Eghrari-Sabet v. ENT, Allergy and Asthma Center, PC

CourtDistrict Court, D. Maryland
DecidedFebruary 20, 2020
Docket8:19-cv-02055
StatusUnknown

This text of Eghrari-Sabet v. ENT, Allergy and Asthma Center, PC (Eghrari-Sabet v. ENT, Allergy and Asthma Center, PC) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eghrari-Sabet v. ENT, Allergy and Asthma Center, PC, (D. Md. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND Southern Division

JACQUELINE EGHRARI-SABET, M.D., *

Plaintiff, * v. Case No.: GJH-19-2055 * ENT, ALLERGY, AND ASTHMA CENTER PC, *

Defendant. *

* * * * * * * * * * * * *

MEMORANDUM OPINION

Plaintiff Jacqueline Eghrari-Sabet, M.D. brings this civil action against her former employer, Defendant ENT, Allergy, and Asthma Center, P.C. (“ENTAAC”). ECF No. 1. She alleges a breach of contract claim and retaliation under the False Claims Act (“FCA”), 31 U.S.C. § 3730(h), based on her alleged wrongful termination. Id. Pending before the Court is Defendant’s Motion to Dismiss. ECF No. 9. No hearing is necessary. See Loc. R. 105.6 (D. Md. 2016). For the following reasons, Defendant’s Motion to Dismiss is denied. I. BACKGROUND1 Plaintiff is a medical doctor specializing in allergies and immunology. ECF No. 1 ¶ 1. From 1999 until 2017, she was the sole owner of Jacqueline Eghrari-Sabet M.D. P.C. d/b/a Family Allergy & Asthma Care. Id. On June 29, 2017, Plaintiff entered into an agreement to sell her practice to Defendant, which is owned by Dr. Sudhir Sekhsaria and his son, Dr. Vibhav

1 Unless otherwise stated, the background facts are taken from Plaintiff’s Complaint, ECF No. 1, and are presumed to be true. Sehksaria. Id. ¶¶ 2, 5. The closing date of the sale was August 1, 2017 (the “Closing Date”). Id. ¶ 5. A. Employment Agreement In addition to the payment of a cash price, the terms of the sale required the parties to execute a written employment agreement (the “Employment Agreement”).2 Id. The Employment

Agreement provides that Plaintiff would be employed by Defendant for a two-year term starting on the Closing Date, and that she would then be entitled to renew her term of employment for five additional one-year terms. ECF No. 1-2 at 5.3 With respect to her work schedule, the Employment Agreement provided that Plaintiff would “work two (2) days per week commonly on a six-to-eight (6-to-8) hour clinic schedule per day at the Gaithersburg Office on days which [were] agreed upon by both [Plaintiff] and [Defendant].” Id. at 2. Plaintiff could use her scheduled working hours to “provide [Defendant] with all information, suggestion, and recommendations regarding [Defendant]’s business, of which [Plaintiff] ha[d] knowledge that may be of benefit to [Defendant].” Id. at 3. The Employment Agreement also stated that Plaintiff

was to be paid an annual salary of $250,000. Id. The parties agreed “to negotiate in good faith the amount of an adjustment of [Plaintiff]’s annual salary for each renewal term …,” but “in no event” would her “annual salary be less than $250,000 for any renewal term.” Id. The Employment Agreement also provided for Defendant’s cooperation with clinical trials conducted by Plaintiff. It stated that Plaintiff could form a new entity to conduct clinical research trials and to handle other matters related to media, marketing, and promotion unrelated

