James Dustin Chaney v. Cvs Pharmacy, Inc.

CourtCourt of Appeals of Kentucky
DecidedApril 24, 2026
Docket2024-CA-0962
StatusPublished

This text of James Dustin Chaney v. Cvs Pharmacy, Inc. (James Dustin Chaney v. Cvs Pharmacy, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James Dustin Chaney v. Cvs Pharmacy, Inc., (Ky. Ct. App. 2026).

Opinion

RENDERED: APRIL 24, 2026; 10:00 A.M. TO BE PUBLISHED

Commonwealth of Kentucky Court of Appeals

NO. 2024-CA-0798-MR

CVS PHARMACY, INC. APPELLANT

APPEAL FROM PERRY CIRCUIT COURT v. HONORABLE ALISON C. WELLS, JUDGE ACTION NO. 15-CI-00115

JAMES DUSTIN CHANEY, D.O. AND RITE AID OF KENTUCKY, INC. APPELLEES

AND

NO. 2024-CA-0962-MR

JAMES DUSTIN CHANEY CROSS-APPELLANT

CROSS-APPEAL FROM PERRY CIRCUIT COURT v. HONORABLE ALISON C. WELLS, JUDGE ACTION NO. 15-CI-00115

CVS PHARMACY, INC. CROSS-APPELLEE OPINION REVERSING AND REMANDING AS TO APPEAL NO. 2024-CA-0798-MR AND DISMISSING AS TO CROSS-APPEAL NO. 2024-CA-0962-MR

** ** ** ** **

BEFORE: CETRULO, L. JONES, AND MCNEILL, JUDGES.

MCNEILL, JUDGE: Following a jury trial in which the jury found in favor of

James Dustin Chaney, D.O. (“Chaney”) on his negligence and false light claims

against CVS Pharmacy, Inc. (“CVS”), the Perry Circuit Court entered a judgment

against CVS in the amount of $7,560,000.00, which was later reduced to

$2,160,000.00. CVS appeals, arguing it was entitled to a directed verdict on

Chaney’s claims. Chaney cross-appeals the reduction of his damage award.

Because we find that the trial court erred in denying CVS’s motion for a directed

verdict, we reverse the circuit court’s judgment and dismiss Chaney’s cross-appeal

as moot.

BACKGROUND

Chaney is a former practicing physician from Eastern Kentucky. In

2011, the Kentucky Board of Medical Licensure (“KBML”) began investigating

Chaney’s prescribing habits for controlled substances. Based upon Chaney’s

-2- KASPER1 data, KBML pharmacy consultant Chris Johnson identified sixteen of

Chaney’s patients based on “age, addictive drug combinations, distance traveled to

the pharmacy, polypharmacy, duplicate refills, and similar last names” and

recommended further investigation by the KBML. A physician consultant

reviewed the sixteen patient charts and found that Chaney’s care fell below the

acceptable standard in eleven charts regarding diagnosis, in ten regarding

treatment, and in four regarding recordkeeping. The consultant also found that

Chaney had demonstrated gross negligence in ten of the patient charts reviewed.

On December 12, 2012, the KBML and Chaney entered into an agreed order,

which found that Chaney had violated KRS2 311.595 and KRS 311.597 and

required, among other things, that Chaney keep a controlled substances log and

complete further training on prescribing controlled substances.

Contemporaneous with the KBML investigation, state and federal law

enforcement were looking into Chaney’s pain management clinic, Clarion. In

2015, Chaney was federally indicted on multiple charges in connection with his

ownership of Clarion, including conspiracy to distribute and dispense controlled

substances unlawfully. Ultimately, Chaney pled guilty to one count of conspiracy

1 The Kentucky All Schedule Prescription Electronic Reporting (“KASPER”) System is an electronic system established by Kentucky Revised Statutes (“KRS”) 218A.202 to monitor prescriptions of controlled substances. 2 Kentucky Revised Statutes.

-3- to commit money laundering and was sentenced to thirty months in federal prison.

Based upon his conviction, Chaney agreed to surrender his medical license in lieu

of revocation.

Amid the federal prosecution, Chaney learned that CVS had filled

prescriptions under his Drug Enforcement Administration (“DEA”) number that he

did not write. Chaney contacted CVS and requested that they perform an audit of

all prescriptions written by Chaney and two other physicians with the same last

name, James “Ace” Chaney (Chaney’s uncle), and George Chaney (apparently

unrelated). As a result of their investigation, CVS identified 101 prescriptions that

had been falsely attributed to Chaney in KASPER.

In March of 2015, Chaney filed a lawsuit against CVS in Perry Circuit

Court, alleging that CVS was negligent in misattributing prescriptions to Chaney

written by other medical providers and then reporting those misattributions to

KASPER.3 The lawsuit further alleged that CVS’s negligence caused Chaney to

be investigated by the KBML and state and federal authorities, to be indicted, and

to lose his license. An amended complaint later added a false light claim. Chaney

sought damages for emotional pain and suffering and impairment of his ability to

earn income.

3 The lawsuit also named Rite Aid, local pharmacy R/X Discount Co., several CVS and Rite Aid pharmacists, and some John Does.

-4- Following a jury trial, the jury found in Chaney’s favor and awarded

$7,560,000.00 in damages, which was later reduced to $2,160,000.00. This appeal

and cross-appeal followed.

STANDARD OF REVIEW

CVS argues the trial court erred in denying their motion for a directed

verdict on Chaney’s negligence and false light claims. “Upon review of the

evidence supporting a judgment entered upon a jury verdict, the role of an

appellate court is limited to determining whether the trial court erred in failing to

grant the motion for directed verdict.” Lewis v. Bledsoe Surface Min. Co., 798

S.W.2d 459, 461 (Ky. 1990). A motion for directed verdict “raises only questions

of law as to whether there is any evidence to support a verdict.” Harris v. Cozatt,

Inc., 427 S.W.2d 574, 575 (Ky. 1968) (emphasis added). “[A] trial judge cannot

enter a directed verdict unless there is a complete absence of proof on a material

issue or if no disputed issues of fact exist upon which reasonable minds could

differ.” Bierman v. Klapheke, 967 S.W.2d 16, 18–19 (Ky. 1998) (citation

omitted).

“All evidence which favors the prevailing party must be taken as true

and . . . [t]he prevailing party is entitled to all reasonable inferences which may be

drawn from the evidence.” Lewis, 798 S.W.2d at 461. “[A] directed verdict is

appropriate where there is no evidence of probative value to support an opposite

-5- result because [t]he jury may not be permitted to reach a verdict upon speculation

or conjecture.” Toler v. Süd–Chemie, Inc., 458 S.W.3d 276, 285 (Ky. 2014), as

corrected (Apr. 7, 2015) (internal quotation marks and citation omitted). Finally,

“[a]ppellate review of the trial court’s denial of a motion for directed verdict is not

limited to evaluating the reasons proffered by the trial court for its denial.”

Louisville Metro Government v. Ward, 610 S.W.3d 295, 307 (Ky. App. 2020).

“Rather, we must make our own review of the entire record to determine whether

the trial court’s ruling was clearly erroneous.” Brooks v. Lexington-Fayette Urban

Cnty. Housing Auth., 132 S.W.3d 790, 798 (Ky. 2004).

ANALYSIS

As to Chaney’s negligence claim, CVS contends it was entitled to a

directed verdict because Chaney failed to prove that its negligence was the cause of

his injuries. “The elements of a negligence claim are (1) a legally-cognizable duty,

(2) a breach of that duty, (3) causation linking the breach to an injury, and

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