Alvarez v. Rendon

953 So. 2d 702, 2007 WL 1010297
CourtDistrict Court of Appeal of Florida
DecidedApril 5, 2007
Docket5D05-4361
StatusPublished
Cited by29 cases

This text of 953 So. 2d 702 (Alvarez v. Rendon) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alvarez v. Rendon, 953 So. 2d 702, 2007 WL 1010297 (Fla. Ct. App. 2007).

Opinion

953 So.2d 702 (2007)

Marcelino L. ALVAREZ, M.D., Appellant/Cross-Appellee,
v.
Susan M. RENDON, M.D., Individually, et al., Appellee/Cross-Appellant.

No. 5D05-4361.

District Court of Appeal of Florida, Fifth District.

April 5, 2007.

*704 Darryl M. Bloodworth and Nichole M. Mooney, of Dean, Mead, Egerton, Bloodworth, Capouano & Bozarth, P.A., Orlando, for Appellant/Cross-Appellee.

William G. Osborne, of William G. Osborne, P.A., Orlando, and Barry Burnette, of Keedy & Burnette, P.A., Tavares, for Appellee/Cross-Appellant.

GRIFFIN, J.

Dr. Marcelino L. Alvarez ["Dr. Alvarez"] appeals the Final Judgment awarding Pathology Medical Laboratories, P.A. ["PML"] a net judgment of $602,970.48.[1]*705 We conclude that the trial court erred in refusing to order a new trial and reverse.

In 2001, Drs. Alvarez and Rendon formed PML, a professional association, for the purpose of practicing medicine in the field of pathology. Dr. Rendon owns 51% of PML's outstanding shares, and Dr. Alvarez owns the remaining 49% of shares. After the company was formed, Dr. Alvarez executed an employment agreement with PML. Under the terms of this agreement, PML could terminate Dr. Alvarez with or without cause. The contract enumerates the events that may give rise to "for cause" termination. The agreement also provides that, if PML terminates Dr. Alvarez "without cause," PML would have to give Dr. Alvarez sixty days' written notice and provide Dr. Alvarez his basic compensation during the period.

Subsequently, Dr. Alvarez, Dr. Rendon, and PML entered into a Buy-Sell Agreement. Under the terms of the Buy-Sell Agreement, if the employment of a share-holding employee ended for any reason, PML had the right to purchase the employee's stock for a specified price. The price at which PML would have to pay to purchase the departing employee's shares depended on the reason for the termination of employment. If the employee ended his employment voluntarily or was terminated for cause, the purchase price would be $500 per share. If the employee's employment was terminated by PML without cause, PML or the remaining shareholders would have to pay $1,000 per share to purchase the shares. The Buy-Sell Agreement included a non-compete provision that would become effective upon redemption of the shares.

In a letter dated October 31, 2003, Dr. Rendon, ostensibly acting in her capacity as president of PML, terminated Dr. Alvarez' employment "for cause" under the terms of his employment agreement. Further, the termination letter stated that PML was electing to purchase Dr. Alvarez' 490 shares in the company under the terms of the Buy-Sell Agreement. Subsequently, PML attempted to begin making payments to purchase Dr. Alvarez' 490 shares for $245,000. However, Dr. Alvarez declined to sell his PML shares for $245,000, asserting that he was improperly terminated "for cause" and, thus, was entitled to $490,000 for his stock.

After Dr. Alvarez left PML, he began working as an independent contractor with Broward Medical Laboratories ["BML"], which is located in South Florida. BML collects tissue samples from all parts of Florida, including the geographic area specified in the non-compete. The collected samples are sent to BML and processed into slides. Under his relationship with BML, Dr. Alvarez then would receive slides from BML, read them, interpret them, and create a written report containing his diagnosis. Dr. Alvarez performed this work for BML either in his home or at the offices of BML, both of which are located outside the geographic region encompassed in the non-compete. After PML terminated his employment, Dr. Alvarez called some of PML's clients to see if they would be interested in his continued services. Of the BML clients located in Lake County for whom Dr. Alvarez subsequently read slides, most were former PML clients.

In his Second Amended Complaint, Dr. Alvarez brought three claims. First, Dr. Alvarez claimed that PML breached his employment contract by improperly terminating him for cause and improperly reducing his salary prior to termination. Second, Dr. Alvarez brought a claim against PML for breach of the Buy-Sell Agreement, because it failed to tender the required stock purchase payment within the time and under the terms required by *706 that agreement. Third, Dr. Alvarez brought an action against Dr. Rendon for beach of the Buy-Sell Agreement, because she breached paragraph 3.4 of the agreement when she failed to purchase Dr. Alvarez' shares for the proper amount, after PML breached its obligation to do so.

