Medical Justice Services, Inc. Policy

8/6/2019 Medical Justice Services, Inc. Policy

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THE PHYSICIAN'S SHIELD

Services Provided by

Medical Justice Services Inc.

INTRODUCTION

Medical Justice Services Inc. (Medical Justice) has been established to deter the pursuit of

frivolous malpractice claims and lawsuits and to make available services to physicians, medical

doctors, and other medical specialists (Providers) who have been subjected to such lawsuits. The

primary purpose of this Plan is to prevent meritless claims. This principal objective is addressed

through the use of copyrighted template language and the implementation of a patient- physician

contract, in which the parties agree in advance to use only qualified and competent expert

witnesses in any potential claim, among other items ("Deterrence Plan Benefits"). The

secondary purpose of this Plan is to enable Providers with effective responses and recourses ifsuch frivolous suits are filed. These responsive options to the filing of non-meritorious medical

malpractice lawsuits may include the ability to file counterclaims in such a suit, to pursue

effective complaints against medical experts and others in their professional societies and in

other administrative venues, and to bring potential counterclaims against the Plaintiffs.

("Responsive Plan Benefits"). The Plan Benefits are provided by or administered by Medical

Justice to current individual Plan Members of Medical Justice.

I. DETERRENCE BENEFITS

Plan Deterrence Benefits include the licensing of copyrighted contract template language to Plan

Members. Plan Members are licensed to incorporate this language into a patient- physician

contract (Patient Contract), preferably with the assistance of an attorney licensed in the Statewhere they practice. Through this licensed contractual language, patients agree in advance only

to bring meritorious medical malpractice claims against the Provider. Both parties mutually agree

that they will only use expert witnesses who are certified by the American Board of Medical

Specialties in the same specialty as the Provider and members of the medical specialty society towhich the Provider belongs. The licensed contractual language recognizes patients rights to

pursue meritorious malpractice claims or suits. The parties also acknowledge the detrimental

effect of frivolous malpractice lawsuits on the cost and availability of medical care to all patients.

The Deterrence Plan Benefits, including the use of the copyrighted license contract template

language, is provided to current individual Plan Members of Medical Justice as long as the Plan

Member remains active with a prospective plan. These benefits do not cover non-member

providers who are partners, shareholders, members, or other principals of a professionalorganization or entity that contains a Medical Justice Plan Member.


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II. RESPONSE BENEFITS

The Response Plan Benefits set forth in this section are available to any Plan Member who has

been named as a Defendant in an action in a Court of Law (or arbitration) for medical

malpractice, in whole or in part. The Plan Benefits set forth in sections B and C below are

available to individual Plan Members for whom there has been a termination in favor of the PlanMember. Termination in favor of the Plan Member means that (a) the patient (or

representative) received no recovery from the malpractice claim or lawsuit; (b) the Plan

Member prevailed on the merits; and (c) court or arbitration forum found and concluded Plan

Member had no liability.

A. Counterclaim in Malpractice Lawsuit -- If a patient violates the contract by bringing a

frivolous lawsuit or attempting to use an unqualified expert witness, a counterclaim may

be brought against the patient in the underlying suit. An unqualified expert witness

would be one that was not board-certified in the Providers specialty and a member of the

Provider's medical specialty society. Such a counterclaim could be filed by the attorneydefending the Provider directly in response to the malpractice lawsuit. Such a

counterclaim could seek dismissal of the lawsuit. It could also seek to prevent the use of

the unqualified expert witness in the suit and thereby force the patient either to obtain a

qualified expert or dismiss the suit.

B. Medical Malpractice Expert Witnesses Testimony --If a lawsuit is terminated in favor

of a Plan Member, Medical Justice will provide services in connection with potentialcomplaints or proceedings before administrative bodies or professional societies. Upon

Plan Members delivering of documents detailing full expert witness testimonial record,

Medical Justice will arrange for review and analysis of the delivered medical malpractice

expert witnesses testimony provided during discovery or at trial/arbitration in theterminated lawsuit. This review and analysis typically is performed by other Plan

Member Providers, who agree to do so as part of their membership. This medical

analysis will address whether the experts conduct or testimony violated any of theguidelines or codes of conduct for such professional agencies or societies. If this

analysis determines that such guidelines or codes were violated, Medical Justice may

proceed, in its sole discretion, with filing and pursuing a complaint against the expertwitness with the respective agencies or societies in its own name whenever permitted. If

such a complaint must be filed by the Plan Member Provider, Medical Justice will

provide the Plan Member with all information it developed in the above review andanalysis to assist with filing such a complaint with one or more of the following:

(a) National, State or County Medical Associations,(b) Fellowships of National or State Specialty Societies,(c) State Agencies for Physician Disciplinary Action,(d) State Medical Licensing Boards, or(e) American Board of Medical Specialties.


