General Medicine of Louisiana Pc v. George Singletary Md

CourtMichigan Court of Appeals
DecidedFebruary 12, 2019
Docket340298
StatusUnpublished

This text of General Medicine of Louisiana Pc v. George Singletary Md (General Medicine of Louisiana Pc v. George Singletary Md) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Medicine of Louisiana Pc v. George Singletary Md, (Mich. Ct. App. 2019).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

GENERAL MEDICINE OF LOUISIANA, P.C., UNPUBLISHED February 12, 2019 Plaintiff-Appellee,

v No. 340298 Oakland Circuit Court GEORGE SINGLETARY, M.D., LC No. 2016-153535-CB

Defendant-Appellant.

Before: GLEICHER, P.J., and STEPHENS and O’BRIEN, JJ.

PER CURIAM.

This breach of contract case presents a preliminary question: which state’s law applies? The plaintiff, a Louisiana professional service corporation, has sued its former Louisiana employee in a Michigan court. Plaintiff’s parent corporation is located in Michigan, and the parties’ contract included Michigan forum-selection and choice-of-law clauses. But under Michigan’s conflict-of-laws rules, a choice-of-law provision is not enforced if doing so conflicts with a fundamental policy of a state with a materially greater interest in the outcome. Under Louisiana law, the contract’s choice-of-law and forum-selection clauses are unenforceable. Given that all of the relevant events in this case occurred in Louisiana, that state has an interest superior to Michigan’s. When the forum-selection clause is taken out of the equation, it is clear that Louisiana presents a more reasonably convenient forum for trial of this dispute. Accordingly, we reverse the circuit court’s decision to the contrary and remand for entry of summary disposition in defendant’s favor.

I. BACKGROUND

In 2010, General Medicine of Louisiana, P.C. (GMLP) hired Dr. George Singletary to provide medical care in certain Louisiana nursing home and long-term care facilities. Singletary’s original contract term was 18 months. Thereafter, the contract automatically renewed for one-year terms unless Singletary gave GMLP 180 days’ notice that he did not intend to renew the relationship. In April 2016, in the middle of a contract term, Singletary announced his intent to resign; he stopped working on July 10, 2016. In the meantime, GMLP filed suit in Oakland Circuit Court for breach of contract and anticipatory breach. GMLP chose a Michigan forum based on the following provisions in Singletary’s employment contract:

10.3 Choice of Forum. The parties agree that all actions arising directly or indirectly out of this Agreement shall be filed only in the Circuit Court for the County of Oakland, State of Michigan, and the parties hereby irrevocably consent to the personal jurisdiction of that Court over the parties to this Agreement.

10.4 Governing Law. This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of Michigan.

GMLP’s parent corporation, General Medicine, P.C., is located in Oakland County.

GMLP and Singletary filed competing motions for summary disposition. GMLP asserted that there was no question that Singletary breached his employment contract, entitling it to relief. Singletary contended that the Michigan court lacked personal jurisdiction over him, that the action was brought in an improper venue, and the forum was not convenient. Singletary asserted that Louisiana law applied despite the choice-of-law provision in the contract and that Louisiana law prohibited the enforcement of forum-selection and choice-of-law provisions in employment contracts. In response to GMLP’s summary disposition motion, Singletary presented evidence that he had been disabled from working, excusing his early termination of the contract.

The circuit court denied GMLP’s summary disposition motion, finding a question of fact regarding Singletary’s condition that could have excused his termination of the contract. The court also denied Singletary’s motion to dismiss based on the contractual forum-selection and choice-of-law provisions, as well as Michigan law upholding the enforceability of such provisions. Because the contract afforded the court with personal jurisdiction over both parties, the court applied MCL 600.745(2), which provides:

If the parties agreed in writing that an action on a controversy may be brought in this state and the agreement provides the only basis for the exercise of jurisdiction, a court of this state shall entertain the action if all the following occur:

(a) The court has power under the law of this state to entertain the action.

(b) This state is a reasonably convenient place for the trial of the action.

(c) The agreement as to the place of the action is not obtained by misrepresentation, duress, the abuse of economic power, or other unconscionable means.

(d) The defendant is served with process as provided by court rules.

The court observed that for personal jurisdiction purposes, the sole point of contention was subsection (b): whether Michigan was a reasonably convenient place for trial. Michigan met that standard, the court ruled, because by executing a contract with a choice-of-forum clause, a party usually waives any complaint that the chosen forum is inconvenient. The court also found

-2- that Michigan was a reasonably convenient forum based on the forum non conveniens factors listed in Cray v Gen Motors Corp, 389 Mich 382; 207 NW2d 393 (1973). GMLP’s essential business operations and pertinent records are located in Oakland County, the court observed, and testimony from Louisiana residents could be presented by de bene esse depositions or video conferencing. Since the action concerns breach of contract, it was not necessary for the court to be close to the incident which gave rise to the lawsuit. While Michigan might not be the most convenient forum in which to try the action, the court found that it was a reasonably convenient forum. Accordingly, the circuit court decided to “enforce the parties’ clear intent as expressed in their written contract and deny Defendant’s motion to dismiss for lack of personal jurisdiction.”

The court rejected Singletary’s motion to dismiss on forum non conveniens grounds based on the same reasoning. And the court found that Singletary waived any objection to venue by failing to file a motion to change venue in response to the complaint as required by MCR 2.221(A). Finally, the court rejected Singletary’s argument that the choice-of-law provision should not be enforced, explaining:

Michigan’s interests mandate that Michigan law be applied for the reasons that the parties specifically contracted for Michigan law to govern the enforcement of the Employment Agreement. Again, the court notes that the parties knowingly entered into an Employment Agreement that contains a choice of law provision that identifies Michigan law as the governing law. Michigan public policy favors choice of law provisions and so the court finds that Michigan law shall be applied in this matter.

Singletary filed an application for leave to appeal the court’s rulings regarding venue, forum non conveniens, and choice of law in this Court. We granted the application. Gen Med of Louisiana PC v George Singletary, MD, unpublished order of the Court of Appeals, entered February 22, 2018 (Docket No. 340298).1

II. LOUISIANA LAW APPLICABLE

The initial question we confront is whether Michigan or Louisiana law applies in this lawsuit. The order in which we consider the issues presented is critical to the ultimate resolution of this appeal. If Louisiana law applies under Michigan’s choice-of-law principles, the “governing law” provision in the contract evaporates. Furthermore, under Louisiana law, forum- selection clauses contained in employment contracts are “null and void.” La Rev Stat § 23:921(A)(2). Absent the forum-selection clause, the question is whether Michigan is a more convenient location for trial than Louisiana.

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General Medicine of Louisiana Pc v. George Singletary Md, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-medicine-of-louisiana-pc-v-george-singletary-md-michctapp-2019.