Health Call of Detroit v. Atrium Home & Health Care Services, Inc

706 N.W.2d 843, 268 Mich. App. 83
Michigan Court of Appeals·Decided November 29, 2005·No. Docket 244633·Published·Cited by 134 cases

Opinions

MURPHY, J.

Pursuant to MCR 7.215(J)(3), this special panel was convened to resolve a conflict between this Court’s opinion in Environair, Inc v Steelcase, Inc, 190 Mich App 289; 475 NW2d 366 (1991), and the recently issued opinion in Health Call of Detroit v Atrium Home & Health Care Services, Inc, 265 Mich App 79; 695 NW2d 337 (2005), vacated in part 265 Mich App 801 (2005) (vacating part III of the opinion pursuant to MCR 7.215[J][5]). In accordance with MCR 7.215(J)(1), the prior Health Call panel indicated that it was required to follow the precedent of Environair in regard to that panel’s holding limiting recovery to nominal damages for tortious interference claims arising from the termination of an at-will contract unrelated to employment. Health Call, supra at 84-85. Were it not for MCR 7.215(J)(1) and the holding in Environair, the Health Call panel would not have limited damages on remand; thus, the panel invoked MCR 7.215(J)(2). Health Call, supra at 80, 86-87. We conclude that a blanket rule limiting recovery to nominal damages as a matter of law in all actions arising out of or related to [86] the termination of at-will contracts is not legally sound, because there may exist factual scenarios in which there is a tangible basis on which future damages1 may be assessed that are not overly speculative despite the at-will nature of the underlying contract. The case before us today presents such a situation when viewing the evidence in a light most favorable to plaintiff for purposes of summary disposition. Therefore, we resolve the conflict in favor of the analysis and reasoning in Health Call, and, to the extent that Environair is read as limiting recovery to nominal damages as a matter of law in all cases in which there is a request for damages arising out of or related to the termination of at-will contracts such as those involved here and in Environair, it is overruled.. Accordingly, we reverse and remand to the trial court without limiting, as a matter of law, plaintiffs recovery to nominal damages.

Because the special order vacated only part III of the opinion in Health Call, parts I and II, which address the facts and principles of summary disposition, remain intact. For ease of reference and continuity, we shall incorporate parts I and II into this opinion by way of quotation and then proceed with our own independent analysis in part III.

i

Plaintiff is a Michigan corporation that provides nursing and medical services for home care. Individual defendants, Katrina Johnson, Dwight Robinson, and Damita Borner, who are licensed practical nurses, entered at-will independent contractor agreements with plaintiff in which they agreed to provide home nursing services to plaintiffs [87] clients. The defendant nurses’ respective contracts contained a noncompetition clause, effective for two years following the termination of the independent contractor agreements. As relevant to the instant case, Wendy Williams, the mother of Cierra Harris, an infant, entered into an at-will contract with plaintiff for the provision of twenty-four hour home nursing services to Harris. The defendant nurses provided the contracted services to Harris under the independent contractor agreements between the defendant nurses and plaintiff.
Plaintiff alleges that defendant Atrium Home & Health Care Services, Inc. (Atrium), which was also in the business of providing home nursing care services, contacted defendant Borner and urged her to terminate her contract with plaintiff and persuade defendants Johnson and Robinson to also terminate their contracts with plaintiff, in order that Atrium could thereafter provide home nursing care services to Harris. Plaintiff further alleges that the defendant nurses terminated their respective independent contractor agreements with plaintiff, subsequently contracted with Atrium, and continued to provide home nursing care services to Harris after leaving plaintiffs employ and contracting with Atrium.
In its complaint, plaintiff alleged in count I that Atrium tortiously interfered with plaintiffs contract with Borner, that Borner and Atrium tortiously interfered with plaintiffs contracts with Johnson and Robinson, and that Borner and Atrium tortiously interfered with plaintiffs contract, business relationship, and expectancies with Williams concerning Harris. Count II alleged that the defendant nurses breached paragraph 12 of their respective contracts, which paragraph precluded solicitation of, or competition with, plaintiffs clients for two years after the expiration of their respective at-will agreements. Defendants moved for partial summary disposition pursuant to MCR 2.116(0(10), asserting that plaintiff as a matter of law was limited to a recovery of nominal damages on its claims.
On count I, the trial court granted summary disposition in favor of Borner with regard to plaintiffs claim of [88] tortious interference with the Harris contract, but permitted the tortious interference claim to proceed against Atrium. Regarding count II, the trial court granted summary disposition in favor of the defendant nurses “to the extent” that “the damages [claimed by plaintiff] are measured by the loss of the [Harris] contract.” The trial court determined that such damages were speculative because they were based on plaintiffs loss of an at-will contract to provide services to Harris. The parties stipulated the dismissed of all remaining claims without prejudice, and this appeal ensued. [.Health Call, supra at 80-82.]

II

On appeal, a trial court’s grant or denial of summary disposition is reviewed de novo. First Pub Corp v Parfet, 468 Mich 101, 104; 658 NW2d 477 (2003). This Court must review the record in the same manner as must the trial court to determine whether the movant was entitled to judgment as a matter of law. Morales v Auto Owners Ins Co, 458 Mich 288, 294; 582 NW2d 776 (1998). “A motion for summary disposition under MCR 2.116(0(10) tests whether there is factual support for a claim.” Shepherd Montessori Ctr Milan v Ann Arbor Charter Twp, 259 Mich App 315, 324; 675 NW2d 271 (2003). “When deciding a motion for summary disposition, a court must consider the pleadings, affidavits, depositions, admissions and other documentary evidence submitted in the light most favorable to the nonmoving party.” Id. [Id. at 82-83.]

III

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Health Call of Detroit v. Atrium Home & Health Care Services, Inc, 706 N.W.2d 843, 268 Mich. App. 83 (Mich. Ct. App. 2005).

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