Gordon Grado, M.D., et al. v. Medical, Industrial, and Scientific Products Corporation, et al.

CourtDistrict Court, S.D. Ohio
DecidedMay 7, 2026
Docket1:24-cv-00158
StatusUnknown

This text of Gordon Grado, M.D., et al. v. Medical, Industrial, and Scientific Products Corporation, et al. (Gordon Grado, M.D., et al. v. Medical, Industrial, and Scientific Products Corporation, et al.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gordon Grado, M.D., et al. v. Medical, Industrial, and Scientific Products Corporation, et al., (S.D. Ohio 2026).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF OHIO WESTERN DIVISION

GORDON GRADO, M.D., et al.,

Plaintiffs, Case No. 1:24-cv-158 v. JUDGE DOUGLAS R. COLE MEDICAL, INDUSTRIAL, AND SCIENTIFIC PRODUCTS CORPORATION, et al.,

Defendants. OPINION AND ORDER This action is more than two years old. But it has not yet proceeded beyond the pleading stage. The delay largely resulted because two defendants, Jose Rodriguez and the company he owns—Medical, Industrial, and Scientific Products Corporation (MIS)—have refused to participate in the litigation. Now, Plaintiffs Gordon Grado, M.D., and the company he owns—Centro de Especialidad Oncologica (CdEO)—move for default judgment against MIS. (Doc. 50). Plaintiffs also move, in response to Rodriguez’s recent failure to appear at a status conference, for the Court to sanction Rodriguez himself with an entry of default. (Doc. 55). But that’s not all. A third group, Defendants/Cross-Claimants Suleiman A. Refaei and the company he owns—Jordan Medical Group, LLC (JMG)—also move for default judgment against both Rodriguez and MIS. (Doc. 53). Nor is that all that is hanging over Rodriguez’s head. After he failed to appear at the October 16, 2025, in-person hearing, the Court issued a show cause order that Rodriguez demonstrate good cause, in writing, why he should not be sanctioned with a default judgment. (10/31/25 Not. Order). For his part, while the two motions for default judgment (and the show cause

order) were pending, Rodriguez submitted three filings: exhibits, a response, and an objection. (Docs. 54, 56, 59). That led to Plaintiffs moving for clarification on the Court’s show cause order, (Doc. 57), and Cross-Claimants moving to strike Rodriguez’s final objection, (Doc. 60). The Court addresses the whole mess in greater detail below. But, at bottom, Rodriguez and MIS have failed to plead or otherwise defend the claims brought against them. See Fed. R. Civ. P. 55(a). Rodriguez’s most recent flurry of filings does

not change that. So, the Court GRANTS Plaintiffs’ Motion for Sanctions (Doc. 55) and DIRECTS the Clerk to enter default against Jose Rodriguez as to Plaintiffs’ claims against him. Given that default, along with the earlier entry of default against MIS, the Court treats Plaintiffs’ Motion for Default Judgment (Doc. 50) as directed at both Rodriguez and MIS. Ultimately, the Court GRANTS IN PART Plaintiffs’ Motion for Default Judgment (Doc. 50) and conditionally ENTERS JUDGMENT for

an amount to be determined at a later date. Similarly, the Court GRANTS IN PART Cross-Claimants’ Motion for Default Judgment against Rodriguez and MIS (Doc. 53) and conditionally ENTERS JUDGMENT for an amount to be determined at a later date. Finally, the Court DENIES both Plaintiffs’ Motion to Clarify Order to Show Cause (Doc. 57) and Cross-Claimants’ Motion to Strike (Doc. 60) as MOOT. BACKGROUND This case involves a dispute between three sets of parties, with each of the three sets consisting of an individual and an entity that the individual owns.1 Now, two of those groups, Grado and Rafaei and their respective companies, seek default

judgment against the third, Rodriguez and his company. (Docs. 50, 53). While the Court recounted some of Plaintiffs’ allegations in its previous Opinions, (see Docs. 33, 43), it now does so in a slightly different posture (and adds Cross-Claimants’ allegations). That is because when considering a motion for default judgment, the Court accepts as true all well-pleaded allegations, except those relating to the amount of damages. See In re Cook, 342 B.R. 384, 2006 WL 908600, at *3 (B.A.P. 6th Cir. Apr.

