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Monday, February 27, 2006
Ind. Courts - More on: Doctors' non-compete challenge goes to jury
On Dec. 17, 2005 the ILB quoted from an Evansville Courier& Press story:
A trial wrapped up Friday in the case of two Evansville cardiologists suing their physicians' group to get out from under noncompete contracts they signed.Today, the same reporter, Bryan Corbin, writes:The judge could rule next month, and if he finds that the contracts are legally binding, then the two cardiologists could be forbidden from practicing medicine in the Tri-State area for two years. Dr. Ralph D. Millsaps, a cardiologist, and Dr. Julio A. Morera, a pediatric cardiologist, both resigned last month from Ohio Valley HeartCare Inc., which Millsaps had co-founded.
Both want to continue practicing in the Evansville area and treating their longtime patients, but contracts they signed in 1998 preclude them from working for Ohio Valley's competition for two years after leaving the physicians' group.
In a case that could have implications for doctors and patients statewide, two local cardiologists who sued their physicians' group are appealing a judge's ruling.The ILB would like to post a copy of Judge Trockman's opinion, but can't find a fax number or email for the judge or the Vanderburgh Superior Court.The cardiologists contend Indiana should prohibit noncompete agreements such as the ones they signed - an idea the judge suggested in his ruling.
Though Vanderburgh Superior Court Judge Wayne Trockman didn't rule in the cardiologists' favor, his decision questioned the wisdom of Indiana allowing noncompete agreements between doctors and their employers when other states prohibit such restrictive covenants.
Wednesday, the judge ruled against the plaintiffs, finding that Ohio Valley HeartCare Inc. could enforce the agreements that Dr. Ralph D. Millsaps and Dr. Julio A. Morera had signed, in which they agreed not to work for Ohio Valley's competitors for two years if they left.
The original noncompete agreements had forbidden Millsaps and Morera from practicing any form of medicine in a 31-county Tri-State area. The doctors, who resigned from Ohio Valley in November and have not treated patients since, sued to get out from under those agreements, contending the terms were overly broad and that their Evansville-area patients' care would suffer.
Though finding for Ohio Valley, Trockman significantly rolled back the noncompete restrictions, finding that Millsaps and Morera will be prohibited from practicing cardiology only in Vanderburgh, Posey, Gibson and Warrick counties, and in Henderson County, Ky., for two years. They still can practice their other disciplines. * * *
In his 17-page decision, Trockman noted that the American Medical Association opposes such noncompete agreements. "When restrictive covenants are enforced, they force discontinuity of care, and physician-patient relationships are involuntarily terminated," Trockman wrote. "The implications that flow from the disruption caused by enforcing covenants include increased costs of care, decreased quality of care and decreased patient satisfaction."
The judge added: "The time may have come for this state to review the merit of the AMA's declaration that restrictive covenants in physician contracts are contrary to public policy. Prohibiting such covenants may aid not only physician-employees but also their patients and society as a whole."
His decision quickly added that neither the Indiana appellate courts nor the legislature have adopted that view; and as a trial court judge, he is obligated to follow the law as written.
Posted by Marcia Oddi on February 27, 2006 08:18 AM
Posted to Ind. Trial Ct. Decisions