Oneida health practitioner sues insurance policies business amid capsule mill investigation

Dr. David Bruce Coffey’s Oneida clinic burned to the floor in January 2020, shortly just after the DEA allegations against him became community.

ONEIDA, Tenn. — A Scott County medical doctor who pleaded guilty to illegally distributing addictive pills has sued his insurance coverage firm for $4 million right after a January 2020 fire wrecked his Oneida clinic. 

Dr. David Bruce Coffey’s clinic submitted a breach of contract go well with versus Grange Coverage in Scott County Chancery Court docket in December 2020, documents exhibit. The coverage organization petitioned to shift the circumstance to federal court in January 2021. 

Coffey held a $2,815,670 insurance policy policy on his clinic when it burned to the floor in the early hours of January 30, 2020, the submitting confirmed. 

The Tennessee Bureau of Investigation is aiding Oneida Law enforcement in its investigation into what prompted the fire. A TBI spokesperson stated Tuesday it considers the fire suspicious, and the bureau’s investigation stays ongoing. 

In 2019, the Drug Enforcement Company alleged Coffey ran a streamlined operation that was the major supplier for drug trafficking companies in 3 southeastern Kentucky counties. It stated Coffey prescribed 4.9 million addictive tablets about eight a long time. 

Beneath the phrases of a plea settlement attained past drop with the U.S. Attorney’s Office, Coffey will plead responsible to illegally distributing 60 oxycodone capsules and depositing the income he manufactured illegally into his lender account. 

Coffey’s crimes have a optimum sentence of 20 decades in federal jail, nonetheless, he could experience less than a single calendar year in jail beneath the conditions of the plea offer, mentioned defense legal professional T. Scott Jones.   

The U.S. Attorney’s Workplace beforehand did not react to a ask for for comment. Coffey’s attorney in his felony circumstance, Greg Issacs, previously declined to remark, citing the pending federal subject.

Lawsuit above insurance policies plan

Coffey’s clinic sued Grange Insurance policies for $3,450,000 for “breach of agreement,” in addition to a “bad faith penalty” of $862,500. In all, Coffey seeks $4,312,500 next the hearth at 281 Underpass Drive in Oneida.

Grange denies Coffey is eligible for the cash he asked for, in accordance to the filings. The enterprise cites the insurance policies policy’s fraud, dishonesty and virus provisions, among other individuals, to help not shelling out out the plan.

The clinic’s submitting explained investigators from the insurance coverage business interviewed Coffey, his spouse, Charlsey, and his son, Brandon, less than oath in May perhaps. 

After the fireplace, Coffey moved his clinic to a new locale in Oneida, but noticed a “significant drop” in income, the filing said. It reported Grange established that decline in earnings was linked to the COVID-19 pandemic and refused to make reduction of small business payments.

Coffey contributed $150,000 of his possess money to hold viewing individuals, his filing claimed. He declared the clinic would shut in August 2020, citing the fireplace and COVID-19 troubles.

The matter is scheduled for a phone hearing in U.S. District Court for the Jap District of Tennessee on Wednesday. In accordance to a submitting, the functions have scheduled professional witness depositions for mid-February. A jury trial is at present scheduled for late June.