In response, Dr. Rendon and PML brought three counterclaims. First, they claimed that Dr. Alvarez breached the non-compete provision of the Buy-Sell Agreement by soliciting or otherwise obtaining and performing work for several former, present, or prospective PML clients while working at BML. Second, they claimed that Dr. Alvarez violated the Florida Unfair and Deceptive Trade Practices Act by engaging in unfair methods of competition. Third, they brought a claim for injunctive relief against Dr. Alvarez both for breach of the non-compete and alleged unfair and deceptive trade practices.

On June 15, 2005, Dr. Alvarez filed a motion for partial summary judgment to establish that, even if the non-compete were enforceable, his activity did not violate the terms of the non-compete. In an order filed July 19, 2005, the trial court denied Dr. Alvarez' motion based on the conclusion that "the provisions of the parties' agreement (3.6) are too ambiguous for the court to grant either parties' Motion for Summary Judgment as currently presented."

At a subsequent motions hearing, PML and Dr. Rendon argued a motion in limine to exclude references to Dr. Rendon's alcoholism or rehabilitation treatment for alcoholism, because such references would be unduly prejudicial. At the hearing, the trial judge granted the motion, concluding that Dr. Alvarez' stated reason for seeking introduction of the evidence could be addressed by allowing Dr. Alvarez to reference Dr. Rendon's rehabilitation as "medical leave."

A four-day jury trial was held on all claims. In its verdict, the jury found that PML breached Dr. Alvarez' employment contract by firing him for cause, and awarded Dr. Alvarez $245,123 in damages on that claim. The jury also found that PML, but not Dr. Rendon, breached the Buy-Sell Agreement and awarded Dr. Alvarez $490,000 on that claim. However, the jury also found that Dr. Alvarez breached the non-compete contained in the Buy-Sell Agreement and awarded PML $1,429,731 on its counterclaim. Upon receipt of the verdict, the trial court raised the issue of inconsistency in the verdict and the following exchange occurred:

Counsel for Dr. Rendon: Yes, sir. I think it's consistent.
The Court: That's what I'm looking for, I'm sorry.
Counsel for Dr. Alvarez: Well, I must say, your Honor, I think it is inconsistent. Because if they violated for cause they didn't tender the correct price that the jury has found, we believe that there is a first breach, and therefore should not take place.
The Court: It's not so obvious that—I mean, I don't know if you can correct it.
Counsel for Dr. Alvarez: I don't think it is anything you can take up with the jury.
Counsel for Dr. Rendon: I don't think the jury can do anything about it.
The Court: I don't think I can—or I can't with the jury at this time do anything about it. I think we've got it done, in one sense, a done deal.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

StayTerra Vacations, LLC v. Shawn T. Kaleta
Court of Chancery of Delaware, 2026
Suzuki Motor Corporation v. Scott Winckler
District Court of Appeal of Florida, 2026
ALINE NORMAN v. JANNE JAIMES
District Court of Appeal of Florida, 2019
MARLYN TRACEY v. WELLS FARGO BANK N. A.
264 So. 3d 1152 (District Court of Appeal of Florida, 2019)
Diaz v. Wells Fargo Bank, N.A.
189 So. 3d 279 (District Court of Appeal of Florida, 2016)
Verandah Development, LLC v. Gualtieri
201 So. 3d 654 (District Court of Appeal of Florida, 2016)
New Dirt, Inc. v. Harrison
182 So. 3d 773 (District Court of Appeal of Florida, 2015)
GTP Structures I, LLC v. Wisper II, LLC
153 F. Supp. 3d 983 (W.D. Tennessee, 2015)
Vasilevskiy v. Wachovia Bank, National Ass'n
171 So. 3d 192 (District Court of Appeal of Florida, 2015)
Green Tree Servicing, LLC v. Milam
177 So. 3d 7 (District Court of Appeal of Florida, 2015)
Diana Coba, etc. v. Tricam Industries, Inc.
164 So. 3d 637 (Supreme Court of Florida, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
953 So. 2d 702, 2007 WL 1010297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alvarez-v-rendon-fladistctapp-2007.