Hanlon v. Morrissey

58 Pa. D. & C. 133, 1946 Pa. Dist. & Cnty. Dec. LEXIS 292
CourtPennsylvania Court of Common Pleas, Northampton County
DecidedMay 28, 1946
Docketno. 1
StatusPublished

This text of 58 Pa. D. & C. 133 (Hanlon v. Morrissey) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Northampton County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hanlon v. Morrissey, 58 Pa. D. & C. 133, 1946 Pa. Dist. & Cnty. Dec. LEXIS 292 (Pa. Super. Ct. 1946).

Opinion

Frack, J.,

Dr. C. R. Hanlon filed a bill in equity against Dr. E. James Morrissey for injunctive relief on the ground that defendant violated and is violating a restrictive covenant not to practice in Northampton or Lehigh Counties as a physician, surgeon or medical practitioner, except as chief surgeon at the Bethlehem plant of Bethlehem Steel Corporation. The covenant was included in an agreement dated February 1,1941, wherein defendant, a practicing physician specializing in orthopedic surgery, sold to plaintiff his office and medical equipment, fixtures, supplies, practice and good will for $5,880. For five years and two months defendant maintained no office for the practice of medicine or surgery and did not practice medicine or surgery in any capacity except as chief surgeon at the Bethlehem plant of Bethlehem Steel Corporation. On April 4,1946, defendant again opened [134]*134his own professional office, which he admits is for the purpose of practicing orthopedic surgery, and is in competition with the practice of plaintiff who also specializes in orthopedic surgery. Defendant admits all allegations in plaintiff’s bill of complaint, subject to certain legal defenses fully set forth in our discussion, so that the covenant is averred to be unenforcible.

From the admissions in the pleadings and from the testimony, we make the following

Findings of fact

1. Plaintiff is a duly licensed medical practitioner, specializes in orthopedic surgery, is certified by the American Medical Association as an orthopedic surgeon, and has engaged in the practice of his profession at Room 405 Bethlehem Trust Building, Bethlehem, Pa., since February 1, 1941.

2. Defendant is a medical practitioner duly licensed to practice throughout the Commonwealth of Pennsylvania, and duly licensed by the National Board of Medical Examiners qualifying him to practice in all States of the United States, is certified by the American Medical Association as an orthopedic surgeon, and specializes in orthopedic surgery.

3. Prior to February 1, 1941, defendant practiced medicine as an orthopedic surgeon at Room 405 Bethlehem Trust Building, Bethlehem, Pa.

4. Some time prior to February 1, 1941, defendant was appointed chief surgeon, Bethlehem plant, of Bethlehem Steel Corporation, effective February 1, 1941.

5. Prior to February 1, 1941, defendant contacted plaintiff, who was then residing in and practicing his profession, in Wilkes-Barre, Pa., with the result that plaintiff visited defendant’s office, at which time defendant offered to sell his office and medical equipment, fixtures and supplies for $880 and his practice and [135]*135good will for $5,000; upon acceptance by plaintiff of defendant’s offer, defendant caused to be prepared by his then counsel a written contract which was duly executed by the parties on February 1, 1941. There is no issue involved in this case that the contract was not a free and voluntary act of defendant and that defendant did not understand its terms.

6. Said agreement dated February 1, 1941, recites that defendant transferred his office and medical equipment, fixtures and supplies to plaintiff by bill of sale bearing even date; and the agreement provides that defendant “sells and assigns” to plaintiff his practice as an orthopedic surgeon and the good will thereof “to have and to hold the same unto the party of the second part (plaintiff) absolutely” with the further covenant that “the party of the first part (defendant) hereby covenants with the party of the second part that he will introduce him to all the patients of the party of the first part and do all in his power to procure the benefit of the said practice to the party of the second part and to insure his success therein and that the party of the first part will not at any time hereafter in Northampton or Lehigh Counties practice as a physician, surgeon or medical practitioner in any capacity or attend to any of his past or present patients except as Chief Surgeon, Bethlehem plant of Bethlehem Steel Corporation”. The consideration of $5,880 was agreed to be payable “in six yearly payments as follows: $1,000. to be paid at the expiration of the second, third, fourth, fifth and sixth years from date hereof, and $880. at the expiration of the seventh year from date hereof without interest . . .”.

7. At the time defendant discussed with plaintiff the proposed sale of his practice and the good will thereof and at the time of making the agreement for the sale thereof together with his office and medical equipment, fixtures and supplies, he advised plaintiff that [136]*136his practice covered Lehigh and Northampton Counties ; that these counties should be incorporated in the contract because that was the area over which he did business; he was at the time consulting orthopedic surgeon at Easton Hospital, Easton, Pa., was on the adjunct staff at St. Luke’s Hospital, Bethlehem, Pa., was visiting surgeon at the Allentown General Hospital and Sacred Heart Hospital, both at Allentown, Pa., and did orthopedic surgery at St. Luke’s Hospital, the Easton Hospital, Sacred Heart and other Allentown hospitals and he treated at said hospitals and at his office patients from the surrounding territory consisting of Lehigh and Northampton Counties.

8. Defendant on February 1,1941, assumed his duties as chief surgeon, Bethlehem plant of Bethlehem Steel Corporation, and plaintiff at the same time, for the first time, commenced to practice his profession in Lehigh and Northampton Counties, and is presently so engaged, with his office at Room 405 Bethlehem Trust Building, Bethlehem, Pa.

9. Plaintiff is connected in the same or similar capacity with all the hospitals with which defendant had been connected as aforesaid, follows orthopedic surgery, performs operations at the same hospitals, and treats patients from the overall area of Lehigh and Northampton Counties, with his patients coming from every city, and practically all boroughs and townships located in each of said counties. Plaintiff renders throughout the restricted area the same type of services defendant had formerly rendered throughout the same area.

10. Plaintiff performed all the terms, covenants and conditions required by him to be performed in the aforesaid agreement and defendant sets up no defense in any breach on the part of plaintiff.

11. Subsequent to February 1,1941, defendant performed all the terms, covenants and conditions of said [137]*137agreement required of him to he performed, until April 4, 1946, at which time defendant opened an office for the practice of orthopedic surgery at New and Market Streets, Bethlehem, Northampton County, Pa., at which office defendant has actively practiced orthopedic surgery since said date; and defendant has since April 4, 1946, carried on the practice of orthopedic surgery within the counties of Lehigh and Northampton in the Commonwealth of Pennsylvania.

12. Defendant discontinued his duties as chief surgeon, Bethlehem plant of Bethlehem Steel Corporation on April 20, 1946, but he is still employed as a member of the medical staff at the medical department of the Bethlehem plant by said corporation.

13. Although plaintiff and defendant orthopedic surgeons are certified or approved by the American Medical Association as specialists, orthopedic surgery is performed by general surgeons and general practitioners in the area herein involved. Any general practitioner may practice orthopedics and perform orthopedic surgery.

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Bluebook (online)
58 Pa. D. & C. 133, 1946 Pa. Dist. & Cnty. Dec. LEXIS 292, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanlon-v-morrissey-pactcomplnortha-1946.