Doctor sues medical practice

Sept. 02--A former Albuquerque physician once accused of sexual misconduct, including allegations that he improperly touched two female patients and exposed himself to workers at a fast-food drive-up window, has filed a breach of contract lawsuit against his former employer.

Dr. Dana Peterson, whose license to practice medicine in New Mexico has expired, was terminated from Southwest Medical Associates Inc. in Albuquerque in November 2008 after the alleged patient-touching incidents -- one involving a minor.

Court documents show that after an investigation by the New Mexico Medical Board, Peterson and the state board entered into an agreement requiring he have a chaperone present during all medical visits by females or minors.

That action led United Healthcare, which had contracted with Southwest Medical Associates, to terminate Peterson's privileges to treat its insured patients, court records show. Southwest then fired Peterson, a 16-year employee who was a family practice physician.

Peterson is suing to retain his stock in the corporation and is seeking monetary damages that include a productivity bonus.

He has denied any wrongdoing and there is no indication he was ever convicted of a crime in connection with the incidents.

Within two weeks of his termination in 2008, Peterson applied for disability benefits, listing his disabilities as a spine abnormality, severe stress and depression resulting from "legal issues in (his) life," according to a 2011 ruling in a related case filed in U.S. District Court in New Mexico.

Southwest Medical Associates filed a counterclaim contending that Peterson's actions damaged the medical corporation's reputation.

The corporation contends it also lost business income, saw its liability insurance increase, and incurred attorneys' fees to defend a civil lawsuit filed by one of Peterson's patients.

During the course of that lawsuit, the medical corporation contends, the patient's lawyers discovered that Peterson "had on multiple occasions been accused of, investigated for, and/or arrested for alleged inappropriate sexual conduct."

Peterson never informed his employer about the prior accusations, and Southwest Medical Associates had to confront him with the information, according to the company's filing.

On multiple occasions during his employment, the document alleges, Peterson "repeatedly and falsely represented ... that he had never been arrested, named as a criminal defendant or was investigated by a government agency."

Court records show Peterson denied those Southwest Medical Associates' allegations in the counterclaim.

The Journal reported in November 2008 that Albuquerque police reports showed Peterson was arrested and charged with the misdemeanor of indecent exposure at an amusement park while he was a student at the University of New Mexico medical school in 1983. Court records showing the disposition of the case have been destroyed.

In May 2002, police were summoned to the Golden Pride Chicken on Juan Tabo to investigate a man who allegedly had been exposing himself to employees at the drive-through window.

Police traced a license plate number provided by employees and found the vehicle was registered to Peterson, who said he frequented the restaurant but denied exposing himself. The police report didn't say what further action, if any, was taken by police.

The lawsuit filed by one of Peterson's patients just weeks before he was terminated accused him of professional misconduct. And it accused Southwest Medical Associates of negligent hiring and supervision. It wasn't clear last week how that case was resolved.

Peterson contends in his lawsuit against Southwest Medical that under his contract he should have been allowed to remain a corporate shareholder because he was "totally and permanently disabled prior to his termination."

Peterson also contends he is owed a "discretionary productivity bonus" and other compensation.

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