A Hermitage doctor involved in the largest jury award ever given in Mercer County filed for bankruptcy on Friday.

Dr. John P. Gallagher filed voluntary Chapter 11 bankruptcy on Friday in Western Pennsylvania District Bankruptcy Court in Pittsburgh. In addition, his practice, Shenango Valley Obstetrics/Gynecology Associates also filed bankruptcy, court documents show.

Under Chapter 11, a business, such as a doctor's practice, can continue operating while its assets are protected by the court. A bankruptcy also hinders certain legal action, such as the seizure of assets stemming from a jury award.

Gallagher referred any comments to his attorneys.

Michael Barr, a Hermitage lawyer who said he represents Gallagher on certain legal matters, acknowledged the doctor and his practice filed for bankruptcy. He also said Gallagher was the only shareholder of the practice.

"The reason he filed Chapter 11 is so he can continue to serve his patients,'' Barr said. "As you know, Chapter 11 is a reorganization and it allows him to do that and allows him to maintain his practice and serve clients as if he hadn't filed.''

Barr acknowledged the primary reason for the bankruptcy was to forestall proceedings against Gallagher's assets as a result of the April jury award.

Gallagher was part of a $12.8 million malpractice verdict awarded to Marie Anne Viola and her husband, Joseph, of Hermitage. The couple sued Gallagher and Dr. John C. Garriott of Holt, Allen and Garriott Radiology Associates.

The suit claimed, among other things, that Gallagher failed to "timely and properly'' evaluate and treat Mrs. Viola for breast cancer and that Garriott didn't notice a lesion on Mrs. Viola's 1996 mammogram she had at the hospital of Sharon Regional Health System. If the lesion had been recognized in the mammogram and properly treated, according to the suit, Mrs. Viola's cancer would not have spread to other parts of her body, including her liver.

The jury found both Gallagher and Garriott were negligent and their negligence was a substantial factor in Mrs. Viola's advanced cancer. Also, the jury found Sharon Regional was responsible as an "ostensible agency.''

In assigning a percentage of negligence, the jury found Garriott and the hospital jointly 72 percent negligent and Gallagher, 28 percent responsible. With interest, the award now stands at more than $13.9 million, court documents said.

Barr said Gallagher's bankruptcy was prompted by the award, his insurance carrier also filing for bankruptcy, an inability to reach an out-of-court settlement with the Violas and other factors.

Neal Rosen, a Pittsburgh lawyer representing the Violas, took a swipe at Gallagher by saying he "ran scared'' to bankruptcy court.

"He's seeking refuge at this point and time with the bankruptcy court,'' Rosen said. "This isn't the first case I've had against Dr. Gallagher for failing to diagnose breast cancer. It's a matter of public record that I've handled numerous cases against Dr. Gallagher for failing to properly diagnose breast cancer.''

Barr responded to Rosen's comments by saying Gallagher continues to see many patients at his practice.

"His concern is his ability to provide services to those patients,'' Barr said.

Previously, Rosen said Mrs. Violas had received some money as a result of the verdict on behalf of Garriott but declined to say how much or the source of those funds.

In a related matter, Rosen said Sharon Regional's attorneys and managers met Friday in his Pittsburgh office to discuss a settlement. He added the nonprofit health-care provider was "making every effort'' to comply with Judge Michael Wherry's ruling on posting a bond.

"I have the right to pursue various avenues against them (Sharon Regional) at this time,'' Rosen said. "The Violas and I have both decided that we are not going to pursue any additional actions at this time, such as the seizure of assets, pending the effort on behalf of Sharon Regional to resolve the matter.''

Sharon Regional's attorney, its spokesman and managers were out of the office Friday. Messages left at their offices were not returned.

Sharon Regional's insurer, National Union Fire Insurance Co., Pittsburgh, is balking at paying the hospital's portion of the award. The company sued Sharon Regional, saying the hospital didn't properly notify it about the malpractice case. But Sharon Regional contends the insurer was promptly notified and expects the company to pay if necessary.