Homebound Medical Care of Southeast Tennessee, Inc. v. Hospital Staffing Services of Tennessee, Inc. Jeanine Warren, Nancy Hyde, AllCare Professional Svcs., and Stella Messer

CourtCourt of Appeals of Tennessee
DecidedFebruary 6, 1998
Docket03A01-9707-CH-00303
StatusPublished

This text of Homebound Medical Care of Southeast Tennessee, Inc. v. Hospital Staffing Services of Tennessee, Inc. Jeanine Warren, Nancy Hyde, AllCare Professional Svcs., and Stella Messer (Homebound Medical Care of Southeast Tennessee, Inc. v. Hospital Staffing Services of Tennessee, Inc. Jeanine Warren, Nancy Hyde, AllCare Professional Svcs., and Stella Messer) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Homebound Medical Care of Southeast Tennessee, Inc. v. Hospital Staffing Services of Tennessee, Inc. Jeanine Warren, Nancy Hyde, AllCare Professional Svcs., and Stella Messer, (Tenn. Ct. App. 1998).

Opinion

I N T H E C O U R T O F A P P E A L S A T K N O X V I L L E

FILED February 6, 1998

Cecil Crowson, Jr. H O M E B O U N D M E D I C A L C A R E O F ) H A M I L T O N C H A N C E R Y Appellate C ourt Clerk S O U T H E A S T T E N N E S S E E , I N C . , ) C . A . N O . 0 3 A 0 1 - 9 7 0 7 - C H - 0 0 3 0 3 ) P l a i n t i f f - A p p e l l a n t ) ) ) ) ) ) v s . ) H O N . H O W E L L N . P E O P L E S ) C H A N C E L L O R ) ) ) ) ) H O S P I T A L S T A F F I N G S E R V I C E S O F ) A F F I R M E D A N D R E M A N D E D T E N N E S S E E , I N C . , E D W A R D W A R R E N , ) J E A N I N E W A R R E N , N A N C Y H Y D E , A L L ) C A R E P R O F E S S I O N A L S E R V I C E S , A N D ) S T E L L A M E S S E R , ) ) D e f e n d a n t s - A p p e l l e e s )

K Y L E E . H E D R I C K , C h a t t a n o o g a , f o r A p p e l l a n t .

G A R Y R . P A T R I C K , P a t r i c k , B e a r d & R i c h a r d s o n , P . C . , C h a t t a n o o g a , f o r a p p e l l e e s . O P I N I O N

M c M u r r a y , J .

T h i s i s a n a c t i o n w h e r e b y t h e p l a i n t i f f s e e k s t o e n f o r c e a

c o v e n a n t n o t t o c o m p e t e i n a n e m p l o y m e n t a g r e e m e n t b e t w e e n t h e

d e f e n d a n t , W a r r e n , a n d t h e p l a i n t i f f . T h e d e f e n d a n t s m o v e d f o r

s u m m a r y j u d g m e n t . T h e m o t i o n d i d n o t s e t o u t a n y g r o u n d s f o r

r e l i e f b u t s i m p l y s t a t e d t h a t d e f e n d a n t s " f i l e t h i s m o t i o n f o r

S u m m a r y J u d g m e n t , p u r s u a n t t o R u l e 5 6 o f t h e T e n n e s s e e R u l e s o f

C i v i l P r o c e d u r e " a n d r e f e r r e d t h e c o u r t t o g r o u n d s s t a t e d i n t h e i r

b r i e f i n s u p p o r t o f t h e m o t i o n . T h e b r i e f i s n o t i n c l u d e d i n t h e

r e c o r d . A p p a r e n t l y , t h e p a r t i e s d i d n o t m a k e a d e s i g n a t i o n o f

r e c o r d a n d t h e C l e r k o f t h e c o u r t c o r r e c t l y o m i t t e d t h e b r i e f

p u r s u a n t t o R u l e 2 4 , T e n n e s s e e R u l e s o f A p p e l l a t e P r o c e d u r e .

