Cook-Bolden v. DG TRC Management Company, LLC

CourtDistrict Court, S.D. New York
DecidedMay 15, 2019
Docket1:19-cv-03425
StatusUnknown

This text of Cook-Bolden v. DG TRC Management Company, LLC (Cook-Bolden v. DG TRC Management Company, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cook-Bolden v. DG TRC Management Company, LLC, (S.D.N.Y. 2019).

Opinion

UNITED STATES DISTRICT COURT USDC SDNY SOUTHERN DISTRICT OF NEW YORK DOCUMENT Cn ae ELECTRONICALLY FILED FRAN E. COOK BOLDEN, M.D., DOC #: \ DATEFILED: _ S-//S7/9 Plaintiff, -against- 19-CV-3425 (KMW) DG TRC MANAGEMENT COMPANY, LLC d/b/a TRICENNA, SKIN SPECIALTY OPINION & ORDER DERMATOLOGY, DANIEL GROISSER, M.D., and SHANNON DELAGE, Defendants. eee eee KIMBA M. WOOD, United States District Judge: Plaintiff Dr. Fran E. Cook-Bolden (“Dr. Cook-Bolden”) seeks a temporary restraining order and a preliminary injunction enjoining enforcement of the arbitration provision contained in an agreement she entered into with Defendant DG TRC Management, d/b/a Tricenna (“Tricenna”) and Skin Specialty Dermatology (the “‘Practice”), as well as various other relief. Ata hearing held on April 29, 2019, the Court denied Dr. Cook-Bolden’s request in its entirety. This Order sets forth the basis for that decision. BACKGROUND I. Factual Background! This case arises out of Dr. Cook-Bolden’s sale of her medical practice and her subsequent employment and termination by the Practice. In connection with the sale of her medical practice, Dr. Cook-Bolden entered into three agreements with Defendants, all dated January 12, 2018: the Asset Purchase Agreement (the “APA”); the Management Services Agreement; and the

' Unless otherwise noted, the facts in this section arg not disputed.

Employment Agreement. (See Compl., Exs. A, B, C, respectively.) On April 1, 2019, Defendants notified Dr. Cook-Bolden of their intent to terminate her employment. (/d. § 119.) Also on April 1, 2019, the Practice and Tricenna filed for arbitration (the “AAA Arbitration”), pursuant to § 7.15 of the APA. (See id.,Ex.P.) As relevant here, that section provides: The Parties agree that any claim, controversy, or other matter in question based upon, arising out of, or otherwise in respect of this Agreement or any Transaction Document, including any dispute arising under any claim made pursuant to Article VI (a “Dispute”) will be resolved by arbitration before one arbitrator chosen from a list of arbitrators provided by the American Arbitration Association (the “AAA”) and mutually agreed to in writing by Purchaser and the Owner. ... As promptly as practicable after the arbitrator is selected ..., the Owner . . . and Purchaser . . . will prepare and submit a written presentation to the arbitrator, which may include, in addition to the arguments and position statements of each of Purchaser and the Owner, exhibits and testimony in the form of affidavits. As soon as practicable thereafter (and, in any event, no later than thirty (30) days after submission), the arbitrator will choose one of the Party’s positions based solely upon the written presentation of Purchaser (and its professional advisors), on the one hand, and written presentation of the Owner (and her professional advisors), on the other hand. Purchaser, on the one hand, and the Owner on the other hand, will be responsible for its own costs and fees incurred in connection with such Dispute. Purchaser, on the one hand, and the Owner, on the other hand, will share equally the fees and expenses of the arbitrator..... It is the desire and intent of the Parties, that such arbitration be held without any discovery, deposition or motion practice, that the arbitrator receive evidence solely through the written submissions and not hold an evidentiary hearing, and that the arbitrator has no ability to extend dates or apply rules that conflict with these provisions. Notwithstanding the foregoing or anything in this Agreement to the contrary, no Party shall be prevented from seeking equitable remedies for relief (including specific enforcement of any decision made by the Arbitration Firm or AAA hereunder) in a court of competent jurisdiction. APA § 7.15.

