Alan Gardner v. Anesthesia & Pain Consultants, P.C.

CourtCourt of Appeals of Tennessee
DecidedNovember 30, 2004
DocketE2003-03027-COA-R3-CV
StatusPublished

This text of Alan Gardner v. Anesthesia & Pain Consultants, P.C. (Alan Gardner v. Anesthesia & Pain Consultants, P.C.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alan Gardner v. Anesthesia & Pain Consultants, P.C., (Tenn. Ct. App. 2004).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT KNOXVILLE September 20, 2004 Session

ALAN GARDNER v. ANESTHESIA & PAIN CONSULTANTS, P.C.

Appeal from the Chancery Court for Sullivan County No. 28472(L) Richard E. Ladd, Chancellor

No. E2003-03027-COA-R3-CV - FILED NOVEMBER 30, 2004

This appeal arises from the decision of Anesthesia & Pain Consultants, P.C. (“A&PC”) to terminate the employment of Dr. Alan Gardner. After A&PC fired Dr. Gardner, he brought this action alleging breach of employment contract, fraudulent and negligent misrepresentation, promissory estoppel, and promissory fraud. The trial court granted A&PC summary judgment on the misrepresentation claims. At the close of Dr. Gardner’s proof at trial, the trial court granted A&PC a directed verdict on his claims of breach of contract and promissory estoppel. The jury returned a verdict in favor of A&PC on the promissory fraud claim. We affirm the judgment of the trial court in all respects.

Tenn.R.Civ.P. 3 Appeal as of Right; Judgment of the Chancery Court Affirmed; Case Remanded

SHARON G. LEE, J., delivered the opinion of the court, in which HERSCHEL P. FRANKS, P.J. and CHARLES D. SUSANO , JR., J., joined.

Robert L. Arrington and Steven C. Huret, Kingsport, for Appellant Alan Gardner, M.D.

Frank A. Johnstone and Andrew T. Wampler, Kingsport, for Appellee Anesthesia and Pain Consultants, P.C.

OPINION

I. Factual Background

At all material times, the Defendant Anesthesia and Pain Consultants was a group of anesthesiologists practicing medicine in the tri-cities area of East Tennessee. In the fall of 1996, Plaintiff Dr. Gardner responded to A&PC’s advertisement seeking to hire an anesthesiologist. Dr. Gardner flew to Kingsport and interviewed with Dr. James Cottrell, who was then Defendant’s Vice President. Dr. Cottrell explained that A&PC had recently taken over a contract to provide anesthesiologists to Indian Path Hospital in Kingsport, and that A&PC was seeking someone to become the Chief of Anesthesiology at Indian Path. Dr. Gardner testified that Dr. Cottrell told him that there would definitely be a written employment contract governing the terms of this position.

Following the job interview, negotiations continued between Plaintiff and Defendant (through Dr. Cottrell) about employment terms. On November 25, 1996, Dr. Cottrell sent Dr. Gardner a letter stating the following:

Dear Alan, As proposed in our conversation of last evening, we are offering you a position at Indian Path Medical Center Hospital in Kingsport, TN. This offer includes six (6) months probationary period, at the end of which by mutual agreement will automatically continue (if neither party gives a thirty (30) day written notice) as the residual of our first year contract. We truly look forward to working with you and we are firmly committed to a long term relationship. Looking forward to hearing from you soon.

The six months’ probationary period was apparently due to some concern of A&PC’s doctors raised by Dr. Gardner’s letters of recommendation. Dr. Gardner testified that “there was some question about people skills and my, my willingness to compromise on certain issues. . .” Attached and included with this letter was a printed contract form styled “Employment Agreement[:] Non Shareholder Physician” which stated, among other things, that “the Employee hereby accepts such employment upon the terms and conditions specified in the Agreement” and provided terms on such items as employee’s duties, professional standards, compensation, term, restrictive covenants, and the like. The employment agreement, which contained signature lines at the end, provided under the “termination” section that either the employee or employer may terminate employment “without cause, upon thirty (30) days written notice” to the other.

On December 18, 1996, Dr. Cottrell sent Dr. Gardner the following letter:

Dear Alan, It is a pleasure to offer you employment in our practice. The group was impressed with you, your credentials and letters of reference. If these arrangements are acceptable to you we would desire you to start as soon as convenient.

Our offer to you is as follows: $150,000.00 annual for 1997 $170,000.00 annual for 1998 $3,000.00 CME $3,000.00 relocation expense $1,500.00 Medical and Dental reimbursement

-2- Other Benefits: Health Insurance Life Insurance Malpractice Insurance Pension Plan

A non-shareholder physician employment agreement, nearly identical to the first, but with some changes such as a $3,500 allowance for continuing medical expenses instead of the original $3,000 allowance, was included with the above letter. This agreement form included the same thirty days written notice for termination provision.

On December 20, 1996, Dr. Gardner sent Dr. Cottrell a handwritten letter that began by stating, “As you requested, I write to specify the modifications I would prefer in my proposed Employment Agreement with your group.” Dr. Gardner’s letter specified some seven requested amendments to the agreement, and requested clarification of other terms of employment about which he was apparently unsure. This letter included the following proposed amendments:

3. Amend 8-1-and 8-2 to provide for a progressive increase to six months notice requirement for termination by either party without cause over the first six months of employment – one month notice after one month employment, two months after two months employment . . .and six months notice after six months employment.

Further amend 8-2 to provide for employment at another Group work site, should the contract between IPH [Indian Path Hospital] and A[&]PC terminate.

* * *

Please include a clause at least anticipating, without committing, that I am being hired ultimately to be Chief of Anesthesiology at Indian Path after six months; and memorializing our discussions that I would receive at least a $20,000.00 pay increase plus an extra share of profit-sharing over-and-above what I would receive as a staff anesthesiologist.

We also need to discuss the discrepancy about pension participation you have discussed with me versus what your accountant says is allowable under the terms of your plan – this is a significant problem as it represents some $45,000.00 of compensation over the next 1½ years.

(Emphasis in original).

-3- On January 2, 1997, Dr. Gardner received a letter from A&PC’s president, Dr. Alan H. Pugh, which stated as follows:

Dear Dr. Gardner: Thank-you for your response to our employment offer. However, I regret to inform you that the corporation will not be able to grant your requested changes to the contract. I must temporarily suspend our offer pending a final recommendation from the Board. If you have other opportunities, please feel free to pursue them.

Dr. Gardner got on the telephone to Dr. Cottrell immediately after receiving the above letter, and he received another letter, dated the following day, January 3, 1997, stating:

Dear Dr. Gardner: Per our conversation of yesterday evening, we anticipate you working Monday January 6, 1997 pending outcome of contract negotiations. We will reimburse you as per the contract forward and provide malpractice insurance.

Dr. Gardner did begin work on January 6, 1997, and as the above letter anticipated, negotiations did continue on an employment agreement between the parties. The next letter from Dr. Cottrell to Dr. Gardner, dated January 13, 1997, stated as follows:

Dear Alan,

As per the accompanying letter the group is trying to come up with a fair common language contract for all our employed physicians, we feel this contract gives us a start. As per your memo of December 20, 1996 item

1. We will agree to that change. 2.

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Alan Gardner v. Anesthesia & Pain Consultants, P.C., Counsel Stack Legal Research, https://law.counselstack.com/opinion/alan-gardner-v-anesthesia-pain-consultants-pc-tennctapp-2004.