Falgoust v. Hart Eye Center, LLC

984 So. 2d 958, 2007 La.App. 3 Cir. 725, 2008 La. App. LEXIS 831, 2008 WL 2261460
CourtLouisiana Court of Appeal
DecidedJune 4, 2008
DocketCA 07-725
StatusPublished

This text of 984 So. 2d 958 (Falgoust v. Hart Eye Center, LLC) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Falgoust v. Hart Eye Center, LLC, 984 So. 2d 958, 2007 La.App. 3 Cir. 725, 2008 La. App. LEXIS 831, 2008 WL 2261460 (La. Ct. App. 2008).

Opinion

984 So.2d 958 (2008)

Dr. Donald FALGOUST
v.
HART EYE CENTER, LLC, et al.

No. CA 07-725.

Court of Appeal of Louisiana, Third Circuit.

June 4, 2008.
Rehearing Denied July 9, 2008.

*959 Albert Dale Clary, Attorney at Law, Baton Rouge, LA, for Defendants/Appellees Langley, Williams & Co., Daphne B. Clark.

James Buckner Doyle, Attorney at Law, Lake Charles, LA for Secondary Defendants/Appellants Hart Eye Center, LLC, Dr. William B. Hart.

David Harmon Hanchey, The Hanchey Law Firm, Lake Charles, LA, for Plaintiff/Appellant Dr. Donald Falgoust.

Court composed of ULYSSES GENE THIBODEAUX, Chief Judge, JOHN D. SAUNDERS, MARC T. AMY, MICHAEL G. SULLIVAN, BILLY HOWARD EZELL, Judges.

SAUNDERS, Judge.

This is a case involving the calculation of damages owed for breach of contract upon the termination of a business relationship between doctors. For the following reasons, we vacate the decision of the trial court regarding reimbursement owed, dismiss with prejudice the issue of damages, and affirm the trial court's ruling regarding its dismissal of the reconventional demand in the case at bar.

FACTS AND PROCEDURAL HISTORY:

Dr. Donald C. Falgoust (hereinafter "Dr. Falgoust"), a board certified ophthalmologist, began discussions in late 1998 to enter into a medical practice with Dr. William Hart (hereinafter "Dr. Hart") at his medical clinic, Hart Eye Center, LLC (hereinafter "HEC"), in Lake Charles, Louisiana. On June 1, 1999, Dr. Falgoust and Dr. Hart confected a Professional Services Agreement (hereinafter "the PSA"), in which Dr. Falgoust agreed to work at HEC, and in which the doctors set forth the terms of their business relationship.

In relevant part, the PSA reads as follows:

5. Payment to Company by Physician for Administration and Buy-in.
a. Subject to the adjustment in Subparagraph (c) below, Physician shall pay Company an amount equal to *960 15% of gross collections for administrative services and for the acquisition of an interest in the ownership of the Company . . .
. . . .
C. After the initial 12 months of this agreement, if Physician and Company agree to extend the term of this Agreement, Physician shall become a member of the Company. In such event, Physician shall continue to pay Company 15% of Physician's gross collections for an additional 48 months beginning on July 1, 2000 and continuing through June, 2004. After June 30, 2004, the percentage charged to Physician for administrative services and "buy-in" shall be reduced from 15% to 5% and all sums due by Physician for his membership interest in the Company shall be deemed fully paid and nonassessable. Nothing herein shall be deemed to restrict the ability of Physician to acquire additional membership interest in Company in accordance with the operating agreement.
. . . .
13. Payment Upon Termination. The Physician shall be paid net collections due after date of termination (by reason of death, discharge, disability, retirement or voluntary withdrawal) as provided below in this Agreement.
a. The "Net Collections" of a terminating Physician shall be the actual collections of accounts receivable, attributable to terminating Physician's Professional Services outstanding on the date of the termination, less the sums due by Physician as set forth in Sections 5 and 6. This computation shall be made in a manner consistent with Section 7.
i. All Amounts paid or to be paid to Physician under this Agreement shall also be reduced by the premiums due for the purchase by Company of a "tail" errors and omissions insurance policy for Physician with limits of not less than $100,000/$300,000 per occurrence and participation in the Louisiana Patient's Compensation Fund for Physician. Physician shall have the option to be included as a named insured under the provisions of said insurance policy; and
ii. All amounts to be paid to Physician under this Agreement shall be further reduced by any other debts owed by Physician to Company including but not limited to any amounts due Company for Physician's purchase of his capital interest in the Company as provided in subsection 5(c), (d), or (e).
. . . .
14. Non-Competition Agreement.
a. Except as provided herein, if Physician and Company terminate this agreement with or without cause on or before July 1, 2004, Physician shall not, for a period of two (2) years from and after the date of termination of this Agreement, directly or indirectly, own any interest in, manage, operate, be employed by, control or participate to any extent to the ownership, management, operation or control of, or be connected in any manner with, any business which in any manner competes with Company, its successors, assigns and/or joint venturers in the practice of medicine in the specialty of opthalmology or optometry within Calcasieu Parish. After July 1, 2004 this condition shall continue to apply to Physician unless this agreement is terminated by Company voluntarily *961 and without cause. For purposes of this non-competition agreement the term "Physician" shall also include Donald C. Falgoust, individually.
b. In the event of a breach of this non-competition agreement, Company shall be entitled to injunctive relief against Physician for such breach, which injunctive relief shall be cumulative to other remedies and in addition to any other relief ordinarily available, and shall not be construed as an exclusive remedy or relief[.]
. . . .
16. Complete Agreement. This Agreement constitutes the full, entire, and complete employment agreement between the parties hereto and expressly supersedes any prior agreement concerning the matters covered hereby. This agreement may be amended and any right or remedy may be waived, but only by the express terms and provisions of a written amendment or waiver. Other written agreements executed by both parties are part of the entire legal relationship between the parties to this Employment Contract.

The parties continued to operate under the terms of the PSA until it was terminated by Dr. Falgoust on May 15, 2002. During that time, Dr. Falgoust made "buy-in" payments under the PSA totaling $211,201.00. On July 18, 2002, Dr. Falgoust filed suit for breach of contract against HEC and Dr. Hart in the 14th Judicial District Court in Calcasieu Parish, Louisiana, seeking reimbursement of the total amount of his "buy-in" payments. Dr. Hart and HEC subsequently filed a reconventional demand against Dr. Falgoust seeking damages for, among other things, unfair trade practices and breach of a non-competition agreement.

This case was previously before this court on an appeal by Dr. Falgoust from a summary judgment dismissing all of his claims. See Falgoust v. Hart Eye Center, LLC, 04-40 (La.App. 3 Cir. 5/12/04), 875 So.2d 139. There, we reversed summary judgment and remanded the case for a trial on the merits. On remand, Judge Wilford Carter) hereinafter "Judge Carter") found in Dr. Falgoust's favor after a bench trial on December 11, 2006. Judge Carter awarded Dr. Falgoust $31,598.00 in damages and dismissed the reconventional demand of Dr. Hart and HEC. A written judgment in accordance with Judge Carter's ruling was signed on February 22, 2007. Dr.

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Bluebook (online)
984 So. 2d 958, 2007 La.App. 3 Cir. 725, 2008 La. App. LEXIS 831, 2008 WL 2261460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/falgoust-v-hart-eye-center-llc-lactapp-2008.