Costin v. Midwest Vision Partners, L.L.C.

2024 Ohio 463
Ohio Court of Appeals·Decided February 8, 2024·No. 112651·Published·Cited by 2 cases

Opinion

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

BRYAN COSTIN, :

Plaintiff-Appellee, :

No. 112651

v. :

MIDWEST VISION PARTNERS, L.L.C., ET AL. :

Defendants-Appellants. :

JOURNAL ENTRY AND OPINION

JUDGMENT: AFFIRMED

RELEASED AND JOURNALIZED: February 8, 2024

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-23-974946

Appearances:

Dennis M. O’Toole; Patterson Law Firm, LLC and Kristi L.

Browne, pro hac vice, for appellee.

ZASHIN & RICH CO., L.P.A., Natalie M. Stevens, and Lauren M. Drabic, for appellants Northern Ohio Eye Consultants, Inc., d.b.a. Cleveland Eye Clinic, Midwest Vision Partners Management, LLC, Midwest Vision Partners Holdco, LLC, and Accomodative Surgery Center, LLC.

EILEEN T. GALLAGHER, J.:

Defendants-appellants, Midwest Vision Partners Management, L.L.C., Midwest Vision Partners Holdings, L.L.C., Midwest Vision Partners Holdco, L.L.C. (together “Midwest Vision”), Northern Ohio Eye Consultants, Inc. d.b.a. Cleveland Eye Clinic (“Cleveland Eye Clinic”), and Accomodative Surgery Center, L.L.C. (“ASC”) (collectively “appellants”) appeal from the trial court’s judgment denying their motion to compel arbitration, motion to stay proceedings, and motion to stay discovery. Appellants raise the following assignment of error for review:

The trial court erred in denying defendants-appellants’ motion to compel arbitration, motion to stay proceedings, and motion to stay discovery pending resolution of these motions despite the existence of a valid and enforceable arbitration clause in the agreement on which plaintiff-appellee had based his claims, and by failing to hold a R.C.

2711.03(A) evidentiary hearing, and by failing to summarily proceed to a jury trial on the arbitrability issue as required by R.C. 2711.03(B).

After careful review of the record and relevant case law, we affirm the trial court’s judgment.

I. Procedural and Factual History Plaintiff-appellee, Bryan Costin, M.D. (“Dr. Costin”), is a board-

certified oculoplastic surgeon. On September 13, 2017, Dr. Costin entered into an Employment Agreement with defendant-appellant, Cleveland Eye Clinic. The Employment Agreement set forth the terms and conditions of Dr. Costin’s employment. Regarding Dr. Costin’s compensation, Cleveland Eye Clinic agreed to pay Dr. Costin (1) an annual base salary of $300,000, (2) a production of compensation bonus of 25 percent of collections exceeding the amount of $500,000,

(3) an optical sales bonus of 10 percent of Dr. Costin’s “optical gross profits,” (4) a full reimbursement of collected insurance and/or cash payments for after-hours services, and (5) a 25 percent share of annual profits for certain oculoplastic services. (Agreement, schedule A, sec. 1.) The Employment Agreement further authorized Dr. Costin or his representative to “audit the accuracy of the actual collections for professional services for which [Dr. Costin] provided.”

Relevant to this appeal, Section 16 of the Employment Agreement contained an arbitration provision, stating:

16.1 Other than issues or disputes relating to or arising out of Section 5 above, unresolved issues of disagreement between the parties will initially be brought to a mutually-agreeable independent third party for informal mediation.

16.2. Other than issues or disputes relating to or arising out of Section 5 above, any controversy or claim arising out of or relating to this Agreement or any breach thereof that is not resolved pursuant to Subsection 16.1 above, will be settled by arbitration in Cuyahoga County, Ohio, in accordance with Rules of Arbitration of the American Health Lawyer’s Association (“AHLA”). Such arbitration may be commenced by one party notifying the other and also the AHLA that such party intends to seek arbitration. The decision of the AHLA will be final and binding upon all parties hereto. Judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. The expenses of arbitration will be borne equally by the parties. Issues or disputes arising out of Section 5 may be arbitrated at Employer’s sole discretion, such decision being binding upon the Employee.

