David Stockman, MD, has filed for Chapter 11 protection on behalf of the Michigan Institute of Forensic Science & Medicine, which he owns. The filing delays a court from entering a $551,800 arbitration award to Russell Bush, MD, whom Dr. Stockman was found to have defamed and intentionally harmed, M Live reported April 8.
What happened?
- MIFSM’s 10-year contract with Saginaw County was terminated after Dr. Stockman fired Dr. Bush without county authorization and allegedly performed autopsies without certification. A judge then determined that Dr. Stockman, allegedly acting with intent and malice, defamed Dr. Bush and interfered with his relationship with Saginaw County, leading to the financial award.
- Although MIFSM filed for Chapter 11, Dr. Stockman did not seek bankruptcy protection as an individual, leaving him personally liable, according to the outlet. Dr. Stockman is seeking to extend MIFSM’s automatic stay to cover himself, but the court has not approved that request.
Who else is involved?
- Dr. Stockman and other entities he owns face multiple default judgments, including $122,292 to the federal savings bank for the Teachers Insurance and Annuity Association for unpaid equipment leases, $131,626 to Wildfire Credit Union and $55,000 to forensic pathologist Donald Higgs, MD.
- Two additional doctors — one from Harvard Medical School and another from Washington, D.C. — are also suing Dr. Stockman and his companies for alleged unpaid wages totaling over $142,000. These cases are pending.
What happens next?
- According to the report, Dr. Stockman, who is not an attorney, filed MIFSM’s bankruptcy pro se, or on his own behalf, which is not allowed for corporations. A judge has ordered him to appear and justify this filing, potentially putting the bankruptcy filing in jeopardy.
- Additionally, Dr. Stockman’s attorney has withdrawn from the case, and Dr. Stockman now has 28 days to find new representation for MIFSM.
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