Caplan v. Ochsner Clinic, L.L.C.

799 F. Supp. 2d 648, 2011 U.S. Dist. LEXIS 91594, 2011 WL 2600999
CourtDistrict Court, E.D. Louisiana
DecidedAugust 17, 2011
DocketCivil Action 10-1996
StatusPublished
Cited by7 cases

This text of 799 F. Supp. 2d 648 (Caplan v. Ochsner Clinic, L.L.C.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caplan v. Ochsner Clinic, L.L.C., 799 F. Supp. 2d 648, 2011 U.S. Dist. LEXIS 91594, 2011 WL 2600999 (E.D. La. 2011).

Opinion

ORDER & REASONS

ELDON E. FALLON, District Judge.

Before the Court is Defendants’ Motion for Summary Judgment (Rec. Doc. 29). The Court has reviewed the briefs and the applicable law and now issues this Order and Reasons.

I. BACKGROUND

This breach of contract suit arises out of an employment agreement between the Plaintiff, Dr. W. Ryckman Caplan, and Ochsner Clinic, LLC, Ochsner Health System, and Ochsner Clinic Foundation (“Ochsner” or “Defendants”). Plaintiff is an obstetrieian/gynecologist. Prior to July 31, 2008, he had a practice with six colleagues at East Jefferson General Hospital. Plaintiff alleges that Ochsner solicited him and his colleagues to move their practice to an Ochsner-affiliated clinic. In connection with those negotiations, Plaintiff alleges that he and his colleagues were guaranteed five years of employment as well as a $30,000 loan which would be forgiven after three years of employment. Plaintiff also completed a “Request for Information” form in early May, 2008 in which he disclosed six malpractice lawsuits in which he had been named a defendant.

Although Ochsner made offers guaranteeing five years of employment to four of Plaintiffs colleagues, the written offer to Plaintiff guaranteed only one year of employment, with automatic one-year renewals subject to a provision which allowed either Plaintiff or Ochsner to terminate without cause upon 90 days written notice after completion of the first guaranteed year:

11. Term
The term of this Agreement shall commence on the Commencement Date and shall continue in effect for an initial term of one year (the “Initial Term”). Thereafter, this Agreement shall automatically renew on the same terms and conditions for additional one (1) year terms subject to Section 12.4.
12.4 Termination Without Cause. After the completion of the Initial Term of this Agreement, either Physician or Clinic may terminate this Agreement without cause by giving at least ninety (90) days prior written notice to the other party. Once given by physician, such ninety (90) days notice shall be irrevocable without the consent of Clinic. Refusal of Clinic to give such consent shall not be subject to appeal under Section 12.5.

Plaintiff alleges that a representative of Ochsner assured him “not to worry” about the one-year term and that it was strictly a formality because Plaintiff was over sixty-five years old. 1 Plaintiff signed the offer *650 letter and Professional Services Agreement on May 21, 2008. His term of employment began on August 1, 2008.

On May 7, 2009, Ochsner sent Plaintiff a letter attempting to provide written notice exercising its option to terminate the employment agreement without cause. However, because the option to terminate without cause could only be terminated after Plaintiff had completed the full one-year term of the employment agreement, Ochsner sent a second letter on July 17, 2009, terminating Plaintiffs services as of August 1, 2009 but agreeing to pay him for three additional months, through November 1, 2009. Ochsner also withheld funds from the final salary payments representing repayment of the $30,000 loan, which was not forgiven because Plaintiff had not worked three full years.

Plaintiff filed suit on July 15, 2010, alleging breach of the employment contract, detrimental reliance on Ochsner’s representations of a guaranteed five years employment, and age discrimination. Ochsner answered and counterclaimed, alleging that Plaintiff breached the employment agreement by misrepresenting his malpractice history and performing medical procedures at a different facility while under contract with Ochsner. 2

II. PRESENT MOTION

Defendants now move for summary judgment on Plaintiffs claims as well as their own counter-claims. Defendants argue that they complied fully with the terms of the written contract, and that any additional purported oral representations are unenforceable. Defendants also argue that there is no genuine dispute of material fact that Plaintiff misrepresented his malpractice claims history before receiving and accepting the offer of employment, and that Plaintiff breached the employment agreement by doing outside work.

Plaintiff opposes summary judgment. He argues that he reasonably relied to his detriment on Ochsner’s representations that he would be employed for five years and not to worry about the express one-year term in the Professional Services Agreement. He also argues that summary judgment is not warranted on Defendants’ counter-claims because they were independently aware of his malpractice history and that because Plaintiff complied with the spirit of the agreement in performing outside work and immediately halted that work upon written notice.

III. LAW & ANALYSIS

A. Summary Judgment Standard

A district court can grant a motion for summary judgment only when the “the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a). When considering a motion for summary judgment, the district court “will review the facts drawing all inferences most favorable to the party opposing the motion.” Reid v. State Farm Mut. Auto. Ins. Co., 784 F.2d 577, 578 (5th Cir.1986). The court must find “[a] factual dispute ... [to be] ‘genuine’ if the evidence is such that a reasonable jury could return a verdict for the nonmoving party ... [and a] fact ... [to be] ‘material’ if it might affect the outcome of the suit under the governing substantive law.” Beck v. Somerset Techs., Inc., 882 F.2d 993, 996 (5th Cir.1989) (citing Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986)).

*651 “If the moving party meets the initial burden of showing that there is no genuine issue of material fact, the burden shifts to the non-moving party to produce evidence or designate specific facts showing the existence of a genuine issue for trial.” Engstrom v. First Nat’l Bank of Eagle Lake, 47 F.3d 1459, 1462 (5th Cir.1995). The mere argued existence of a factual dispute will not defeat an otherwise properly supported motion. See Anderson, 477 U.S. at 248, 106 S.Ct. 2505. “If the evidence is merely colorable, or is not significantly probative,” summary judgment is appropriate. Id. at 249-50, 106 S.Ct. 2505 (citations omitted).

B. Summary Judgment on Plaintiffs Claims

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
799 F. Supp. 2d 648, 2011 U.S. Dist. LEXIS 91594, 2011 WL 2600999, Counsel Stack Legal Research, https://law.counselstack.com/opinion/caplan-v-ochsner-clinic-llc-laed-2011.