HEALTH SERVICES OF CENTRAL GEORGIA, INC. v. FADY S. WANNA

CourtCourt of Appeals of Georgia
DecidedOctober 17, 2024
DocketA24A0909
StatusPublished

This text of HEALTH SERVICES OF CENTRAL GEORGIA, INC. v. FADY S. WANNA (HEALTH SERVICES OF CENTRAL GEORGIA, INC. v. FADY S. WANNA) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
HEALTH SERVICES OF CENTRAL GEORGIA, INC. v. FADY S. WANNA, (Ga. Ct. App. 2024).

Opinion

FIRST DIVISION BARNES, P. J., GOBEIL and PIPKIN, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed. https://www.gaappeals.us/rules

October 17, 2024

In the Court of Appeals of Georgia A24A0909, A24A0910. HEALTH SERVICES OF CENTRAL GEORGIA, INC. et al. v. WANNA; and vice versa.

GOBEIL, Judge.

This is the second appearance of this matter before this Court, which concerns

a dispute between the parties over Fady S. Wanna, M.D.’s contracts governing his

employment with Health Services of Central Georgia, Inc. (“Health Services”) and

Navicent Health, f/k/a Central Georgia Health Systems, Inc. (“Navicent”) (and

collectively, the “Defendants”) and the sale of his medical practice. We previously

decided companion appeals related to two summary judgment orders addressing the

parties’ claims and counterclaims, as well as a discovery order entered by the trial

court. See Wanna v. Navicent Health, Inc., 357 Ga. App. 140 (850 SE2d 191) (2020) (“Wanna I”). Upon remand, the parties’ remaining claims and counterclaims were

tried in a multi-week jury trial, and the parties have now both appealed to this Court.

In Case No. A24A0909, the Defendants argue that the trial court erred in

(1) accepting an inconsistent verdict in favor of Dr. Wanna; (2) admitting into

evidence irrelevant and unfairly prejudicial e-mails; (3) denying the Defendants’

motion for a directed verdict on Wanna’s fraud and negligent misrepresentation

claims as the evidence was insufficient to sustain the jury’s verdict on these claims;

and (4) denying the Defendants’ motion for a directed verdict on Wanna’s claim for

OCGA § 13-6-11 attorney fees and expenses.

In his cross-appeal in Case No. A24A0910, Dr. Wanna contends that the trial

court erred by (1) overruling his objections to the admission of certain defense

exhibits; (2) denying his motion for a directed verdict on the Defendants’ claim for

lost profits; (3) sustaining the Defendants’ objection to his questioning of Navicent’s

Chief Financial Officer (“CFO”) about the company’s 2023 financial information;

(4) granting the Defendants’ motion in limine regarding statements allegedly made by

Navicent’s Chief Executive Officer (“CEO”) to Wanna at an executive training

2 session; and (5) granting the Defendants’ motion for a protective order and awarding

the Defendants attorney fees.

For the reasons that follow, we affirm in part and reverse in part in Case No.

A24A0909, and remand to the trial court for an evidentiary hearing to allow Dr.

Wanna to establish the amount of OCGA § 13-6-11 attorney fees that was attributable

to his prevailing claims with respect to each attorney. We affirm in Case No.

A24A0910.

Legal Standard

“(T)his Court reviews the judgment entered by the trial court after approval

of a jury verdict upon the any evidence test, absent any material error of law.

Additionally, when a question of law is at issue, we owe no deference to the trial

court’s ruling and apply a de novo standard of review.” Howland v. Wadsworth, 324

Ga. App. 175, 176-177 (749 SE2d 762) (2013) (citations and punctuation omitted).

Background Facts and Procedural History

The extensive factual background to the underlying dispute between the parties

is recounted in Wanna I, 357 Ga. App. at 141-146. Here, we set forth only those facts

necessary to place the parties’ current appeals into context.

3 Navicent is the corporate parent of the Medical Center of Central Georgia, a

hospital located in Macon (“Medical Center”), and Health Services, a physician

group. Wanna I, 357 Ga. App. at 141. Dr. Wanna is a surgeon who is licensed to

practice medicine in the State of Georgia and is board-certified by the American Board

of Thoracic Surgery with a specialty in cardiothoracic and vascular surgery. Effective

July 1, 2013, Dr. Wanna and Navicent entered into an employment agreement under

which Wanna agreed to serve as the Chief Medical Officer and Chief Clinical Officer

of Navicent in exchange for certain compensation and benefits (“Executive

Agreement”). Pursuant to the Executive Agreement, which had an initial term of

three years, Navicent agreed to pay Wanna a base salary and certain benefits,

including, as relevant here, severance compensation if he resigned his executive

position for “Good Reason at any time” after providing Navicent notice and an

opportunity to cure. Pursuant to Section 4 (b) (1) (i) of the Executive Agreement,

“Good Reason” was defined to include a material reduction in Wanna’s base salary.

Under the Executive Agreement, Wanna also was eligible under certain circumstances

for annual incentive compensation under Navicent’s Management Incentive Plan

4 (“MIP”) and retirement benefits under its Supplemental Executive Retirement Plan

(“SERP”). As this Court explained in Wanna I:

Two documents are at issue pertaining to the SERP plan: (1) a “Summary of Navicent Health Executive SERP” provided to Dr. Wanna while he served as an executive (the “SERP Summary”), and (2) the SERP plan document (the “SERP Plan”). The SERP Summary stated that an executive’s account vested upon, among other things, “the termination by the Executive of his or her employment for good reason (e.g., a material reduction in the Executive’s base salary, authority, duties, etc.).” In contrast, the SERP Plan did not provide for vesting upon the termination of an executive for good reason. Rather, the SERP Plan required continuous employment for five years before an executive had any vested right to SERP contributions, subject to an exception for accelerated vesting based on a “separation of service” due to death, disability, or “involuntary separation of service . . . without Cause” initiated by Navicent.

357 Ga. App. at 155 (4). The Executive Agreement also contained restrictive

covenants, including non-compete and non-solicitation provisions that applied to

Wanna during his employment and for a designated time period thereafter.

While serving in his executive position at Navicent, Dr. Wanna continued to

maintain his cardiac surgery practice, including performing cardiothoracic and

vascular surgeries at Coliseum Medical Center, another hospital located in Macon.

5 Wanna I, 357 Ga. App. at 142. In 2014, Wanna entered into a physician employment

agreement with Health Services that set out the terms of his continued work as a

surgeon (“Physician Agreement”). Pursuant to the terms of the Physician Agreement,

Wanna agreed to work as a part-time physician and cardiothoracic surgeon with

Health Services and remain a member of the active clinical staff at the Medical Center

while continuing to work as an executive at Navicent. Health Services agreed to pay

Wanna a base salary as well as productivity compensation. The initial term of the

Physician Agreement was three years, but Wanna retained the ability to terminate the

Physician Agreement “at any time upon the occurrence of a material breach of the

terms of [the] Agreement by [Health Services]” so long as the latter was afforded

notice and an opportunity to cure within 30 days of notice of such breach. The

Physician Agreement also contained a non-compete covenant.

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HEALTH SERVICES OF CENTRAL GEORGIA, INC. v. FADY S. WANNA, Counsel Stack Legal Research, https://law.counselstack.com/opinion/health-services-of-central-georgia-inc-v-fady-s-wanna-gactapp-2024.