3, 2006) (Table) (citations omitted). So, this time, the Court’s summary of the factual background rests on the now-admitted allegations in Plaintiffs’ Amended Complaint (Doc. 11), as well as those in Cross-Claimants’ Answer (Doc. 36). After summarizing the parties’ allegations below, the Court then recounts some of this case’s long and winding procedural history.

A. Plaintiffs’ Allegations. At its core, this case arises out of the efforts by Dr. Grado and his company to acquire a linear accelerator machine (LINAC) for their oncology clinic in

1 The three individuals are Gordon Grado, M.D., Jose Rodriguez, and Suleiman A. Refaei. Grado owns Centro de Especialidad Oncologica. Rodriguez owns Medical, Industrial, and Scientific Products Corporation. And Refaei owns Jordan Medical Group, LLC. In its recounting of the Background, the Court largely mirrors how the Amended Complaint and Answer refer to the parties. But the Court notes that each individuals’ actions are also generally attributable to his respective corporate identity, and vice versa. Aguascalientes, Mexico. (See generally Doc. 11). Rodriguez offered to help in that endeavor, claiming that he had in his possession just such a device. (Id. at #75). Indeed, “Rodriguez, personally and [on] behalf of MIS” told Grado and CdEO that

“MIS owned title” and possessed a LINAC available “for immediate sale.”2 (Id.). Relying on those representations (which later proved false), Grado personally executed a purchase agreement with MIS on June 5, 2020, agreeing to purchase the LINAC for $145,000.3 (Id.; Purchase Agreement, Doc. 11-1, #90–92).4 Grado planned to then transfer ownership of the LINAC from himself to CdEO (his company), and CdEO would use it to replace a broken machine at the clinic. (See Doc. 11, #78). But his plan quickly hit a snag. That’s because, even though Grado had paid

in full, Rodriguez and MIS never delivered the LINAC. (Id. at #75–77). Indeed, it turns out that Rodriguez and MIS never even had one. (Id. at #76). Rather, Refaei and JMG did. (Id.). Without Grado’s knowledge or consent, Rodriguez planned to take the money he received from Grado, transfer it to JMG to purchase JMG’s LINAC, and then arrange delivery of the machine to CdEO with Grado none the wiser. (Id. at #76– 77).

2 Rodriguez made other representations as well. For example, that the LINAC had been “inspected,” de-installed correctly, and “properly stored.” (Doc. 11, #75). 3 Rodriguez and MIS accepted that payment and then transferred some or all of it to Refaei and JMG. (Doc. 11, #77). Grado also ended up paying $4,000 in storage fees. (Id. at #75). 4 The Court may rely on the Purchase Agreement, as well as the Sale Agreement and Third- Party Beneficiary Agreement described below. That’s because (1) they are written instruments that are referenced and attached to the Amended Complaint, and (2) they serve as the basis for Plaintiffs’ claims. Anderson v. ABF Freight Sys., Inc., No. 1:23-cv-278, 2024 WL 51255, at *1 n.3 (S.D. Ohio Jan. 4, 2024); Fed. R. Civ. P. 10(c). The Amended Complaint also suggests why Rodriguez may have engaged in this game of smoke and mirrors. Apparently, Grado had dealt with Refaei and JMG once before to procure medical equipment (according to Cross-Claimants, another

LINAC, (Doc. 36, #287)). (Doc. 11, #76). That transaction went poorly. So Grado “determine[d] that he would never engage in dealings [with them] again.” (Id.). As a result, when Grado sought out Rodriguez and MIS to procure the LINAC, he specifically told them that “he would not do business with Refaei or JMG.” (Id.). That presumably led to Rodriguez declining to reveal how he intended to source the LINAC he had promised to Grado. As this recounting should make clear, the Court is not suggesting that

Rodriguez and MIS never intended to deliver a LINAC to Grado. In fact, Rodriguez and MIS entered into two agreements with Refaei and JMG in an effort to do just that: a Sale Agreement, (Doc. 11-2), and a Third-Party Beneficiary Agreement, (Doc.

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