Attorney’s lawsuit sputters to end, but animosity, investigation persist

Like so many civil lawsuits that begin with fury, the defamation case Robert Eglet filed against fellow attorney Nelson Cohen has fizzled. But nobody would say their antipathy has faded away, even though the lawsuit has.

You may recall that in May 2006, Eglet sued Cohen and accused him of defamation after a heated exchange in which Cohen said Eglet would be going to jail.

Cohen, an insurance defense attorney, was referring to the ongoing FBI investigation into certain personal injury attorneys and doctors thought to be in cahoots and taking actions to run up medical costs and getting more money for themselves ... at the expense of their clients/patients.

Eglet was enraged because during an arbitration meeting, Cohen said, among other things, "I can put my kids to bed at night and not worry about the FBI knocking on my door."

The lawsuit was unusual in two respects. First, lawyers don't often sue each other. And it seemed destined to fail because the comments were made during an arbitration hearing, a quasi-judicial event in which speech is generally protected.

Besides suing, Eglet took another punitive step. He asked the State Bar of Nevada to investigate and discipline Cohen, claiming his comments violated Nevada Supreme Court rules.

Fast-forward through 17 months, and Eglet drops both his lawsuit and his complaint to the State Bar.

But the lawsuit did what it was supposed to do. It made lawyers more careful about what they say about Eglet and the FBI investigation.

Eglet's attorney Dominic Gentile, asked Tuesday why he agreed to drop the case, said, "It made some sense in the big picture for both sides." Then he declined to elaborate.

Cohen's explanation: "Eglet didn't want to go through a deposition." Because Cohen would want to prove what he said was based on fact, Eglet would have been questioned under oath about the FBI probe.

Gentile said neither he nor Eglet would respond to Cohen's comments about why the case was settled. "We can't discuss it; that was part of the deal." However, I couldn't find that in the stipulation, and Cohen's attorney Steven Jaffe said there was no confidentiality agreement.

Cohen viewed the stipulation to dismiss the case as "a complete vindication." Then he went on to compare Eglet, a successful personal injury attorney known for winning awards in the millions, to "the school bully. And finally somebody stood up to him."

Cohen said he was out tens of thousands of dollars battling the lawsuit. But it was the complaint with the State Bar that was the most aggravating to Cohen. "He was trying to take from my family, take away my livelihood.

Cohen certainly hasn't toned down his statements about Eglet. "It disgusts me to be in the same room with him."

Anyone who thinks the probe has stopped since the indictment of consultant Howard Awand and attorney Noel Gage is indulging in wishful thinking.

Records are still being sought, and witnesses are still being questioned, according to multiple sources. At least two doctors already have testified as cooperating government witnesses.

Hundreds of thousands of pages of documents are being reviewed as investigators look for possible collusion between doctors and lawyers to drive up the settlement costs of personal injury claims. The Internal Revenue Service is also involved.

Far more difficult to prove, but far more horrifying if true: Were unnecessary medical treatments, even surgeries, performed not to help a patient, but to build up the medical costs?

Meanwhile, as the investigation into others continues, Awand and Gage are set for trial in February, and six federal prosecutors are involved in the case, a clue that this is a big one. The latest to join the prosecution team is Assistant U.S. Attorney Daniel Schiess, the persuasive prosecutor in the federal corruption case against four former Clark County commissioners who took bribes from topless club owner Michael Galardi.

Actually, there hasn't been much buzz about the investigation into doctors and lawyers lately, and maybe that's partly because Eglet sued Cohen.

But if you're someone who fears you're a grand jury target, don't get too complacent quite yet. Devoting six federal prosecutors to an investigation means this isn't just about indicting Gage and Awand.

Jane Ann Morrison's column appears Monday, Thursday and Saturday. E-mail her at Jane@reviewjournal.com or call (702) 383-0275.