Eutiva Thomas, the Providence Home Health Services, Inc., and the Providence Hospice, Inc. v. a Med Management, Inc.

CourtCourt of Appeals of Texas
DecidedSeptember 3, 2020
Docket01-19-00564-CV
StatusPublished

This text of Eutiva Thomas, the Providence Home Health Services, Inc., and the Providence Hospice, Inc. v. a Med Management, Inc. (Eutiva Thomas, the Providence Home Health Services, Inc., and the Providence Hospice, Inc. v. a Med Management, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Eutiva Thomas, the Providence Home Health Services, Inc., and the Providence Hospice, Inc. v. a Med Management, Inc., (Tex. Ct. App. 2020).

Opinion

Opinion issued September 3, 2020

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-19-00564-CV ——————————— EUTIVA THOMAS, THE PROVIDENCE HOME HEALTH SERVICES, INC., AND THE PROVIDENCE HOSPICE, INC., Appellants V. A*MED MANAGEMENT, INC., Appellee

On Appeal from the 56th District Court Galveston County, Texas Trial Court Case No. 19-CV-1003

MEMORANDUM OPINION

Appellants, Eutiva Thomas and the Providence Home Health Services, Inc.,

and the Providence Hospice, Inc. (“Providence”), appeal the trial court’s order that

granted a temporary injunction in favor of appellee, A*Med Management, Inc. (“A*Med”).1 In three issues on appeal, appellants argue that the trial court abused

its discretion in granting the temporary injunction because (1) the record contains

no evidence of an imminent irreparable injury; (2) the injunction lacks specificity;

and (3) a non-compete agreement is void or, in the alternative, its provisions are

unenforceable.

We affirm.

Background

A*Med offers home healthcare services, including home and community

hospice care, to patients across Texas. Thomas had been working for A*Med since

2010, first as a community relations coordinator and then as a business

development manager, marketing A*Med’s services in Galveston. On March 19,

2019, Thomas signed a non-compete agreement that limited her ability to compete

with A*Med or solicit A*Med’s referral sources after her employment ended.

Shortly after Thomas signed the agreement, A*Med reduced her ability to market

A*Med’s services. In May 2019, Thomas resigned from A*Med and started

working for Providence, a competitor that offers similar healthcare services as

A*Med.

1 This is an accelerated interlocutory appeal pursuant to Texas Civil Practice and Remedies Code section 51.014(a)(4). TEX. CIV. PRAC. & REM. CODE § 51.014(a)(4). 2 On June 3, 2019, A*Med filed an original petition and application for

temporary restraining order and application for temporary injunction and

permanent injunction against Thomas and Providence, alleging that Thomas

breached the non-compete agreement and that Providence tortiously interfered with

its contract. A*Med sought actual and exemplary damages, attorney’s fees, and

injunctive relief pursuant to section 15.51 of the Texas Business and Commerce

Code2 and the common law.

The trial court issued a temporary restraining order on June 3, 2019,

enjoining (1) Thomas and Providence from interfering with A*Med customer and

employee relationships; (2) Thomas from working for Providence in Galveston

County; (3) Providence from interfering with Thomas’s contractual obligations to

A*Med; and (4) Providence from receiving or using any confidential information

from Thomas.

On July 1, 2019, Providence filed an original answer and counterclaim for

tortious interference with an existing contract. Thomas also answered, generally

denying the claims and counterclaiming for tortious interference with an existing

contract. Thomas claimed that on March 19, 2019, she was shown only the

signature page of the non-compete agreement.

2 See TEX. BUS. & COM. CODE § 15.51. 3 Thomas and Providence filed a motion to dissolve the TRO and a response

to the application for temporary injunctive relief. Thomas and Providence argued,

“A*Med has failed to show and cannot show that it will suffer imminent,

irreparable harm. A*Med seeks to enforce an invalid contract, and has failed to

present any evidence that any damage it would suffer as a result of Mrs. Thomas’

employment by Providence could not be compensated in monetary terms.”

At the temporary injunction hearing held on July 12, 2019, Joe Hinojosa,

A*Med’s administrator for A*Med Hospice, testified that he countersigned the

confidentiality non-compete and non-solicitation agreement. Hinojosa agreed that

in exchange for having employees sign the non-compete, A*Med provided

confidential information, which included referral sources and how A*Med

conducted its business. Hinojosa testified that A*Med paid for Thomas’s referral

sources by reimbursing her expenses and that Thomas was generating 5 to 10

referrals a week. After she resigned, Hinojosa stated that the number of referrals

from Thomas’s territory decreased to zero to three referrals a week. Hinojosa

further testified that he had been in the health care business since 1992 and a drop

in referrals after an employee leaves was attributed to the employee taking the

referrals with them.

On cross-examination, Hinojosa agreed that Thomas was not happy that a

variety of UTMB facilities were being assigned to someone else. From the time

4 that Thomas signed the non-compete on March 19 through the time that she

formally resigned on May 2, Hinojosa testified that she attended “Monday morning

meetings where they discussed referral sources, opportunities for growth for the

company and so on.” Hinojosa agreed that for the referrals that have dropped since

Thomas left, he did not know where the patients went, did not know if they went to

Providence, and did not know if Thomas diverted the referrals to somewhere else.

He agreed that he assumed that when someone leaves, they take referrals with

them, but he had no information of whether that had happened here. When asked

if “any sort of loss that you have experienced in terms of volume, that would be

attributable to Mrs. Thomas’s leaving your company,” Hinojosa answered, “Yes.”

Teresa Clark, the community relations coordinator for A*Med, testified that

after Thomas left, she learned from case managers that Thomas had been at UTMB

Galveston. Clark recalled a Community Assistance Providers of Galveston County

(CAPGAL)3 event where she saw Providence marketing materials on the tables.

Clark also identified a photo she took that depicted Providence marketing materials

and Thomas’s Providence business card on a UTMB case manager’s desk after

Thomas left A*Med. On cross-examination, Clark said she received the Galveston

3 CAPGAL is a non-profit entity that seeks to provide assistance to less fortunate residents of Galveston County.

5 territory after Thomas resigned, and she agreed that she did not see Thomas

actually place marketing materials on the tables at the CAPGAL May event.

Nicksandra Hall testified that she attended the CAPGAL event on May 22

and also saw Providence marketing materials. Hall testified that on May 31, she

saw Thomas on the 11th floor of UTMB Galveston and the only reason to visit that

floor was for marketing purposes. Hall identified a photo she took of Thomas in

the UTMB Galveston parking garage on the same day that she saw her on the 11th

floor. Hall testified that she was aware that Thomas had visited case managers,

and she testified that Thomas’s key referral services were not sending her any

business.

Thomas testified that that she started working for A*Med in 2009. At the

time she resigned, her main scope of responsibility included home health and

hospice, which she marketed in Galveston County to case managers at UTMB

Galveston and other healthcare offices. Thomas testified that she was asked to

sign a non-compete agreement on March 18, 2019 and that she signed the back

page of the non-compete. She agreed that she had signed an older agreement, but

A*Med wanted her to sign a new agreement because it lost the older agreement.

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