Brecheen v. Lofaro

559 F. App'x 723
Court of Appeals for the Tenth Circuit·Decided May 21, 2014·No. 13-8059·Unpublished·Cited by 1 cases

Opinion

ORDER AND JUDGMENT *

MARY BECK BRISCOE, Chief Judge.

Plaintiffs Roger Brecheen, M.D., his wife, Kathy Watkins-Brecheen, and Jackson Hole Ob-Gyn, P.C., a professional corporation formed by Brecheen, filed this action asserting a host of federal and state claims arising out of Brecheen’s eviction from an office building in Jackson, Wyoming. Among those were two claims asserted under 42 U.S.C. § 1983, one for deprivation of Brecheen’s property interests and another for deprivation of Bre-cheen’s liberty interests, against defendant Maura Lofaro, M.D., a former partner of Brecheen’s. The district court granted summary judgment in favor of Lofaro on those claims. Plaintiffs now appeal. Exercising jurisdiction pursuant to 28 U.S.C. § 1291, we affirm.

I

Factual background

a) The parties and their employment

Plaintiff Roger Brecheen, M.D. (Bre-cheen), is a board-certified obstetrician and gynecologist licensed to practice medicine in the State of Wyoming. Brecheen’s wife, plaintiff Kathy Watkins-Brecheen (Watkins-Brecheen), is a certified nurse midwife licensed to practice in the State of Wyoming.

In 1993, Brecheen and his wife moved to Jackson, Wyoming, where Brecheen established a solo practice in obstetrics and gynecology. Watkins-Brecheen began working for Brecheen shortly thereafter. In June 1994, Brecheen formed Jackson Hole Ob-Gyn, P.C. (JHOG), a professional corporation through which he provided obstetric and gynecologic care to his patients.

In July 1997, defendant Maura Lofaro, M.D. (Lofaro), began working for JHOG as a board-certified obstetrician and gynecologist. Lofaro also served as a sponsoring physician for Watkins-Brecheen in her work as a midwife. On March 1, 2000, Brecheen and Lofaro entered into a Stock Purchase and Transfer Agreement pursuant to which each of them became a 50% shareholder of JHOG.

In 2002, defendant Shannon Roberts, M.D. (Roberts), began working for JHOG as an obstetrician and gynecologist. She also, as an employee of JHOG, served as a sponsoring physician for Watkins-Bre-cheen in her work as a midwife. Roberts was subsequently offered the opportunity to buy into the JHOG partnership, but she declined and continued to work as an employee of JHOG.

b) The lease agreement

On June 1, 1994, Zadie, Inc. (Zadie), a corporation owned and operated by Bre-cheen, entered into a “Hospital ‘Campus’ Lease Agreement” (Lease Agreement) with the Teton County Hospital District d/b/a St. John’s Medical Center (SJMC), to lease Suite 201 of the St. John’s Professional Office Building. Aplt. App. at 1151. The intended purpose of the Lease Agreement was to allow JHOG to utilize Suite 201 in the St. John’s Professional Office Building for its medical practice.

*725 Paragraph 1.2 of the Lease Agreement outlined the lease term:

1.2 Lease Term. The lease term shall be a period commencing on June 1, 1994 and terminating on May 80, 1995, unless extended or terminated in accordance with this Agreement.
The Lessee shall have the option to extend this lease for a period of five additional years to be included as part of the lease term. Any such extension shall be automatic without any further action unless the Lessee gives written notice of non-extension to Lessor by certified mail at least 60 days prior to the end of the original lease term. Any extension term will be treated as part of the lease term.

Aplee. App. at 185.

Paragraph 2.8 of the Lease addressed the subject of modifications to the lease terms:

2.3 Entire Agreement All representations made by the parties in negotiations of this Agreement have been incorporated herein; there are no verbal agreements between the parties or implied duties to modify the terms and conditions thereof, and any further modification of this Agreement must be in writing and signed on behalf of the Lessee and Lessor.

Id. at 189.

On May 30, 2000, the final day of the automatic five-year extension period under the Lease Agreement, SJMC’s Assistant Administrator Virgil Boss reviewed and added the following handwritten notations to Paragraph 1.2 of the Lease Agreement (which, as noted, addressed the lease term): “Monthly Rent. $2874.13 + NNM @ 3.50 = $793 mo” and “Month to Month 5/30/00.” Id. at 185. Boss then met with Brecheen and reviewed the Lease Agreement and Boss’s handwritten notations. Neither Boss nor Brecheen initialed or signed the handwritten notations.

c) Dissolution of JHOG and the separation of Drs. Brecheen and Lofaro

Brecheen and Lofaro continued their practice as equal partners in JHOG until early 2007. At that time, they began discussing the possibility of Lofaro purchasing Brecheen’s shares in JHOG. The two were unable, however, to agree on a price for Brecheen’s share of JHOG. Id.

In the fall of 2007, Lofaro invited Bre-cheen to attend a mediation on October 19, 2007. Brecheen agreed to do so. Lofaro was represented at the mediation by an attorney, as were Brecheen and his wife. The mediation ended with no formal written agreement having been signed and executed by Lofaro and Brecheen. But Lo-faro believed that she and Brecheen had agreed on several matters relevant to the dissolution, and Brecheen conceded that they “theoretically reached an agreement to dissolve” JHOG, Aplee. App. at 419, with “some details pending [his] leaving [Suite 201] ... to be worked out,” id. at 420.

Shortly after the mediation session ended, Lofaro contacted Boss and told him, in pertinent part, that: she and Brecheen had dissolved JHOG; she and her staff would remain in Suite 201; Brecheen and his staff would need new space or an alternative space for eighteen months opposite Suite 201; she and Brecheen would be splitting JHOG’s accounts receivable and she would be taking JHOG’s furniture; and Brecheen had signed an Arbitration Agreement.

On October 26, 2007, James Schuessler, SJMC’s CEO, sent a letter to Lofaro “acknowledging [her] verbal notice ... that J[HOG] w[ould] be dissolving effective November 30, 2007, pending final legal documents.” Aplee. App. at 205. The letter *726 further informed Lofaro: “As Lessee of Suites 201 and 203 in the Professional Office building, you will be required to have [SJMC] approval for any new business entity transfer or assignment on December 1, 2007.” Id. Schuessler sent a copy of his letter to Brecheen and, on November 15, 2007, Brecheen sent a letter to Schuessler acknowledging receipt of Schuessler’s October 26, 2007 letter. In his letter of November 15, 2007, Brecheen stated, in pertinent part, that “dissolution [of JHOG] w[ould] not be completed by November 30th, [but that] this separation of a long-standing medical practice w[ould] occur soon,” and that he “w[ould] be moving [his] medical practice off the campus of SJMC.” Id. at 207.

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Brecheen v. Lofaro, 559 F. App'x 723 (10th Cir. 2014).

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