Nevada Cancer Institute faces lawsuits by fired professionals

Associated Press

The Nevada Cancer Institute announced on April 8, 2011 that it was letting go up to 160 employees because of diminished revenue. The Summerlin-based cancer treatment and research facility has treated about 15,000 patients since its 2005 opening.

A doctor who made $575,000 per year is among the latest to sue the Nevada Cancer Institute, charging breach of his employment contract.

Dr. Richard R. Jacobs sued the institute last month in federal court in Joplin, Mo., charging he started work at the center on Nov. 15 as service chief of radiation oncology at a salary of $575,000 and that he was eligible for a $100,000 bonus.

A few months later, on Feb. 3, Jacobs was fired and was told he was being let go because he was unable to use a "TomoTherapy machine to develop radiation treatment plans that meet (NCI’s) standards," the lawsuit says.

However, Jacobs charged in his lawsuit that this information was inaccurate and irrelevant and that this was a pretense to avoid paying salary and benefits due Jacobs if was terminated without cause under what Jacobs calls a two-year employment agreement.

"Defendants have breached the employment agreement by terminating plaintiff purportedly 'for cause' for being 'unable to use a TomoTherapy machine to develop radiation treatment plans to meet (NCI’s) standards' without ever asking about or verifying plaintiff’s ability to meet this 'expectation' over several months of recruitment, interviews, planning and credentialing activity," charges the lawsuit by Jacobs, who now lives in Missouri and is demanding $1.5 million in damages.

The Cancer Institute has been served with the lawsuit, but has not yet filed a response in court. Its policy is to not comment on litigation.

A few months after Jacobs said he was fired, the Cancer Institute laid off some 150 employees on April 8, prompting at least two more lawsuits.

In one suit filed in federal court in Las Vegas last month, a fired worker claims the Cancer Institute failed to provide workers with two months warning required by federal law.

Another lawsuit was filed against the institute in Clark County District Court in Las Vegas last month by Meredith Mullins, who alleged breach of contract after she was fired April 14 but said she didn’t receive severance pay of one year as required by her contract.

Mullins said in her suit she was earning $255,000 per year as "administrative member in residence." She had been hired in 2009 as associate center director, research administration and senior vice president of research operations.

Mullins’ suit also alleges intentional infliction of emotional distress, charging NCI senior management was aware she suffered from cancer and needed medical insurance to cover her cancer treatment – but nevertheless fired her and cut off medical benefits to she and her fiancé. Mullins said in the suit that NCI was aware her fiancé also needs medical treatment and can’t qualify for medical insurance continuation coverage under COBRA.

That suit seeks unspecified special, compensatory and punitive damages.

Attorneys for the nonprofit Cancer Institute have not yet filed responses to the two Nevada lawsuits.

In announcing the April layoffs, the Cancer Institute said the cuts were needed to "help ensure the Institute’s long-term viability."

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