Jackson pharmacist Randy Guy was awarded $5.5 million in a suit against Rhode Island based drugstore chain, CVS for breach of contract and fraud.

The suit was heard in Clarke County Circuit Court in Grove Hill last week.

Jackson attorneys Mac and Gaines McCorquodale represented Guy, who owns and operates Mac's Drugs in Jackson.

Grove Hill attorney Ronnie Keahey and Birmingham attorneys Inge Johnstone and Steve Casey represented CVS. Ashlee Allard, an employee of CVS, was there to represent the company.

Thought contract was legitimate

"CVS set out to put Mac's Drugs out of business. First, they did it with a contract to buy Mac's Drugs, that was legitimate, or at least Randy Guy thought so," Gaines McCorquodale told jurors during closing arguments.

Guy had entered into a contract with CVS for the company to purchase his drugstore in July 2001 for $1.4 million. It was agreed that Mac's Drugs would close at the end of October 2001, once inventory had been completed by CVS and the final requirements of the contract filled.

The contract stated Guy was to submit a customer list and prescription files to CVS, get out of the lease he had for the building Mac's Drugs was in, sign over the store's telephone numbers and sign the bill of sale. Guy also agreed to a noncompete clause, which meant he could not open a business or work for a business that would compete with CVS in Jackson.

Apartial customer list was printed, but once it was realized how many names were included, the entire list was sent to the company on CD-ROM. The prescription list could not be turned over until an inventory by CVS was complete. The contract stated $500,000 would be paid for the customer and prescription list, but even though they had received the customer list, the money was not paid.

Guy was to work for CVS

Guy had also agreed to go to work at the Jackson CVS store.

In early October Guy signed over the telephone lines and signed a bill of sale.

According to Guy it had been agreed that the inventory would take place Oct. 26, but CVS never sent anyone to take inventory. A clause in the contract read that if either party wished to terminate the contract before inventory had been taken, then they had the right to do so, but Guy testified it had been implied to him that it meant if the inventory had not been taken due to illness or bad weather or other reasons, 'not just because they decided not to," he said.

Customer list not returned

When no one for CVS showed up to do inventory Guy contacted the McCorquodale law firm, who faxed and sent letters to the company reminding them of their obligation to complete the inventory.

Late on Oct. 31 Guy was notified that CVS was not going to purchase Mac's Drugs and his printed customer list was sent back to him, but the disk with 17,000 customer names and addresses, was not received.

Days before Guy was notified employees at CVS in Rhode Island, the Drug Enforcement Administration and the State Board of Pharmacy were notified that CVS was not purchasing Mac's Drugs.

Before Mac's was scheduled to close Danny Cottrell and Jim Justice, who own Family Pharmacy in Brewton, inquired about purchasing the shelves in Mac's and told Guy they planned to open a drug store in Jackson. They also found out he was out of his lease and leased the building where Mac's was located.

Guy told John Newman, of CVS, with whom he had been negotiating the contract, and Newman told him not to sell them the shelves and to try and get his lease back. Guy did not get the lease back because the building was already leased.

"CVS decided it would be better to compete with a new independent pharmacy than to compete with Mac's Drugs. The fact of the matter is that it was more important not to notify Randy Guy that the deal was off," Gaines McCorquodale told jurors.

If Guy had not found a place to take the controlled drugs that were part of Mac's inventory, he could have lost his pharmacy license and suffered other repercussions. He was however able to find a location in downtown Jackson, and spent that night moving there, where the store still operates.

Johnstone contended that even though the customer list was delivered,

there was no proof it had been used to try and take Guy's customers and since the prescription file had not been sent, then he wasn't owed anything for the list.

He also pointed out that none of Guy's inventory had been taken by CVS and he had actually made more money from selling it to his customers than he would have if CVS had purchased it.

Guy had testified that he was filling about 10,000 fewer prescriptions a year than he had been before his move, but the defense pointed out that he made more money after he moved and the reason he was filling fewer prescriptions could have been because there were now four pharmacies in Jackson instead of three.

Business not hurt, said lawyer

"Randy Guy is still competing, he still had his inventory and he is still filling prescriptions and making money. He is not entitled to be paid twice. Mr. Guy was not defrauded by CVS," Johnstone said.

Keahey pointed out that the inventory and prescription files were not to be transferred until the day of inventory and that if inventory had not been taken, then either party could terminate the contract. He reminded jurors that inventory had not been taken and nothing had been turned over to CVS but a customer list, and there was no proof the list had been used.

Keahey also noted that Guy had also begun negotiations to sell Mac's to Cottrell and Justice when it appeared CVS wasn't going to take inventory, but Guy chose to move rather than sell to them.

In his closing argument Mac McCorquodale told jurors that Guy was innocent and that made him vulnerable when dealing with CVS. He had not used the benefit of an attorney while negotiating the contract with CVS because he had trusted the company.

McCorquodale stated they were asking $1,989,000 for breach of contract, $500,000 for fraud because the company kept Guy's customer list and two to three times that amount for punitive damages.

"We think it is fair, that it is justice and it will change the course of conduct that is wrong. If it is not changed then someone like Randy Guy will be in this situation again," he concluded.

Jury out over an hour

The jury was out about an hourand a-half before returning with its verdict.

Guy was awarded $1.5 million for breach of contract, $1.5 million for fraud and $2.5 million for punitive damages for fraud.

A comment from Johnstone as he was leaving the courtroom indicated he thought CVS would want to appeal the verdict.

Gaines McCorquodale said, "Mac and I are gratified that Randy Guy finally got his opportunity to have his day in court. The jury was very attentive and conscientious in listening to all of the evidence and testimony.

"We are convinced that the jurors sent a powerful message to CVS in Rhode Island and others like them that they cannot treat people the way that Randy was treated."