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Tuesday, March 21, 2006

Ind. Decisions - Cardiologists post appeal bond to resume practice during appeal

"Cardiologists post appeal bond to resume practice during appeal" is the headline to a story by Bryan Crobin in today's Evansville Courier& Press. Some quotes:

Two local cardiologists are posting a combined $900,000 as an appeal bond so they can resume practicing cardiology and compete directly against their former employer.

Dr. Ralph D. Millsaps has to post approximately $700,000 and Dr. Julio A. Morera approximately $200,000 while they appeal the verdict in their lawsuit to the Indiana Court of Appeals.

Millsaps and Morera sued their former physicians' group, Ohio Valley HeartCare, to get out from under a restrictive noncompete deal they signed in their employment contracts in 1998. The arrangement precluded either physician from working for Ohio Valley's competition and prohibited them from practicing any form of medicine in the 31-county Tri-State area for two years after they resigned from Ohio Valley. * * *

Deciding the cardiologists' lawsuit last month, Vanderburgh Superior Court Judge Wayne Trockman ruled in Ohio Valley's favor, concluding it could enforce noncompete clauses. But finding the restrictions were overbroad, Trockman rolled them back significantly. He allowed Millsaps and Morera to resume practicing other medical disciplines for which they are certified and allowed them to practice cardiology anywhere except Vanderburgh County and four surrounding counties. The restrictions last for two years.

But Millsaps and Morera, who wanted to practice cardiology in Evansville unfettered by geographic restrictions, were unhappy with the judge's ruling and are appealing it. On Friday, Trockman denied their request to halt enforcement of his ruling while it is on appeal. But he did allow them to resume practicing cardiology in Evansville and compete against their ex-employer - if they post appeal bonds while waiting for the appellate court to rule, which could take six to nine months.

The amounts they must post are equivalent to "liquidated damages" the doctors would have had to pay Ohio Valley under buyout provisions of their contracts, to compensate Ohio Valley for its anticipated loss of revenue after they left. Obtained through a letter of credit from a local bank, the funds will be in escrow until appeals are exhausted, plaintiffs' attorney Patrick Shoulders said.

If the doctors win their appeal, the funds might be returned; but if Ohio Valley wins the appeal, it might keep the funds. Ultimately, the judge will decide the fate of the appeal bonds, the ruling Friday said.

For background on this case, start with this Feb. 28th ILB entry.

Posted by Marcia Oddi on March 21, 2006 08:44 AM
Posted to Ind. Trial Ct. Decisions