July 21, 2010

Dallas Court of Appeals Rules for Physicians in Dispute with Employer

Non-compete lawyer Keith Clouse notes that the Dallas Court of Appeals recently affirmed summary judgment for a group of physicians against their employer.



Dallas non-compete lawyer Keith Clouse notes that the Dallas Court of Appeals recently affirmed summary judgment for a group of physicians against their employer.  Greenville Surgery Center, Ltd. v. Beebe, No. 05-08-01045-CV (Tex. App.—Dallas July 9, 2010), available at http://www.5thcoa.courts.state.tx.us/cgi-bin/as_web.exe?c05topin.ask+D+59681.

GSC owns an ophthalmology surgery center. A group of doctors invested in GSC as limited partners.  The limited partnership agreement contained a covenant not to compete forbidding the doctors from competing with GSC for two years post-termination.  In 2008, nine limited partners planned to open a new facility and filed suit, seeking a declaration that the covenant not to compete was unenforceable.  GSC counterclaimed for breach of contract.  The trial court granted summary judgment for the doctors.

Under the Texas non-compete statute, a covenant not to compete cannot be enforced against a person licensed as a physician unless it contains a buy-out provision.  Here, the covenant contained no buy-out provision, and, therefore, it was unenforceable against the doctors.  The Court thus affirmed the judgment of the trial court.

Keith Clouse litigates non-compete issues on behalf of physicians.  To speak to Mr. Clouse about a non-compete agreement, contact the employment lawyers at Clouse Dunn Khoshbin LLP at info@cdklawyers.com


Source: Story.KISSPR.com
Release ID: 8832