The Kerlan-Jobe Orthopaedic Clinic (KJOC), a world famous sports medicine clinic, has filed a $150 million lawsuit against Cedars Sinai Medical Care Foundation, Santa Monica Orthopaedic and Sports Medicine Group (SMOG), and affiliated physicians.
The complaint lists 19 claims including allegations of civil conspiracy, retaliation, breach of contract, and tortious interference with contractual relations. The claims arise from an alleged contractual relationship between Cedars-Sinai and Kerlan-Jobe which expired on October 1, 2024. The dispute also involves a purported 18-month winding down period that was supposed to occur with the contract’s expiration.
Kerlan-Jobe alleges Cedars-Sinai and other defendants have prevented patients from scheduling appointments with its doctors. In its press release, Kerlan-Jobe also claims that Cedars-Sinai and other defendants have conspired to “unlawfully reap a financial windfall for Cedars, ostensibly a ‘non-profit’ healthcare institution, by seizing control of Kerlan-Jobe’s key assets, brand and intellectual property rights, while paying nothing to Kerlan-Jobe in return.”
Other allegations include violations of non-compete and fiduciary duties as well as retaliation against Kerlan-Jobe physicians. All of this Kerlan-Jobe alleges is in an effort to force Kerlan-Jobe and its physicians to “dissolve” and be absorbed into SMOG.
In the press release, an unnamed Kerlan-Jobe spokesperson claimed, “Cedars-Sinai, hiding behind its non-profit status, has orchestrated an underhanded scheme to crush Kerlan-Jobe, steal its assets, and prioritize profits over patient care.”
Attorney Brian Sun of Norton Rose Fulbright US LLP spoke with OTW on behalf of Kerlan-Jobe, “Cedars has evolved into a medical provider infected with corporate greed while hiding behind its non-profit healthcare status. Its relentless quest for power, prestige and profits is illustrated by its ruthless campaign to dismantle and absorb KJOC, one of the country’s most respected orthopedic medical groups. Prioritizing the healthcare of the rich and famous over that of the general public is wholly at odds with the principles upon which KJOC was founded and has been known for almost half a century.”
The case was filed in Los Angeles County Superior Court under case number 25STCV01015. It is captioned The Kerlan-Jobe Orthopaedic Clinic, A Medical Group, Inc., A California Medical Corporation, et al. vs Cedars Sinai Medical Care Foundation, A California Nonprofit Public Benefit Corporation, et al.
The lawsuit lists the following as plaintiffs: The Kerlan-Jobe Orthopaedic Clinic, A Medical Group, Inc., a California medical corporation; Kerlan-Jobe, LLC, a California limited liability company; Daniel Kharrazi, M.D.; and Ronald Kvitne, M.D. The following are listed as defendants: Cedars Sinai Medical Care Foundation, a California nonprofit public benefit corporation; Richard Jacobs; Jill Martin; Mark Vrahas, M.D.; Bert Mandelbaum, M.D.; The Santa Monica Orthopaedic and Sports Medicine Group, A Medical Group, Inc., a California medical corporation; and Does 1-40.
Cedars-Sinai declined to comment on pending litigation.
