Gulfport OB-GYN, P.A. v. Dukes, Dukes, Keating & Faneca, P.A.

CourtMississippi Supreme Court
DecidedAugust 29, 2019
Docket2018-CA-00514-SCT
StatusPublished

This text of Gulfport OB-GYN, P.A. v. Dukes, Dukes, Keating & Faneca, P.A. (Gulfport OB-GYN, P.A. v. Dukes, Dukes, Keating & Faneca, P.A.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gulfport OB-GYN, P.A. v. Dukes, Dukes, Keating & Faneca, P.A., (Mich. 2019).

Opinion

IN THE SUPREME COURT OF MISSISSIPPI

NO. 2018-CA-00514-SCT

GULFPORT OB-GYN, P.A.

v.

DUKES, DUKES, KEATING & FANECA, P.A. AND JE’NELL B. BLUM

DATE OF JUDGMENT: 03/28/2018 TRIAL JUDGE: HON. JAMES D. BELL TRIAL COURT ATTORNEYS: DONALD C. DORNAN, JR. PHILIP W. THOMAS COURT FROM WHICH APPEALED: HARRISON COUNTY CIRCUIT COURT ATTORNEY FOR APPELLANT: PHILIP W. THOMAS ATTORNEYS FOR APPELLEES: DONALD C. DORNAN, JR. STEPHANIE GEE BEAVER NATURE OF THE CASE: CIVIL - LEGAL MALPRACTICE DISPOSITION: AFFIRMED - 08/29/2019 MOTION FOR REHEARING FILED: MANDATE ISSUED:

EN BANC.

ISHEE, JUSTICE, FOR THE COURT:

¶1. In this legal-malpractice case, Gulfport OB-GYN contends that Dukes, Dukes,

Keating, and Faneca negligently drafted a noncompetition covenant for one of its physicians,

leading to a substantial financial loss when the physician left to start her own practice. The

circuit court granted summary judgment to the defendants after finding Gulfport OB-GYN

had failed to produce sufficient evidence that it would have received a better deal but for the attorneys’ alleged negligence, i.e., Gulfport OB-GYN failed to prove that the alleged

negligence caused it damages. We agree and affirm.

FACTS

¶2. Gulfport OB-GYN is a professional association of physicians specializing in

obstetrical and gynecological care. In 2008, it hired the law firm Dukes, Dukes, Keating &

Faneca, P.A., to assist in negotiating the hiring of Dr. Donielle Daigle and to prepare an

employment agreement for her. The attorney primarily assigned to the matter was Ja’Nell

Blum. The negotiations culminated in Dr. Daigle’s hiring, subject to an employment

agreement prepared by Blum and executed by both principals. The employment agreement

contained a noncompetition covenant with substantially the same language Gulfport OB-

GYN had accepted in previous employment agreements prepared by another law firm. The

noncompetition covenant in Dr. Daigle’s agreement read, in relevant part,

Covenant Not To Compete.

a. Employee agrees that for a period three (3) years following termination of her employment by the Employer, regardless of cause (subject to Section 7(d)), she will not engage in any medical practice or perform any service directly or indirectly in competition with the medical practice of Employer, to include hospital staff positions, or have any interest in any capacity whatsoever in any enterprise that engages in such medical practice within a radius of fifty (50) miles from the Memorial Hospital at Gulfport, without the express written consent of the Employer. Further, during said three (3) year period, even if in compliance with the above fifty (50) mile radius provision, Employee agrees not to directly solicit, which includes, but is not limited to, direct mailings, emails, or telephone calls, either by Employee or any other person or entity acting on Employee’s behalf, any patient who has been served by the Employer within three (3) years prior to the date her employment with Employer ends, whether by termination or resignation, or mutual agreement.

2 The agreement provided that under certain circumstances, enforcement of the noncompetition

covenant could be waived in exchange for $150,000 in liquidated damages to Gulfport OB-

GYN.