At some point during Dr. Costin’s employment, Cleveland Eye Clinic was acquired by Midwest Vision. Cleveland Eye Clinic continued doing business under its designated name, and Dr. Costin was assured that “his Employment

Agreement terms would remain the same under Midwest Vision’s ownership.” (Complaint at ¶ 44-45.)

On June 7, 2021, Dr. Costin was notified that his employment would be terminated at the conclusion of a notice period. On August 19, 2021, Dr. Costin entered into an amended employment agreement with Cleveland Eye Clinic (“the Amended Agreement”). The Amended Agreement provided, in pertinent part:

2. Employee’s employment shall terminate effective September 30, 2021 (the “Termination Date”). Neither Employee or Employer shall have any further obligation under the Employment Agreement effective as of the Termination Date; provided that, notwithstanding the foregoing, Sections 5,[1] 7.2(b),[2] 9.1[3] (it being agreed the Employment Agreement was terminated by Employer), 10,[4] 11,[5]

and 17[6] shall survive the termination of the Employment Agreement and remain in full force and effect.

(Emphasis added.) Ultimately, disagreements concerning the amount of compensation owed to Dr. Costin arose following his termination date.

On February 8, 2023, Dr. Costin filed a civil complaint against defendants-appellants in Cuyahoga C.P. No. CV-23-974946.7 The complaint set

1 Titled “Restrictive Covenants.”

2 Titled “Professional Liability Insurance.”

3 Titled “Termination.”

4 Titled “Employer Documents and Other Property.”

5 Titled “Breach of Confidentiality.”

6 Titled “Indemnification.”

7 The complaint also names Midwest Vision Partners, L.L.C., and Midwest Vision

Partners Holdings, L.L.C. as party defendants. However, these entities are not named appellants in this appeal. According to the appellants, “these entities are not actually forth claims for breach of contract, unjust enrichment, and accounting. Specifically, Dr. Costin asserted that the defendants “breached the Amendment to the Employment Agreement by failing to pay [Dr. Costin] all the amounts he is owed within 30 days of termination and to date they still have not paid all amounts owed.” Alternatively, Dr. Costin alleged that Midwest Vision and ASC unjustly collected and retained the benefits of his medical services without paying him pursuant to the terms of the original Employment Agreement. Finally, Dr. Costin sought an order requiring the defendants to “provide a complete accounting of the revenues received and costs incurred during [his] employment that are related to services he provided and for such other and further relief as the court deems appropriate.”

On March 13, 2023, appellants filed a “motion to compel arbitration, motion to stay proceedings, and motion to stay discovery pending resolution of these motions.” Relying on section 16 of the original Employment Agreement, appellants argued that Dr. Costin “unequivocally agreed to submit any and all disputes regarding his compensation and benefits to mediation and, if unresolved through mediation, to final and binding arbitration.” Appellant’s motion included a jury demand, stating:

Should the court determine after hearing from the parties under R.C.

2711.03(A) that an issue may exist as to the validity and enforceability of the arbitration agreement, then defendants request a jury trial on the validity and enforceability issues in accordance with R.C. 2711.03(B), requesting the trial court to summarily proceed to trial and submit the

related to the represented defendants-appellants and the represented defendants- appellants do not believe they bear any relationship to Costin’s employment.”

validity and enforceability issues to a jury for disposition in accordance with R.C. 2711.03(B).

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Costin v. Midwest Vision Partners, L.L.C., 2024 Ohio 463 (Ohio Ct. App. 2024).

2024 Ohio 463 (Costin v. Midwest Vision Partners, L.L.C.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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