Endodontic Associates of Lexington, Inc. v. Johnston-Neeser

20 Mass. L. Rptr. 677
CourtMassachusetts Superior Court
DecidedMarch 16, 2006
DocketNo. 053319
StatusPublished
Cited by2 cases

This text of 20 Mass. L. Rptr. 677 (Endodontic Associates of Lexington, Inc. v. Johnston-Neeser) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Endodontic Associates of Lexington, Inc. v. Johnston-Neeser, 20 Mass. L. Rptr. 677 (Mass. Ct. App. 2006).

Opinion

MacLeod-Mancuso, Bonnie H., J.

The plaintiff and defendant in counterclaim, Endodontic Associates of Lexington, Inc. (“EAL”) brought claims against the defendants, plaintiffs in counterclaim and third-party plaintiffs, Joyce C. Johnston-Neeser (“Dr. Neeser”), Kelly Barnes (“Dr. Barnes”), and Sudbury Endodontics, P.C. (“SE”) (collectively the “plaintiffs in counterclaim”), alleging that the plaintiffs in counterclaim had violated non-compete agreements and taken EAL property. Subsequently, the plaintiffs in counterclaim brought counterclaims against EAL, including: Counts I and II: Breach of Contract; Counts III and IV: Breach of the Implied Covenant of Good Faith and Fair Dealing; Counts V and VI: Fraud; Counts VII and VIII: Intentional Infliction of Emotional Distress; Counts IX, X, and XI: Slander; Counts XII, XIII, and XIV: Intentional Interference with Business; Counts XV, XVI, and XVII: Violation of G.L.c. 93A; Counts XVIII, XIX, and XX: Violation of Sherman Anti-Trust Act; Counts XXI, XXII, and XXIII: Violation of G.L.c. 93, §5; and Count XXIV: Declaratory Judgment. For the reasons stated herein, the Motion of Plaintiff to Dismiss Counterclaims is ALLOWED in part, as to Counts IX-XTV and XVIII-XXIII, and DENIED, in part, as to Counts I-VIII, XV-XVII, and XXIV.

[678]*678 BACKGROUND

At this stage of the litigation, the court treats the allegations of the plaintiffs in counterclaim as true. Dr. Neeser and Dr. Bames met one another during their endodontics residencies at the Boston University School of Dentistry in 1999. The third-party defendant, Dr. Elisa Fulton (“Dr. Fulton”) met Dr. Neeser and Dr. Bames when she was their instructor at Boston University during their residencies. At that time, Dr. Fulton was also the owner of an endodontics practice, EAL. In March 2001, Dr. Fulton offered Dr. Neeser an endodontic position with EAL. In December 2002, Dr. Fulton offered Dr. Bames an endodontic position with EAL.

Dr. Neeser’s Agreement with EAL

Before Dr. Neeser agreed to work at EAL, Dr. Fulton made a series of promises to Dr. Neeser, including that: (1) Dr. Neeser would be compensated at a rate of 50% of production;2 (2) EAL would pay either health or disability benefits, but not both; (3) Dr. Neeser would only work Saturdays if patients were booked to be treated; and (4) Dr. Neeser would be brought on as a partner. Dr. Neeser was reluctant to move her family unless a partnership with EAL was likely. Dr. Neeser rejected other job offers based on the promises that Dr. Fulton had made. In September 2001, Dr. Neeser started to work at EAL. In January 2002, Dr. Fulton presented Dr. Neeser with a document entitled “Associateship Agreement.” Notably, paragraph 6.3(b) of this agreement provided for ninety days notice if EAL wished to terminate Dr. Neeser. Dr. Neeser balked at signing this agreement because it did not contain any of Dr. Fulton’s aforementioned oral promises. Dr. Neeser also expressed concern regarding the inclusion of a non-compete provision.3 Dr. Fulton urged Dr. Neeser to sign the agreement despite her reservations because, as she stated, it was only a “standard” agreement, which was required by her lawyers. At this time, Dr. Fulton orally confirmed that her prior oral promises would be kept despite their absence from the written contract. On January 23, 2002, Dr. Neeser signed the written agreement.

