Gray Reed & McGraw Wins Jury Verdict that Exonerates Landlord

March 22, 2010

Harris County Jury Rejects Claims Against Medical Properties Trust, Inc., Other Entities

HOUSTON, TEXAS - Gray Reed & McGraw is pleased to announce that a State District Court jury in Harris County, Texas has rejected all claims brought against its client, Medical Properties Trust, Inc. (NYSE: MPW), by a group of physicians whose efforts to create and operate a new hospital in Houston failed in 2006. Jurors in the court of state District Judge Al Bennett found against six doctors who filed a lawsuit accusing Medical Properties Trust, Inc. and others of contributing to the demise of doctor-owned Houston Town & Country Hospital.

D. Scott Funk and James M. McGraw, trial partners with Gray Reed& McGraw, led the defense team for MPT. Mr. Funk has represented plaintiffs and defendants in all aspects of complex and sophisticated commercial and general civil litigation and arbitrations, including cases involving breach of contract, fraud, securities fraud, real estate, oil and gas, trade secrets, non-compete agreements, accountings, minority shareholder oppression, violations of the DTPA and UCC, as well as defense of serious injury and wrongful death claims.  In a career spanning over 23 years of litigation, Mr. McGraw has represented both plaintiffs and defendants in the trial and appeal of complex civil business cases in state and federal courts. He has successfully prosecuted and defended anti-trust actions and breach of contract claims as well as business tort, personal injury and insurance cases. He has led the defense of several clients in actions caused by oil spills and pipeline ruptures.

After a trial that  spanned 10 weeks, the jury found unanimously in favor of Medical Properties  Trust, Inc. on all counts brought against it regarding the termination of the leases of Houston Town and Country Hospital in  2006.  In the lawsuit, the physicians asserted that MPT's actions interfered with their efforts to enroll Medicare patients in a for-profit insurance arrangement that  would have resulted in multi-million dollar payments to the physicians from the insurance company.

"We are very pleased that after more than two months in trial, a jury of conscientious citizens quickly reached a unanimous decision in favor of  our Medical Properties Trust," Funk said after reflecting on the jury verdict.  "We said at the time this suit was filed that there was no merit to these allegations and that we would fight them to the end, and the jury's decision completely vindicated our client."

About Gray Reed & McGraw

Founded in 1985, Gray Reed & McGraw is a full-service, Texas based law firm with more than 90 lawyers practicing in Houston, Dallas and Tyler. Gray Reed & McGraw offers a wide range of legal services including business litigation, corporate transactions, oil & gas, tax planning and litigation, real estate, healthcare, trusts and estates, employment law, family law, and bankruptcy.  For more information, visit www.grayreed.com.

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