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C. Countersuits -- If a lawsuit has been terminated in favor of a Plan Member, a countersuit

potentially also may be brought against the Patient for breach of the Patient Contract and

possibly other claims. The Plan Member may pursue such a potential countersuit

directly. Alternatively, the Plan Member may submit a request that Medical Justiceaccept an assignment of the plan member's breach of Patient Contract claim. If such a

request is submitted, Medical Justice will conduct a review and analysis to determine

whether it is willing to accept such an assignment of this claim. Based on this review

and analysis, Medical Justice will determine, in its sole and exclusive discretion, whether

to accept the requested assignment of such a claim.

If Medical Justice decides to accept the assignment, it will retain a locally-licensed

attorney to prepare and file a counterclaim complaint, conduct discovery and fully

prosecute said counterclaim within all legal and ethical boundaries. If Medical Justice

accepts the assignment, it will file and pursue the claim in its own name and will pay up

to $100,000 per assignmentall the attorney's fees and expenses necessary to pursue thematter. Medical Justice reserves the right to dismiss or conclude such claims in its solediscretion. Any potential damages recovery from the countersuit will go to MedicalJustice and will be used to further the organizations purposes (in the aggregate interestsof its members) noted above, including potentially paying the fees and expenses topursue future counterclaims in other matters. If Medical Justice declines to accept theassignment of the breach of patient contract claim, the Plan Member retains the option of

pursuing such counterclaims directly.

III. OBLIGATIONS OF PLAN MEMBERS

The Plan Member shall notify Medical Justice in writing within 60 days of the termination infavor of the Plan Member that the Plan Member wishes to exercises the Plans Responsive

Benefits. The Plan Member must cooperate with Medical Justice and furnish necessary and

relevant notes, records, copies of interviews, and shall assist Medical Justice in gathering

evidence and relevant materials and give necessary testimony by affidavit, deposition or at

trial/arbitration where the Plan Member elects to have Medical Justice pursue any remedies

directly. Plan Members also agree to participate in a medical review set forth in Section II.B

above for not more than a maximum of one case per year. Such review would be confined to the

specialty or area of expertise of the Plan Member.

IV. EXCLUSIONS

1. No Responsive Plan Benefits are provided unless the underlying medical malpracticeaction has been terminated in favor of the Plan Member.

2. Pre-existing matters are not covered. No Responsive Plan Benefits will be providedfor alleged acts of malpractice alleged to have occurred before the effective date of

the Plan.

3. (A separate plan can be purchased for pre-existing cases not yet Terminated in Favor ofPlan Member. This is outlined in part V, paragraph 4.)

4. Any action filed by the named Plan Member or its representative without notice to theCompany by the Plan Member against any proponents alleging medical malpractice


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against the Plan Member.

5. Any lawsuits filed against the Plan Member not considered medical malpractice. Anyaction against Plan Member's role as Medical Director or for credentialing.

6. Any action filed relating to abuse of prescription or controlled substances or substancesrequiring a Drug Enforcement Agency number.

7.

Any penalties or judgments awarded against any Plan Member or ordered by any court.8. Any matter that is not specifically listed in this Plan as a benefit under the Plan.9. Other legal matters that are not medical malpractice including but not limited to

employment matters, managed care contract matters, disputes with hospitals or other

licensed health care facilities, real estate matters, taxation matters, and sexual harassment

matters.

10. Any action arising out of or related to use or abuse of any illegal substance, intoxicants,or similar substances.

11. Any action arising out of or related to any fraudulent or dishonest acts, malicious acts oromissions, or any acts of moral turpitude.