¶3. Five years later, Dr. Daigle and another physician left Gulfport OB-GYN to establish

their own practice. They sued Gulfport OB-GYN for unpaid compensation and sought a

declaratory judgment that the noncompetition covenant was unenforceable. The departing

physicians ultimately prevailed, with the chancery court holding the noncompetition covenant

not applicable to Dr. Daigle because she left voluntarily and was not “terminated by the

Employer.” The chancery court decision was initially appealed, but the dispute was later

settled through mediation when Gulfport OB-GYN agreed to pay Dr. Daigle $425,000.

Gulfport OB-GYN then filed this legal-malpractice suit against Blum and her firm.

¶4. Ultimately, the circuit court granted summary judgment to the defendants after finding

that Gulfport OB-GYN had failed to produce evidence Dr. Daigle would have accepted the

employment agreement with a more comprehensive noncompetition covenant. Gulfport OB-

GYN has appealed from that judgment.

STANDARD OF REVIEW

¶5. This Court reviews a grant or denial of summary judgment de novo. Hardy v. Brock,

826 So. 2d 71, 74 (Miss. 2002). “We view the evidence ‘in the light most favorable to the

party against whom the motion has been made.’” Olier v. Bailey, 164 So. 3d 982, 986 (Miss.

2015) (quoting Double Quick, Inc. v. Moore, 73 So. 3d 1162, 1165 (Miss. 2011)). On the

3 other hand, the duty of care owed by Blum and her firm to their client is one of law, which

this Court reviews de novo. Donald v. Amoco Prod. Co., 735 So. 2d 161, 174 (Miss. 1999).

DISCUSSION

¶6. The legal malpractice claim here alleges negligence and sounds in tort. The four

elements of a tort claim are “duty, breach of duty, causation between the breach of the duty

and the injury, and actual damage.” Bullard v. Guardian Life Ins. Co of Am., 941 So. 2d

812, 815 (Miss. 2006). The dispute in today’s case is over causation. Under Mississippi law,

causation has two aspects: the alleged negligent conduct must be shown to have caused the

injury, in fact, and it must be shown to be the injury’s legal or proximate cause. Norman v.

Anderson Reg’l Med. Ctr., 262 So. 3d 520, 529 (Miss. 2019). Both must be shown to

recover on a claim of negligence. Id.

¶7. In a legal-malpractice action for a breach of the duty of care, the plaintiff “must

establish proximate cause by the so-called ‘trial-within-a-trial’ test.” Crist v. Loyacono, 65

So. 3d 837, 842 (Miss. 2011). The plaintiff must show that but for her attorney’s negligence,

she would have been successful in the underlying action. Id. (citing Wilbourn v. Stennett,

Wilkinson & Ward, 687 So. 2d 1205, 1215 (Miss. 1996)). Proof of causation is always

required when professional negligence is alleged. Id. In the transactional context, there may

not be a trial or “case,” but the same principles apply: causation “turns on whether the

attorney’s conduct was the but-for cause of the failure to obtain a more favorable result rather

than success or failure in litigation.” Frederick v. Wallerich, 907 N.W.2d 167, 173 (Minn.

2018) (emphasis omitted); see also George S. Mahaffey, Jr., Cause-In-Fact and the

4 Plaintiff’s Burden of Proof with Regard to Causation and Damages in Transactional Legal

Malpractice Matters: The Necessity of Demonstrating the Better Deal, 37 Suffolk U.L. Rev.

393, 436-37 (2004). Thus, “[i]f the alleged error is the failure to obtain or advise of a

provision, concession or benefit, the client must prove that the other party would have

agreed.” 3 Ronald E. Mallen and Jeffrey M. Smith, Legal Malpractice § 24.5 (updated

2019), Westlaw.

¶8. Commentators have noted that this rule is followed by a substantial majority of courts.

See John M. Palmeri, Franz Hardy, Nicole Salamander Irby, Better Deal or No Deal:

Causation in Transactional Malpractice Cases, 42 Colo. Law. 51, 51 (December 2013)

(citing, “for example,” Viner v.

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