Davita Inc. v. Nephrology Associates, P.C.

253 F. Supp. 2d 1370, 2003 U.S. Dist. LEXIS 4770, 2003 WL 1706586
CourtDistrict Court, S.D. Georgia
DecidedMarch 25, 2003
DocketCV102-077
StatusPublished
Cited by4 cases

This text of 253 F. Supp. 2d 1370 (Davita Inc. v. Nephrology Associates, P.C.) is published on Counsel Stack Legal Research, covering District Court, S.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davita Inc. v. Nephrology Associates, P.C., 253 F. Supp. 2d 1370, 2003 U.S. Dist. LEXIS 4770, 2003 WL 1706586 (S.D. Ga. 2003).

Opinion

ORDER

BOWEN, Chief Judge.

Defendants move for partial dismissal of Plaintiffs’ complaint pursuant to Federal Rule of Civil Procedure (“Rule”) 12(b)(6). For the following reasons, Defendants’ motion (Doc. No. 32) is GRANTED IN PART and DENIED IN PART.

I. BACKGROUND

Plaintiff Total Renal Care, Inc. (“TRC”) is a wholly owned subsidiary of Plaintiff *1373 DaVita, Inc. (Complaint ¶ 6.) TRC operates several outpatient kidney dialysis centers in Georgia, including two in Augusta, and one each in Louisville, Waynesboro, Vidalia, and Statesboro. (Id. ¶ 5.)

Defendants Nephrology Associates and Nephrology Centers of America are owned in part by defendants Donald Williamson, Mark Smith, Alan Lavine, and Clay Wilson. (Id. ¶ 9.) The individual defendants are nephrologists and are licensed to practice medicine in Georgia. (Id. ¶¶ 8,9.)

At TRC’s facilities, a nephrologist visits each dialysis patient once a month. (Id. ¶ 12.) The nephrologist gives dialyzing orders and updates the patient’s medication. (Id.) More frequently, TRC’s “Patient Care” teams administer the dialysis to the patients. (Id.) A Patient Care team is comprised of nurses, patient care technicians, a dietician, and a social worker. (Id.) Each member of a Patient Care team meets with the patient during the patient’s weekly dialysis session. (Id.)

TRC’s facilities also employ Medical Directors. (Id. ¶ 13.) A facility’s Medical Director coordinates and oversees “the medical administration of renal dialysis by the facility’s nephrologists.” (Id.) Plaintiffs claim their facilities often contract with a single group of associated nephrolo-gists to provide Medical Director services. (Id. ¶ 14.) The nephrology group designates the individual Medical Director for a specific TRC facility. (Id.) The Medical Directors serve on the facility’s medical staff. (Id. ¶ 15.)

The individual defendants are former Medical Directors at TRC facilities. (Id. ¶ 16.) According to Plaintiffs, the individual defendants entered into a written agreement (the “Medical Director Agreement”) on or near July 1, 1999 for Ne-phrology Associates, P.C. (“Nephrology Associates”) to provide Medical Directors for TRC facilities. (Id. ¶ 18.) The Medical Director Agreement contained non-competition clauses, which were in effect only “during the term of the Appointment.” (Id. ¶ 19.) Plaintiff states that the term of the appointment in the Medical Director Agreement lasted from July 1, 1999 to September 27, 2001. (Id. ¶20.)

Williamson, Smith, LaVine, and Wilson were designated Medical Directors by Ne-phrology Associates, and they continued in those positions until September 27, 2001, “when their Medical Director Agreement with TRC [was] terminated.” (Id. ¶ 16.) According to Plaintiffs, however, the individual defendants retained their privileges to treat dialysis patients at TRC’s facilities. (Id. ¶ 17.) Wilson, Williamson, and Smith all completed an “Application for Practice Privileges” (“the Application”) on or near July 7, 1999 (Id. Ex. B), prior to their signing of the Medical Director Agreement; the Applications also reference TRC’s “Rules for Practice Privileges” (“the Rules”) (id.).

Following the termination of the Medical Director Agreement, the defendants opened or acquired an interest in various nephrology centers, some of which compete with TRC facilities. (Id. ¶¶ 7, 27-30, 33.) The competition between TRC and the defendants’ facilities has spawned many of the claims. Plaintiffs, for instance, enumerate many instances of purportedly unethical solicitations and treatment of patients (see, e.g., id. ¶¶ 35-37) while also asserting that certain of the defendants’ nephrology centers were improperly opened near TRC facilities (id. ¶ 33). As a result, Plaintiffs have alleged claims of (1) tortious interference with business relations, (2) injurious falsehood, (3) defamation, (4) deceptive trade practices, (5) breach of a letter agreement, (6) breach of certain noncompetition agreements, and (7) breach of a purchase agreement. (Id. ¶¶ 38-66.)

*1374 II. STANDARD FOR A MOTION TO DISMISS

Defendants move to dismiss portions of Plaintiffs’ complaint for failure to state a claim under Rule 12(b)(6). “Before this Court can dismiss the complaint pursuant to Fed.R.Civ.P. 12(b)(6), it must conclude that the plaintiff can prove no set of facts in support of the claim that would entitle it to relief.” St. Joseph’s Hosp., Inc. v. Hosp. Auth. of Am., 620 F.Supp. 814, 820 (S.D.Ga.1985), vacated on other grounds, 795 F.2d 948 (11th Cir.1986). “In evaluating the sufficiency of a complaint, a court must accept the well pleaded facts as true and resolve them in the light most favorable to the plaintiff.” Beck v. Deloitte & Touche, 144 F.3d 732, 735 (11th Cir.1998) (internal quotations marks omitted). Furthermore, the Court should consider only the facts as alleged in the parties’ pleadings; matters outside the pleadings may be considered only if the motion is converted to one for summary judgment. Fed.R.Civ.P. 12(b)(6),(c). Motions to dismiss are disfavored and are therefore seldom granted. See Int’l Erectors, Inc. v. Wilhoit Steel Erectors & Rental Serv., 400 F.2d 465, 471 (5th Cir.1968) 1 (“Dismissal of a claim on the basis of barebone pleadings is a precarious disposition with a high mortality rate.”).

III. ANALYSIS

Defendants assert that Plaintiffs’ claims for injurious falsehood (Count II) and defamation (Count III) should be dismissed in toto. Defendants further assert that Plaintiffs’ claim under Georgia’s version of the Uniform Deceptive Trade Practices Act (Count IV) and their claim of breach of contract (Count VI) should be dismissed in part. (Doc. No. 32.)

A. Count II: Injurious Falsehood

Although Plaintiffs’ complaint alleges a claim of injurious falsehood, 2 Defendants claim that there is no recognizable cause of action for injurious falsehood in the State of Georgia. (Doc. No. 33 at 2.)

In Georgia Society of Plastic Surgeons, Inc. v. Anderson, 257 Ga.

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Bluebook (online)
253 F. Supp. 2d 1370, 2003 U.S. Dist. LEXIS 4770, 2003 WL 1706586, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davita-inc-v-nephrology-associates-pc-gasd-2003.