Court Overturns $11 Million Verdict for Texas Spine Doctor, Citing Lack of Evidence in Confidential Files Case

COLLIN COUNTY, Texas — A state appellate court has nullified an almost $11 million award for damages that a jury had granted to Dr. Stephen Courtney, a spine specialist based in Plano. In a surprising turn of events, the Dallas’ Fifth Court of Appeals ruled against the originally awarded sum, concluding that the defendants, Dallas attorney Kelly Liebbe and Jonathan Rute, should not be held financially responsible.

The litigation’s origins traced back to allegations that Liebbe and Rute improperly acquired around 1,500 of Dr. Courtney’s confidential patient files. According to the spine doctor, they utilized these files to entice clients into filing medical malpractice suits against him. After the judgment from a 2021 civil trial in McKinney which favored Dr. Courtney, the appellate court reversed this decision on July 5, leaving Courtney and his practice without restitution from Liebbe and Rute.

According to the appellate court’s statement, they saw no “sufficient causal connection” between the purported actions of Liebbe and Rute and the financial damages Dr. Courtney purportedly suffered. The reversal is based on what the court perceived as a gap in the evidence necessary to justify the jury’s substantial initial damages award.

Reacting to the ruling, Dr. Courtney’s lawyer, Michael S. Alfred, expressed deep disappointment and concern over how the appeals court handled the previously established facts and its interpretation of the law. “For the Dallas Court of Appeals to nullify a Collin County jury’s verdict of this magnitude under these circumstances is a stunning miscarriage of justice,” Alfred said with evident frustration. He also hinted at plans to escalate this issue to the Supreme Court in hopes of overturning the appellate decision.

The case draws a more complex backdrop as it involves media involvement; Dr. Courtney had been the focal point in two investigative reports by WFAA in 2017, which accused him of prioritizing profit over patient care. Although these investigations were a significant blow to his reputation, Dr. Courtney never pressed charges against the station, aiming his legal action solely at Liebbe and Rute. He argued that the negative press and the defendant’s actions had almost halved his patient traffic, which resulted in substantial income loss.

The four-day jury trial, which included the two controversial WFAA reports as evidence, initially concluded with a decision hugely in favor of Dr. Courtney, a ruling now stripped by the appellate court.

Responding to the recent decision, Liebbe expressed relief and a sense of justice being served by the higher court’s judgment. In her perspective, Dr. Courtney failed to conclusively prove that her actions or those of Rute were directly responsible for any financial damages he might have incurred.

Rute’s legal representative, Ty Clevenger, echoed this sentiment, praising the appeals court’s decision to not only reverse the previous ruling but also completely denying a retrial. “It is a huge relief for Jonathan. His life has been on hold for at least two-and-half years,” said Clevenger, acknowledging the rare judicial relief their party has received.

As the fallout from this legal battle continues, its ripple effects on the medical and legal communities in Texas remain palpable. With the potential for a higher court review looming, both sides remain entrenched, signaling that the final chapter of this legal saga might still be unwritten.