Rismed Oncology Systems, Inc. v. Daniel Esgardo Rangel Baron

638 F. App'x 800
CourtCourt of Appeals for the Eleventh Circuit
DecidedJuly 17, 2015
Docket14-15567
StatusUnpublished
Cited by6 cases

This text of 638 F. App'x 800 (Rismed Oncology Systems, Inc. v. Daniel Esgardo Rangel Baron) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rismed Oncology Systems, Inc. v. Daniel Esgardo Rangel Baron, 638 F. App'x 800 (11th Cir. 2015).

Opinion

PER CURIAM:

This appeal arises from frauds allegedly committed by Defendants, and comes to us following the district court’s denial of Plaintiffs motions for relief from the voluntary dismissal of its complaint. Upon review of the record and the parties’ briefs, we AFFIRM for the reasons set forth below.

I. BACKGROUND 1

After spending a decade working on the Space Shuttle program in Huntsville, Alabama, thermodynamics engineer José A. Rodriguez (“Rodriguez”) decided he wanted to pursue a long-held interest in business. So in 1990, at the urging of a friend, Rodriguez formed and incorporated Rismed Oncology Systems, Inc. (“Rismed Oncology” or “Rismed”) to “suppl[y] medical equipment to Latin America, principally Venezuela.”

A number of years later, sensing a demand from his customers for dialysis supplies, Rodriguez developed an expertise in the area and “began marketing dialysis sales through” Rismed Oncology. Over a five year span, from 1999 to 2004, Rodriguez made “several attempts to break into the dialysis business in Venezuela[,]” with the ultimate aim of becoming the sole supplier of dialysis products to the Instituto Venezolano de los Seguros Sociales (“IVSS”)—the Venezuelan equivalent of the United States Social Security Administration. He eventually found success: IVSS placed an order with Rismed Oncology for over 350,000 dialysis kits, paying the corporation $13.7 million between March and August 2005. Sales representative Daniel Esgardo Rangel Baron (“Rangel Baron”)—the biological father of Rodriguez’s stepson, the ex-husband of his wife, and a resident of Caracas—was put in charge of the account.

IVSS appeared satisfied with Rismed Oncology, as it placed a second order with the corporation, this time representing 100% of its dialysis supplies needs. 2 But sometime in late 2005 and early 2006, Ran-gel Baron made a series of troubling representations to Rodriguez about the order: first, that the Venezuelan government was postponing it; second, that it “was ‘being processed’” and should arrive “sometime during the fourth quarter of 2005”; and finally, that it had been cancelled. Rather than proceed with Rismed, Rangel Baron informed Rodriguez that IVSS had decided to award the purchase order to “Continental”—a medical supply company that Ran-gel Baron had allegedly formed with his biological son, Daniel Alberto Rangel Di Nardo (“Daniel Rangel”), whom Rodriguez had raised since Daniel was thirteen.

Or so Rangel Baron said. What actually happened, Rodriguez learned, was that Rangel Baron directed the incorporation of a number of companies in a number of locations, all called Rismed Dialysis Systems, Inc. Specifically, Rangel Baron and his sister, Isabel Rangel Baron, incorpo *802 rated a Rismed Dialysis Systems in Venezuela (“Rismed Dialysis Venezuela”); Daniel Rangel incorporated a Rismed Dialysis Systems in Alabama (“Rismed Dialysis Alabama”); Rangel Baron, under Daniel Rangel’s name, incorporated a Rismed Dialysis Systems in Florida (“Rismed Dialysis Florida”); and Rangel Baron and partner Orlando Araya Amador incorporated a Rismed Dialysis Systems in San Jose, Costa Rica (“Rismed Costa Rica”).

The ramifications of Rangel Baron’s creation of these Rismed Dialysis companies is two-fold. First, while Rodriguez had incorporated his company as Rismed Oncology and operated its oncology business under that name, he actually conducted Rismed’s dialysis business under the trade name “Rismed Dialysis Systems.” This trade name was emblazoned on all of Rismed’s dialysis products, and it was the name by which Rismed’s vendors knew the company. Second, when IVSS paid an invoice to Rismed Oncology, it simply made the payment out to “Rismed.” 3

Given the above, it should come as no surprise that IVSS never cancelled its second order for dialysis supplies from Rismed Oncology, but “continued to make purchase orders for the dialysis kits under the contract trade name ‘RISMED,’ ” and did so through at least February 2013. In short, if Plaintiffs allegations are accurate, Rangel Baron orchestrated a scheme whereby he usurped Rismed Oncology’s contract with IVSS by utilizing the same products, supplies, and company name that had for years been used by Rismed. Ran-gel Baron concealed this scheme from Rodriguez and explained his new-found wealth by claiming that IVSS had can-celled its contract with Rismed Oncology and had awarded it instead to his father-son corporation, Continental. Rangel Baron fooled IVSS by convincing it to change the routing numbers for bank accounts to which it wired payments to those he established in connection with each Rismed Dialysis company he had formed. (He had previously failed to persuade IVSS to change the name of the contract award from Rismed Oncology to Continental.) And he pulled the wool over the eyes of Rismed’s vendors by incorporating his companies under Rismed’s trade name.

Thus, to the outside world it seemed that the only thing different about IVSS’s subsequent orders was the routing information for payments. But really, Rangel Baron had siphoned away roughly $50 million worth of business from Rismed Oncology and Rodriguez: his employer and the man who had raised his son.

Rodriguez learned of Rangel Baron’s scheme in July 2012 and when seven months of “efforts to avoid a lawsuit” failed, he filed suit in the Northern District of Alabama on behalf of Rismed Oncology. The complaint alleged three federal RICO claims and two state law fraud claims against Rangel Baron; Isabel Ran-gel Baron; Rismed Dialysis Venezuela (the “Foreign Defendants”); and Rismed Dialysis Alabama and Rismed Dialysis Florida (the “Domestic Defendants”).

Almost immediately after Rodriguez filed the lawsuit, he was contacted by a minister, Daniel Garlick (“Garlick”), with whom he and Daniel Rangel were close. Garlick impressed upon Rodriguez that litigation would be a treacherous path, detrimental to' his family and faith, and that instead he should engage in Christian mediation with Daniel Rangel to work through the dispute. Rodriguez agreed, and he and Garlick traveled to Miami to “resolve the lawsuit and the underlying disagreements.”

*803 With Garlick acting as mediator, Rodriguez and Daniel Rangel ironed out their differences over the course of an extended lunch. Afterward, Garlick drafted a document that the parties refer to as the “Miami Agreement[,]” which outlined their basic obligations to one another. Generally, Rodriguez agreed to “[i]rrevocably [c]lose[ ]” Rismed’s lawsuit and give Daniel Rangel an ownership interest in a side business, while Daniel Rangel agreed to provide capital to that company and to give Rodriguez an ownership position in his own side business. Both Rodriguez and Daniel Rangel signed the Miami Agreement on March 28, 2013.

Next, the parties’ attorneys set to work drafting a settlement agreement. The document they created more or less provided that the parties would release any claims they may have had as a result of the IVSS imbroglio and that Rodriguez would transfer shares in his side business to Daniel Rangel. Notably, however, the Settlement Agreement did not incorporate every obligation outlined in the Miami Agreement.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
638 F. App'x 800, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rismed-oncology-systems-inc-v-daniel-esgardo-rangel-baron-ca11-2015.