Dr. Barnes’s Agreement with EAL

Similarly, Dr. Fulton made a series of promises to Dr. Bames. Dr. Fulton promised that: (1) Dr. Bames would be able to work four days a week; (2) EAL would provide health insurance; (3) EAL would pay Dr. Bames on a straight collection basis; and (4) Dr. Bames would be brought on as a partner. Based on these promises, Dr. Bames rejected two other job offers.

On July 2, 2003, Dr. Bames started working at EAL. In October 2003, Dr. Fulton presented Dr. Barnes with a document entitled “Associateship Agreement.” Dr. Fulton told Dr. Bames that the agreement was “standard” and that Dr. Fulton’s lawyers wanted the document signed. Dr. Bames balked at signing the agreement because it did not mention the four-day work-week, health benefits, or partnership terms. Dr. Bames was also concerned about the inclusion of a non-compete provision. Dr. Fulton assured Dr. Barnes that all of the prior oral promises would be kept. At that time, Dr. Bames declined to sign the agreement.

In January 2004, Dr. Fulton again presented Dr. Barnes with the same “Associateship Agreement.” Dr. Bames again expressed her reservations regarding the missing terms in the contract. Dr. Fulton told Dr. Bames to sign the contract that day. Dr. Bames, believing she would be fired if she did not sign, signed the agreement. Notably, Dr. Barnes’s husband was in law school at the time so Dr. Bames was the sole provider for her family.

Working Environment at EAL and the Opening of SE

The working environment at EAL eventually soured. Dr. Neeser and Dr. Barnes both disapproved of Dr. Fulton’s management of EAL. They believed that Dr. Fulton belittled other staff members without cause. Dr. Neeser also had problems with Dr. Fulton’s husband, Ed De Veau (“Mr. De Veau”), who had assumed responsibility for monitoring insurance payments and payroll for EAL. Dr. Neeser noticed discrepancies between her actual pay and her production. At one point, Mr. De Veau refused to pay Dr. Neeser until the insurance company paid EAL. Thereafter, Mr. De Veau paid Dr. Neeser based on contribution rather than production. Further, on one occasion, Mr. De Veau verbally abused Dr. Neeser in front of the office staff.

In January 2004, Dr. Fulton requested that Dr. Neeser agree to change her payment type to contribution-based rather than production-based. Dr. Fulton emphasized that Dr. Neeser’s services were no longer needed because Dr. Bames was, by that time, under contract. Dr. Neeser signed the revised contract on March 11, 2004. Notably, Dr. Neeser was the sole provider for her family at that time because her husband had recently started his own dental practice.

In April 2004, Dr. Barnes and Dr. Neeser began to discuss their mutual dissatisfaction with the EAL workplace. They decided to open a practice together. In the fall of 2004, Dr. Neeser and Dr. Bames found a commercial space available in Sudbury, which was appropriate for an endodontics practice. They determined that the space was 8.2 miles from the closest point in Lexington. Thereafter, they pursued financing for their potential practice. Dr. Neeser’s and Dr. Barnes’s plans came to the attention of Dr. Fulton, who confronted them. Dr. Barnes informed Dr. Fulton that the two were planning to open an office together.

On September 25, 2004, Drs. Neeser, Bames, and Fulton discussed their future plans. During the meeting, Dr. Fulton informed Dr. Bames and Dr. Neeser that she would not offer them partnership in EAL. Dr. Bames and Dr. Neeser then offered to incorporate their new office as a satellite of EAL. Dr. Fulton rejected this proposal. On September 28, Dr. Fulton served Dr. Bames and Dr. Neeser with letters threatening legal action if they opened the new office at its proposed [679]*679location in Sudbury. In February 2005, Dr. Barnes and Dr. Neeser purchased the commercial space in Sudbury. On August 15, 2005, SE opened for business.

On March 7, 2005, EAL terminated Dr. Neeser, effective in ninety days. Subsequently, however, on March 15, Dr. Fulton blocked Dr.

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Bluebook (online)
20 Mass. L. Rptr. 677, Counsel Stack Legal Research, https://law.counselstack.com/opinion/endodontic-associates-of-lexington-inc-v-johnston-neeser-masssuperct-2006.