Cook County Circuit Court Confirms Judgment Against MioMed Orthopaedics, Inc.

A December 2017 binding arbitration awarded unpaid sales representative commissions, punitive damages and attorney’s fees against Chicago medical device distributor MioMed Orthopaedics Inc. The circuit court judge in the case confirmed judgment against the company in the amount of $91,654.21, plus costs.

The judgment was entered after Kreisman Law Offices’ attorney Robert Kreisman moved the court for summary judgment. MioMed’s counsel opposed the motion. After the motion was granted and judgment entered, MioMed’s lawyer moved to have the court reconsider that judgment order, which was denied.

Up to now, MioMed has refused to satisfy the judgment. Post-judgment processes are underway. Under Illinois law, judgments carry a 9% per annum interest rate until satisfied.

In addition, the circuit court judge in this case also allowed Kreisman Law Offices to petition the court for additional costs associated with the bringing of the complaint to enforce the arbitration award after the binding arbitration awards went unsatisfied.

In another similar case, DJO, LLC v. MioMed Orthopaedics Inc., MioMed failed in another arbitration case, this time in California. Again it refused to satisfy the arbitration award resulting in a similar complaint to enforce the arbitration award. After judgment was entered in that case, MioMed appealed the decision. The California Appellate Court affirmed judgment against MioMed and in favor of DJO and allowed it to recover costs of the appeal.

In another Illinois case, Murchie v. Mark Sorensen and MioMed Orthopaedics, Inc., 2015 IL App (1^st) 133719, Mark Sorensen, the president and principal shareholder of MioMed Orthopaedics, was sued by a minority shareholder claiming oppression, corporate waste and violation of the corporate disclosure statute.

Illinois law provides minority shareholders with an array of remedies to escape mistreatment by majority shareholders. In that case, the plaintiff, Bradley Murchie, was a 10% owner of the defendant SyMed Inc. (a company that was dissolved when Sorensen transferred its assets to MioMed Orthopaedics, Inc.). Mark Sorensen was a 90% owner of SyMed. Under the Illinois Business Corporation Act, 805 ILCS 5/12.56, it was alleged, among other claims, that Sorensen chose not to disclose Symed’s corporate records, oppressed Murchie, and wasted corporate funds by transferring all SyMed’s assets to defendant MioMed Orthopaedics Inc., which Sorensen wholly owns. After a bench trial, the trial court awarded Murchie $319,288.93 in damages. Sorensen appealed and lost again. Sorensen remains the sole owner of MioMed at this time.

In the Murchie case, Sorensen’s scheme was to defraud or cheat the minority shareholder of SyMed by transferring assets to the new corporation that he created, MioMed Orthopaedics Inc. On appeal, the Illinois Appellate Court affirmed judgment against Sorensen and MioMed Orthopaedics Inc.

There seems to be a pattern in MioMed’s business practices: not paying sales representatives, not paying distributors, or scheming to defraud minority shareholders.

The case handled by Kreisman Law Offices is: Ed Smith d/b/a Sunshine Medical, Inc. v. MioMed Orthopaedics Inc., No. 18 L 2251 (Circuit Court of Cook County, Illinois). The case is still active in the pursuit of satisfaction of the outstanding judgment.

Kreisman Law Offices has been handling commercial litigation cases, business dispute cases and state and federal appellate matters for more than 40 years in and around Chicago, Cook County and its surrounding areas, including Schaumburg, Schiller Park, Bensenville, Waukegan, Aurora, Joliet, Bolingbrook, Romeoville, Willow Springs, Grayslake, Chicago (Back of the Yards, West Town, Little Italy, Greek Town, Lakeview, Albany Park, Rogers Park, South Shore), Vernon Hills, Buffalo Grove, Winnetka and Evanston, Ill.