2 The Employment Agreement and other documents referenced in the Complaint are attached as exhibits, so the Court may consider the contents of these documents without converting the Motion to Dismiss into a motion for summary judgment. Goines v. Valley Cmty. Servs. Bd., 822 F.3d 159, 166 (4th Cir. 2016); Fed. R. Civ. P. 10(c) (“A copy of a written instrument that is an exhibit to a pleading is a part of the pleading for all purposes.”). 3 Pin cites to documents filed on the Court’s electronic filing system (CM/ECF) refer to the page numbers generated by that system. to Defendant. Id. at 2. That new entity was permitted to enter into a lease agreement with Defendant for the use of office space and other resources, and if requested by Plaintiff or her new entity, Defendant was to negotiate the terms of such a lease agreement “promptly and in good faith.” Id. Next, the Employment Agreement provided that each party could terminate the

Agreement “for cause.” Id. at 5. The Employment Agreement defined “for cause” as follows: Either party may terminate this Agreement by the nonbreaching party giving at least thirty (30) days’ written notice of a material breach of this Agreement in which event this Agreement shall terminate thirty (30) days after such notice. The notice shall contain a description of the breach. If such a breach is capable of cure and provided the alleged breaching party diligently pursues such cure, the termination shall be extended for a reasonable time beyond thirty (days) to permit such cure.

Id. Defendant was also permitted to terminate the Employment Agreement if Plaintiff engaged in misconduct, her license to practice medicine was terminated, suspended, or not in good standing, or she was convicted of a felony or other criminal violation involving moral turpitude. Id. at 5–6. Finally, the Employment Agreement provided that “failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that party’s right to subsequently enforce and compel strict compliance with every provision of this Agreement.” Id. at 7. B. Alleged Breaches of the Agreement and Retaliation In 2018, Dr. Sekhsaria and Defendant’s office manager, Linda Baird, began to mismanage the practice. ECF No. 1 ¶ 16. The volume of allergy and immunology patients at Defendant substantially decreased and many of the most veteran clinic support staff and front- office employees chose to leave. Id. On numerous occasions, Ms. Baird encouraged that Plaintiff’s patients be moved onto the schedule of another medical provider, and she often denied Plaintiff’s requests to be listed on the schedule. Id. ¶19. Defendant’s personnel would also inform Plaintiff’s patients that she was retiring, no longer accepting new patients, or had limited appointments available, all of which were false, and Defendant’s management, including Dr. Sekhsaria, repeatedly stated to staff that Plaintiff would be leaving the practice. Id. ¶ 18. In December 2018, Dr. Sekhsaria and Plaintiff had a meeting over dinner at which they

discussed Defendant’s practice, patient care, and plans for future growth. Id. ¶ 15. Dr. Sekhsaria voiced no concerns regarding Plaintiff’s performance of her work obligations, the number of hours she was working, or the cost of her salary. In April 2019, Plaintiff had another conversation with Dr. Sekhsaria regarding Defendant’s status, specifically the lack of qualified staff and ongoing mismanagement. Id. ¶ 17. During that conversation, Dr. Sekhsaria stated that Defendant could not afford to continue paying Plaintiff the salary to which she was entitled under the terms of the Employment Agreement, but at no point did he assert that Plaintiff had failed to comply with her obligations under that Agreement. Id. At some point during her employment by Defendant, Plaintiff formed FAAR Institute

LLC (“FAAR”) and presented Defendant with an equitable draft lease agreement for the purpose of conducting clinical research. Id. ¶ 25. On April 14, 2019, Dr. Sekhsaria emailed Plaintiff to tell her that Defendant would need to withdraw from all studies it was currently participating in. ECF No. 1-5 at 3. That same day, Plaintiff responded that “[t]he current studies are not conducted by [Defendant]. They are conducted by FAAR Institute. I am responsible for them.” Id. Dr. Sekhsaria responded that FAAR “does not have a contract to conduct research onsite at [Defendant].” Id. at 2. He therefore asked that Plaintiff close or withdraw from all studies being conducted onsite at Defendant’s clinics. Id. On May 14, 2019, Dr.

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Bluebook (online)
Eghrari-Sabet v. ENT, Allergy and Asthma Center, PC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eghrari-sabet-v-ent-allergy-and-asthma-center-pc-mdd-2020.