Castillo-Sang v. Christ Hosp. Cardiovascular Assocs., L.L.C.

2020 Ohio 6865
Ohio Court of Appeals·Decided December 23, 2020·No. C-200072·Published·Cited by 10 cases

Opinion

IN THE COURT OF APPEALS

FIRST APPELLATE DISTRICT OF OHIO HAMILTON COUNTY, OHIO

MARIO CASTILLO-SANG, M.D., : APPEAL NO. C-200072 TRIAL NO. A-1905278

:

Plaintiff-Appellee, :

vs. O P I N I O N.

:

THE CHRIST HOSPITAL CARDIOVASCULAR ASSOCIATES, : LLC, :

Defendant-Appellant. :

Civil Appeal From: Hamilton County Court of Common Pleas Judgment Appealed From Is: Affirmed Date of Judgment Entry on Appeal: December 23, 2020

The Janszen Law Firm and August T. Janszen, for Plaintiff-Appellee,

Vorys Sater Seymour and Pease LLP, Nathaniel Lampley, Jr., and Emily E. St. Cyr, for Defendant-Appellant.

MYERS, Presiding Judge.

{¶1} The Christ Hospital Cardiovascular Associates, LLC, (“TCHCVA”)

appeals the trial court’s judgment granting a preliminary injunction in favor of former employee Mario Castillo-Sang, M.D., that enjoined TCHCVA from enforcing a covenant not to compete contained in Castillo-Sang’s employment agreement. Because the trial court did not abuse its discretion in granting the preliminary injunction in favor of Castillo-Sang, we affirm the trial court’s judgment.

Background

{¶2} Castillo-Sang was hired by TCHCVA in May 2015 as a cardiothoracic surgeon. In addition to performing other open-heart and cardiothoracic surgeries, Castillo-Sang specializes in two specific cardiovascular procedures: minimally invasive mitral valve repair and replacement (“Mitral Valve”) and left ventricular assist device therapy (“LVAD”).

{¶3} The Mitral Valve surgical procedure involves performing open-heart surgery through a two-inch incision in the right chest and a one-inch incision in the groin, rather than the traditional sternotomy surgical procedure, which involves cutting through the patient’s breastbone to perform the mitral valve repair or replacement. The Mitral Valve procedure allows the surgery patient to recover faster, with less pain and less need for narcotics. It also requires fewer blood transfusions and a shorter hospital stay for the patient. LVAD is a cardiovascular surgical procedure in which a mechanical pump is implanted into a patient with heart failure, enabling the bottom left chamber of the heart to pump blood out of the ventricle to the aorta.

{¶4} When TCHCVA hired him in 2015, Castillo-Sang was an expert in Mitral Valve and LVAD surgical procedures. Castillo-Sang developed his expertise during his cardiothoracic surgical residency at the Washington University School of

Medicine, during his additional training in Minimally Invasive Mitral Surgery at the Leipzig Heart Center, and during his surgical experience at the Medical University of South Carolina. While at TCHCVA, he gained more experience and expertise.

{¶5} Castillo-Sang’s employment agreement with TCHCVA contained a covenant not to compete which provided in relevant part:

* * * During Physician’s employment under this Agreement and for a period of twelve (12) months following the termination of such employment (the “Restricted Period”), Physician shall not, within Hamilton County and all contiguous counties (the “Restricted Area”)

personally or through any agent or family member in any manner, engage directly or indirectly, in any business activity which is directly or indirectly competitive with the Medical Practice’s or TCHCVA’s or Hospital’s operations * * *.

Employment Agreement, Section 11.B.

{¶6} Castillo-Sang also agreed to keep secret and not disclose or use “TCHCVA’s programs, staff recruitment programs, trade secrets, patient lists, physician lists, patient programs, patient charts, records, files, computer data” and all other information relating to, among other things, TCHCVA’s business practices, financial and billing information, pricing policies, marketing information, business acquisition plans, new personnel acquisition plans, and technical processes, all defined as “Confidential Information.” Employment Agreement, Section 11.D. He also agreed not to solicit any patients of TCHCVA, Employment Agreement, Section 11.E, or to solicit any employee of TCHCVA to leave the practice, Employment Agreement, Section 11.F.

