Profession
Ind. court: Breached contract invalidates noncompete clause
NEWS IN BRIEF — Posted June 11, 2007
Two Evansville, Ind., cardiologists can continue practicing in the area after an appeals court invalidated their noncompete contracts with their former employer.
The Indiana Appeals Court in April found that Ohio Valley HeartCare Inc. breached its agreements with the two doctors when it failed to provide timely and competent billing services, as their contracts required. The cardiologists resigned from the practice in 2005 over the billing disputes, but their contracts prevented them from practicing within a 31-county area for two years.
They sued Ohio Valley HeartCare, saying the noncompete agreements were not enforceable because of the clinic's actions. The appeals court agreed, saying the group neglected to collect $2 million in claims, forcing its physician shareholders to accept less pay for nearly two years.
Ohio Valley HeartCare did not return calls for comment on the ruling or whether it plans to appeal the ruling to the Indiana Supreme Court.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2007/06/11/prbf0611.htm.
