A Douglas County judge has ruled that the attorney for Optima, LLC, is disqualified from representing the small Roseburg company that provides custom software services in a lawsuit against ATRIO Health Plans.
Judge Frances Burge signed the ruling on Sept. 30 after hearing testimony on July 30, that disqualifies attorney Wm. Randolph (Randy) Turnbow from representing Optima in the suit.
The lawsuit claims that ATRIO “breached the master software license and technical services agreement” with Optima by failing to make any payments after January 2018 with 1 1/2 years left on the 2016 contract. The suit asks ATRIO to pay for the remaining $1.4 million of the contract.
Optima operates under the business name of “inteligenz” and set up a billing program for ATRIO, a company that offers Medicare Advantage health plans.
Burge, in making her ruling said, “With the intertwining relationship between DCIPA and ATRIO, it is reasonable that ATRIO would believe a lawyer advising them on matters such as attorney Turnbow did, that the attorney represented them.”
Burge said ATRIO met its burden of proving the continued representation of Turnbow as counsel for Optima would be a breach of fiduciary duty to ATRIO.
Meanwhile, ATRIO attorneys have filed a motion in Douglas County Circuit Court to transfer the case to Marion County where ATRIO had earlier filed a $60 million lawsuit against Optima and Performance Health Technology of Salem, which provided processing and related services for ATRIO. In the motion, they are asking for the two cases to be consolidated.
ATRIO claims in the motion, the Douglas County lawsuit should be moved to Marion County because it was filed “in an improper attempt to forum shop ATRIO’s claims and force ATRIO to assert its claims in Douglas County.”
ATRIO claims the suit against Optima and PH Tech was filed in Marion County because it is ATRIO’s principal place of business and that the president and other corporate officers of the company are located there and that the two cases shoulde be combined as one.
ATRIO claims in that suit that Performance Health Technology of Salem, a company that provided claims processing and related services, breached its contract and provided negligent services, and that Optima provided defective services.
ATRIO’s lawsuit alleges that Optima’s software failed to catch numerous errors by PH Tech.
PH Tech processes information to send to the Centers for Medicare and Medicaid for bills and claims.
ATRIO originated with its headquarters in Roseburg and still has offices in Roseburg, but moved its administration offices to Salem just a few years ago.