Midwest Medical Records agrees to settle class action over copying fees; attorneys set to get $1M

A settlement has been reached in a class action lawsuit against Midwest Medical Records Association Inc.

Class members who alleged they paid more for copies of medical records will be eligible for a refund, according to a settlement document filed in Cook County Circuit Court in Chicago.

Class counsel will receive $1 million in attorneys fees and $75,000 in costs and expenses.

Virginia Solon and Cynthia Zaletel will each receive an incentive award of $1,500, according to the settlement document.

"The defendants have vigorously denied and continue to deny each and all of the claims and contentions alleged by plaintiffs and the class, including all claims that any of their conduct constitutes wrongdoing or gives rise to any legal liability" the document states.

The defendants assert that the general per-page rates of the code during the class period did not govern the copying of electronic or digital medical records, according to the settlement document.

"Nonetheless, the defendants wish to settle and compromise the litigation to avoid further substantial expense and the inconvenience and distraction of protracted and burdensome litigation," the settlement document states.

The class action lawsuit was initially filed in 2004 in Cook Circuit Court.

The plaintiffs claimed from Oct. 1, 2001, through Dec. 31, 2007, Midwest charged excessive per-page fees for copying electronic or digital medical records that exceeded the specified per-page rates permitted by Illinois Code of Civil Procedure.

Under the settlement, each class member who submits a valid and timely claim form may be entitled to a refund equal to 70 percent of the amount each class member paid in excess of the amount the class member would have paid if the amount billed by Midwest had equaled the amount at the general per-page rates.

The plaintiffs are represented by Arthur Loevy, Michael Kanovitz, Jon Loevy, Roshna Bala Keen, Scott Rauscher and Edward M. Burnes of Loevy & Loevy in Chicago.

Midwest is represented by Alan R. Borlack of Bailey Borlack Nadelhoffer LLC in Chicago.

John Cardone, Mark Protus and William Jackson were represented by Richard J. Mikuta of Kendle Mikuta Fenstermaker in Chicago.

All opt-outs, objection and claim forms must be postmarked by Jan. 19.

Cook Circuit Court case number: 04-CH-7119.

This story was first published in Legal Newsline.