On April 15, 2019, the Practice terminated Dr. Cook-Bolden’s employment. (Compl. 4 119.) B. Procedural Background On April 17, 2019, Dr. Cook-Bolden filed the complaint in this case, bringing claims for, inter alia, (1) discrimination in violation of 42 U.S.C. § 1981; (2) violations of New York State Human Rights Law; and (3) breach of contract. (See Compl. 184-344.) Dr. Cook-Bolden brings her claims against Tricenna; the Practice; Daniel Groisser, M.D., Tricenna’s medical director and the Practice’s President; and Shannon Delage, Tricenna’s Chief Executive Officer (together, “Defendants”). (See id. §§ 7-13; 75.) The Complaint seeks “judgment against the all Defendants . . . in excess of $500,000.00, plus compensatory damages, punitive damages and attorney’s fees.” (dd. at 57.) Also on April 17, 2019, counsel for Dr. Cook-Bolden appeared ex parte in this Court’s Chambers to ask the Court, acting its Part I capacity, to sign an order to show cause which included a temporary restraining order (“TRO”).*-_ That TRO, if granted, would have (1) enjoined the Defendants’ enforcement of Paragraphs 13 and 14 of the Employment Agreement (the “Non-Competition Covenant” and “Non-Solicitation Covenant,” respectively, and together, the “Restrictive Covenants’); (2) enjoined the AAA Arbitration; (3) directed the production of all documents relating to financial and medical records reflecting compensation due to Dr. Cook-Bolden pursuant to the Employment Agreement, and directed Defendants to pay Dr. Cook-Bolden’s attorney’s fees; and (4) enjoined Defendants from using the name “Dr. Fran E. Cook Bolden, M.D., P.C.” Counsel also submitted a brief in support of its motion (the

2 On that date, the undersigned was the Part I Judge on duty. The case has now been assigned permanently to the undersigned,

“Memorandum” or “Mem.”). The parties subsequently informed the Court by telephone that they had consented to a temporary stay of the AAA Arbitration pending the Court’s resolution of Dr. Cook-Bolden’s motion. Due to previously-scheduled commitments of both parties’ counsel, a conference on Dr. Cook-Bolden’s motion for preliminary relief could not be arranged until April 29, 2019. On April 23, 2019, Defendants submitted a brief in opposition to Dr. Cook-Bolden’s motion. (Mem. Opp’n Mot. (“Opp’n”), ECF No. 8.) On April 25, 2019, Dr. Cook-Bolden submitted a reply brief in support of her motion. Reply Mem. Further Supp. Mot. (“Reply”), ECF No. 13.) On April 29, 2019, the Court held a hearing (the “April 29 Hearing”), during which it orally denied Dr. Cook-Bolden’s motion. This Order explains the basis of the Court’s ruling. | LEGAL STANDARD “The standard[s] for granting a [TRO] and a preliminary injunction . . . are identical.” Spencer Trask Software & Info. Servs., LLC v. RPost Int’l Ltd., 190 F. Supp. 2d 577, 580 (S.D.N.Y. 2002) (Leisure, J.). In order to obtain a TRO or a preliminary injunction, a movant “must show (1) irreparable harm; (2) either a likelihood of success on the merits or both serious questions on the merits and a balance of hardships decidedly favoring the moving party; and (3) that [preliminary relief] is in the public interest.” N. Am. Soccer League, LLC v. United States Soccer Fed’n, Inc., 883 F.3d 32, 37 (2d Cir. 2018). DISCUSSION I. Arbitration Dr. Cook-Bolden seeks to enjoin the AAA Arbitration filed by Defendants on the ground that the prohibition on discovery contained in § 7.15 of the APA is unconscionable, and thereby

renders her agreement to arbitrate unenforceable. Dr. Cook-Bolden argues that, absent discovery, she will be precluded from vindicating her contractual and statutory rights and from properly defending herself against Defendants’ claims.

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Cook-Bolden v. DG TRC Management Company, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cook-bolden-v-dg-trc-management-company-llc-nysd-2019.