12. Any other legal matters that are not medical in nature.13.

Benefits are personal to individual Plan Member. No benefits accrue to Plan Membersshareholders, partners, LLC members, or corporate equivalents.

V. CONDITIONS PRECEDENT

1. The Plan Member shall notify the Plan in writing within 60 days of the "termination infavor of the Plan Member" and of the Plan Member's desire to pursue Responsive Plan

Benefits.

2. The alleged act of malpractice complained of by the Plaintiff in the medical malpracticesuit must have occurred while coverage for the Plan Member was in effect under this

Plan.

3.

For benefits to be available for a particular action, coverage under this Plan must havebeen in force continuously, without lapse or termination, from and including the time of

the alleged act to and including the filing of the countersuit.

4. Not withstanding the provision of part IV, paragraph 3, coverage may be purchased forpre-existing cases not yet Terminated in Favor of Plan Member for up to ten years prior

to the application and effective dates of this Plan and the Plan Member agrees that the

Plan Member will be responsible for a co-payment (as defined in the Endorsement) of all

reasonable claims or benefits provided to said health professional under the terms and

conditions of this Plan for these specific pre-existing cases. This prior year provision

will not apply to any existing or known to exist malpractice cases unless revealed to the

company and agreed to in writing between Medical Justice and the physician.

VI. GENERAL PROVISIONS

Nothing in this agreement precludes a Plan Member from obtaining (at his or her own

expense) separate or independent services from those that may be offered by this Plan.

All unresolved disputes, controversies, or legal claims arising out of, relating to, or in connection

with Benefits related to the Physician's Shield (or its Endorsements), or breach, termination or

validity thereof, shall be submitted to binding arbitration conducted in accordance with the rules

of the American Arbitration Association. Such arbitration shall take place in Greensboro, North


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Carolina, and North Carolina law will govern all issues. The determination of the arbitrator(s)

shall be conclusive and binding on the parties, and any determination by the arbitrator(s) of an

award may be filed with the clerk of a court of competent jurisdiction as a final adjudication of

the claim involved, or application may be made to such court for judicial acceptance of the

award and an order of enforcement, as the case may be. The arbitrator(s) shall designate the

party to bear the expenses of the arbitrator(s) or the respective amounts of such expense to beborne by each party.

The parties understand that the Physician's Shield (and its Endorsements) contain an

agreement to arbitrate. After adoption of this agreement the parties understand that

neither will be able to bring a lawsuit concerning any dispute that may arise which is

covered by the arbitration agreement, unless it involves a question of constitutional rights.

Instead, each party agrees to submit any such dispute to an impartial arbitrator or

arbitrators.

The Physician's Shield (and eligibility for Plan Benefits) will begin at 12:01 Eastern Standard

Time on _____________ and terminate on ________________(unless renewed). If theaforementioned start and termination dates are blank, they will alternatively be labeled on the

attached receipt for payment. Reapplication for continued coverage is required and renewability

is not guaranteed.

The Physician's Shield is the plan itself and the application/receipt for plan membership. The

application has a release / disclaimer (which is also stated in the Physician's Shield) which

should be read carefully. No change of the terms is valid unless an Endorsement (signed by an

executive officer of Medical Justice) is attached to the Physician's Shield. No agent has the

authority to change any of the provisions

Medical Justice reserves the right to assign the revenue and service obligations to a licensee.


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provided. Plan member also understands there are specific circumstances that are not covered by

the Plan. No guarantee or warranty of result is implied including, but not limited to

counterclaim(s) in any venue; current or future malpractice case(s). Plan member agrees to

indemnify and hold harmless, Medical Justice Corp., Medical Justice Services Inc., Jeffrey

Segal, Medical Justice Client Services LLC, any or all of its principals, officers, directors,

employees, licensees, or affiliates against any claim and/or consequential, indirect, incidental,punitive, or special damages. The Plan represents the entire contract. Statements by brokers or

agents are not part of this contract.

Only an Executive Officer of the Plan Sponsor or Medical Justice Services, Inc. can approve a

change in this contract. Approved changes must be contained in a written amendment to the Plan

document signed in ink. Email or other electronic statements will not be binding on Plan

Sponsor or Medical Justice Corp. or Medical Justice Services, Inc.

Medical Justice Services, Inc. Policy

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