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Virtua Health Inc. has resolved its dispute with Trinity Health Corp. over a $12 million legal bill, reaching a settlement that ends claims the healthcare giant reneged on its obligation to cover counsel fees and related costs from a prior lawsuit, according to a New Jersey federal court order.

Chief U.S. District Judge Renee Marie Bumb signed off Wednesday on an order dismissing Virtua’s April 2024 suit against Trinity and Maxis Health System with prejudice. The court will retain jurisdiction solely to enforce the settlement, though the terms were not publicly disclosed.

The parties informed the court last week that a deal had been reached, according to Virtua’s notice of voluntary dismissal.

Dispute Over Indemnification

Virtua alleged that Trinity, parent company of Maxis — from which Virtua acquired Our Lady of Lourdes Health Care Services in 2019 — failed to pay legal costs stemming from a 2019 suit filed by Deborah Heart and Lung Center. Virtua claimed Trinity had an “unmistakable indemnification obligation” to cover the expenses.

The lawsuit arose from claims brought by Deborah Heart and Lung Center attempting to block Virtua’s acquisition of Lourdes. Virtua asserted that Trinity had agreed to indemnify it for contract and tort claims against Lourdes and Virtua. While the underlying case was settled in September 2023 for an undisclosed sum, Trinity reportedly refused to cover $11,772,335 in legal fees, expert costs, and other litigation expenses despite not objecting to the settlement or assuming Virtua’s defense.

Judge Bumb’s dismissal closes the chapter on the contentious billing dispute while leaving the court able to enforce compliance with the confidential settlement.

Virtua is represented by Seth Goldberg, Daniel E. Cohen, Deanna Koestel, and Yelena Yukhvid Levine of Pashman Stein Walder Hayden PC. Trinity Health and Maxis Health are represented by Mark Kasten of Buchanan Ingersoll & Rooney.