{¶7} With respect to all of these restrictions, Castillo-Sang agreed:

Physician acknowledges that the terms and conditions of the restrictive covenants in this Agreement are reasonable and necessary

for the protection of TCHCVA and Hospital’s business, trade secrets and Confidential Information and to prevent damage or loss to TCHCVA and Hospital as a result of actions taken by Physician. The parties further agree that the limitations and parameters put on these covenants are reasonable and should be enforced by any court of competent jurisdiction without variance therefrom.

Employment Agreement, Section 11.G.

{¶8} Castillo-Sang further acknowledged that TCHCVA could seek an injunction in case of breach of any of these restrictions or covenants. Employment Agreement, Section 11.G.

{¶9} Finally, the employment agreement contained the following:

The provisions of this Section 11, regardless of the reasons for termination, shall survive the termination of this Agreement.

NOTWITHSTANDING THE FOREGOING, IF THE RESTRICTIONS HEREIN SPECIFIED ARE ADJUDGED UNREASONABLE IN ANY COURT PROCEEDING, THE PARTIES HEREBY AGREE TO THE REFORMATION OF SUCH RESTRICTION BY THE COURT TO LIMITS WHICH IT FINDS TO BE REASONABLE, AND THE PARTIES WILL NOT ASSERT THAT SUCH RESTRICTIONS SHOULD BE ELIMINATED IN THEIR ENTIRETY BY SUCH COURT.

THE PARTIES ACKNOWLEDGE THAT THE TERMS OF SECTION 3.A, 10, AND 11 HAVE BEEN NEGOTIATED AT ARM’S LENGTH WITH ADVICE OF COUNSEL. THE PARTIES AGREE SUCH THAT SUCH RESTRICTIONS SHALL BE LEGALLY ENFORCEABLE AND SHALL NOT BE CHALLENGED BY ANY PARTY IN ANY COURT PROCEEDING. THE PHYSICIAN REPRESENTS THAT PHYSICIAN UNDERSTANDS THE FULL EXTENT AND IMPLICATION OF THE

TERMS OF SECTIONS 3.A, 10, AND 11, AND HEREBY KNOWINGLY AND VOLUNTARILY AGREES TO BE BOUND THEREBY.

(Emphasis in original.)

{¶10} In July 2019, Castillo-Sang informed TCHCVA that he intended to look for other employment. He spoke to individual TCHCVA board members, whom he

claims assured him that the board would not enforce the noncompetition restrictions in his employment agreement. In August 2019, Dr. Castillo-Sang asked the TCHCVA board to waive the restrictive covenants contained in the agreement, but the board refused.

{¶11} On December 2, 2019, Castillo-Sang resigned his employment with TCHCVA and accepted an offer of employment from St. Elizabeth Hospital in

Edgewood, Kentucky, which is within the agreement’s Restricted Area.

The Lawsuit

{¶12} Prior to accepting his position with St. Elizabeth Hospital, Castillo-

Sang filed this action against TCHCVA in the Hamilton County Common Pleas Court

in November 2019, seeking, among other things,1 a declaratory judgment that the noncompetition restrictions in his employment agreement were illegal, invalid, and unenforceable. In the alternative, Castillo-Sang sought a declaratory judgment that the “Restricted Area” contained in the covenant not to compete be limited to Hamilton County and/or Hamilton, Butler, Warren, and Clermont counties in Ohio. Castillo-Sang also requested a temporary restraining order (“TRO”), preliminary injunction, and permanent injunction prohibiting TCHCVA from enforcing the noncompetition restrictions against him.

1 Castillo-Sang also asserted claims for promissory estoppel and unlawful discriminatory practices, alleging that he sought local employment in reliance on promises that TCHCVA would not seek to enforce his covenant not to compete and that TCHCVA enforced the restrictive covenants against him and other Hispanic physicians, while waiving and releasing four Caucasian physicians from the same restrictions. These claims remain pending and are not part of this appeal.

{¶13} TCHCVA filed an answer and a counterclaim seeking a declaratory judgment that the restrictions and covenant not to compete contained in Castillo-

Sang’s employment agreement were reasonable as a matter of law, nonviolative of public policy, and enforceable against Castillo-Sang.

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Castillo-Sang v. Christ Hosp. Cardiovascular Assocs., L.L.C., 2020 Ohio 6865 (Ohio Ct. App. 2020).

2020 Ohio 6865 (Castillo-Sang v. Christ Hosp. Cardiovascular Assocs., L.L.C.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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