2015 at 10:00 AM before Senior Judge John T. Nixon. Signed by Magistrate Judge Joe Brown on 5/28/14. (DOCKET TEXT SUMMARY ONLY-ATTORNEYS MUST OPEN THE PDF AND READ THE ORDER.)(dt)

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF TENNESSEE
NASHVILLE DIVISION
METRO MEDICAL SUPPLY, INC.,
Plaintiff
vs.
RHEUMATOLOGY ASSOCIATES, P.A.,
a North Carolina professional association,
Defendant

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CASE NO. 3:14-CV-00789
JUDGE NIXON/BROWN
JURY DEMAND

INITIAL CASE MANAGEMENT ORDER
Pursuant to Local Rule 16.01(d)(2), the following Initial Case Management Plan
is adopted.
1.

JURISDICTION
(a)

Subject-Matter Jurisdiction

This Court has subject-matter jurisdiction over this case pursuant to 28 U.S.C.
§ 1332(a)(1), insofar as the parties are citizens of different states and the amount in controversy
exceeds $75,000.00, exclusive of interest and costs.
(b)

Personal Jurisdiction

RA filed its Motion to Dismiss (DE 8) and accompanying documents, wherein it argues
that this Court lacks personal jurisdiction because Tennessee does not have sufficient minimum
contacts with RA. Metro Medical filed a Response in Opposition to Defendant’s Motion to
Dismiss (DE 14) arguing that because this Court has personal jurisdiction over RA’s predecessor,
Arthritis Rheumatology & Osteoporosis Center of N.C., P.A. (“AROC”), it has imputed personal
jurisdiction over RA.
2.

PLAINTIFF’S THEORY OF THE CASE

Metro Medical sold and supplied various medical goods to Defendant’s predecessor
company AROC. When AROC failed to pay for those Medical Goods, Metro Medical obtained a
judgment against AROC in Case No. 12-403-I, in the Chancery Court for Davidson County,

Tennessee (“Judgment”). After obtaining the Judgment, Metro Medical initiated post-judgment
collection efforts in North Carolina. AROC has never paid on this Judgment. Instead, Dr. Zorn,
AROC’s president, sole stockholder, and board chairwoman of AROC, incorporated RA — a
company identical to AROC. RA was incorporated by Dr. Zorn with the express purpose of
hindering and delaying Metro Medical from collecting on its Judgment, and at the same time
allowing Dr. Zorn to continue to practice medicine without the burden of paying AROC’s
creditors.
Metro Medical asserts that RA is liable for the indebtedness under a theory of successor
liability and/or that the incorporation of RA by Dr. Zorn was expressly for the purpose of
hindering and delaying Metro Medical from collecting its Judgment.
3.

DEFENDANT’S THEORY OF THE CASE

Defendants currently are of the position that Plaintiff Metro Medical’s complaint should
be dismissed for lack of both jurisdiction and proper venue. In the alternative, Defendants
maintain that RA was not incorporated expressly for the purpose of hindering Plaintiff’s
collection efforts against AROC, and that all judgments held by Metro Medical against AROC
were properly disposed of during bankruptcy proceedings initiated July 23, 2013 by AROC
under Chapter 7 of the United States Bankruptcy Code in United States Bankruptcy Court for the
Eastern District of North Carolina, completed on December 19, 2013, and as such, no liability,
successor or otherwise, exists for such claims.
4.

IDENTIFICATION OF THE ISSUES
(a)

Whether RA is liable for the Judgment obtained against AROC on a

successor-liability theory.
(b)

Whether AROC fraudulently transferred tangible or intangible assets to

RA and therefore is liable for the amount necessary to satisfy the Judgment or for the
value of the assets transferred.
5.

ISSUES UNDER FRCP 13-15, 17-21, AND 23

At this time, the Parties do not anticipate any issues arising from the above-cited rules.

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6.

WITNESS
(a)

Potential Witnesses for Metro Medical
(i)
(ii)

Dr. Suzanne Zorn;

(iii)

Mr. Mark Wiener; and

(iv)
(b)

Employees of Metro Medical;

Employees of AROC and RA.

Potential Witnesses for RA
(i)
(ii)

Mr. Mark Wiener;

(iii)

Richard Dewitte Sparkman, Trustee; and

(iv)
7.

Dr. Suzanne Zorn;

Employees of AROC and RA.

INITIAL DISCLOSURES AND STAGING OF DISCOVERY
(a)

Initial Disclosures shall be made on or before: Tuesday, June 3, 2014.

(b)

All written discovery shall be completed on or before: Wednesday,

September 17, 2014.
(c)

All depositions shall be completed on or before: Friday, October 17,

(d)

Prior to filing any discovery-related motion, the Parties will schedule and

2014.

conduct a telephone conference with the Magistrate Judge. Counsel requesting the
conference call shall check with opposing counsel as to his/her availability before setting
a time certain with the Court.
8.

DISPOSITIVE MOTION
(a)

The deadline for filing dispositive motions shall be filed on or before:

Monday, November 17, 2014.
(b)

The deadline for filing a response shall be on or before: Monday,

December 15, 2014.
(c)

The deadline for filing a reply shall be on or before: Monday, January 5,

2015. 1

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Although there is typically a 14-day deadline for all replies, due to the holiday season, the Parties have consented
that the Reply deadline can be extended to 21 days.

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(d)

If a dispositive motion is filed prior to the above-stated deadline, all

subsequent deadlines shall be moved up accordingly, except for the reply deadline, which
shall be 14 days after the filing of any response.
(e)

Motion and response memoranda are limited, absent permission from this

Court, to 25 pages. Any reply shall be limited to five pages, absent court permission.
9.

OTHER DEADLINES

At this time, the Parties see no reason to set any other deadlines.
10.

ALTERNATIVE DISPUTE RESOLUTION

Metro Medical and RA consent to discuss engaging in alternative dispute resolution.
11.

CONSENT TO TRIAL BEFORE THE MAGISTRATE JUDGE

The parties do not consent to a trial by the Magistrate Judge.
12.

SUBSEQUENT CASE MANAGEMENT CONFERENCE

A telephone conference with Magistrate Judge Brown to discuss case progress and
alternative dispute resolution is set for Monday, August 18, 2014, at 1:30 p.m. To participate
in the conference call, parties will call 615-695-2851 at the scheduled time. A joint statement
of any unresolved issues must be submitted one full business day prior to the conference call.
13.

TARGET TRIAL DATE

The parties estimate that this jury trial will take three days, depending on what issues
remain for trial. After consulting with Judge Nixon’s courtroom deputy, this matter is set for
trial on April 14, 2015, at 9:00 a.m. Judge Nixon will conduct the final pretrial conference on
April 3, 2015, at 10:00 a.m. Judge Nixon will issue a separate order covering his requirements
for the final pretrial conference and the trial.
It is so ORDERED.
/s/
Joe B. Brown
JOE B. BROWN
UNITED STATES MAGISTRATE JUDGE

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