F r o m t h e t r i a l c o u r t ' s m e m o r a n d u m o p i n i o n a n d t h e a p p e l l a t e

b r i e f s , i t a p p e a r s t h a t t h e m o t i o n f o r s u m m a r y j u d g m e n t w a s b a s e d

u p o n t h e p r o p o s i t i o n t h a t t h e t e r m o f t h e c o v e n a n t n o t t o c o m p e t e

h a d e x p i r e d . T h e a p p e l l a n t ' s i s s u e i s f r a m e d a s f o l l o w s :

W h e n d o e s W a r r e n ' s c o v e n a n t n o t t o c o m p e t e b e g i n t o r u n u n d e r t h e l a n g u a g e o f t h e p a r t i e s ' a g r e e m e n t ?

C h a n c e l l o r P e o p l e s f i l e d a w e l l - c r a f t e d a n d s c h o l a r l y

m e m o r a n d u m o p i n i o n i n w h i c h h e d e t e r m i n e d t h a t t h e n o n - c o m p e t i t i o n

2 c l a u s e c o n t a i n e d i n t h e e m p l o y m e n t a g r e e m e n t b e t w e e n W a r r e n a n d t h e

p l a i n t i f f e x p i r e d o n D e c e m b e r 3 1 , 1 9 9 1 . W e a f f i r m t h e j u d g m e n t o f

t h e t r i a l c o u r t .

W e h a v e s t u d i e d t h e m e m o r a n d u m o p i n i o n o f t h e c h a n c e l l o r i n

l i g h t o f t h e n u m e r o u s e x h i b i t s a n d d e p o s i t i o n s f i l e d o n b e h a l f o f

a n d i n o p p o s i t i o n t o t h e m o t i o n f o r s u m m a r y j u d g m e n t . W e h a v e

c o n c l u d e d t h a t C h a n c e l l o r P e o p l e s ' o p i n i o n i s c o r r e c t i n a l l

r e s p e c t s e x c e p t a s w e h e r e i n a f t e r p o i n t o u t . W e , t h e r e f o r e , f e e l

i t a p p r o p r i a t e t o a d o p t t h e m e m o r a n d u m o p i n i o n o f t h e c h a n c e l l o r a s

t h e o p i n i o n o f t h i s c o u r t w i t h t h e e x c e p t i o n s n o t e d .

C h a n c e l l o r P e o p l e s ' o p i n i o n , s t a t e d v e r b a t i m , i s a s f o l l o w s :

M E M O R A N D U M O P I N I O N A N D O R D E R

T h i s m a t t e r i s b e f o r e t h e c o u r t u p o n t h e D e f e n d a n t s ' m o t i o n

f o r S u m m a r y J u d g m e n t . H a v i n g c o n s i d e r e d t h e m a t t e r , t h e C o u r t n o w

r e n d e r s t h e f o l l o w i n g M e m o r a n d u m O p i n i o n a n d O r d e r .

I . B a c k g r o u n d

D e f e n d a n t , E d w a r d C . W a r r e n ( " W a r r e n " ) w o r k e d f o r a n u m b e r o f

y e a r s a s t h e V i c e P r e s i d e n t a n d A d m i n i s t r a t o r o f t h e P l a i n t i f f ,

H o m e - B o u n d M e d i c a l C a r e o f S o u t h e a s t T e n n e s s e e , I n c . ( " t h e

P l a i n t i f f " ) . D u r i n g t h a t t i m e W a r r e n e n t e r e d i n t o s e v e r a l

e m p l o y m e n t a g r e e m e n t s w i t h t h e P l a i n t i f f , t h e l a s t o f w h i c h w a s

3 e x e c u t e d o n J a n u a r y 1 , 1 9 8 8 . T h e t e r m s o f t h a t a g r e e m e n t

p r o h i b i t e d W a r r e n f r o m c o m p e t i n g w i t h t h e P l a i n t i f f f o r t h r e e y e a r s

f o l l o w i n g t h e d a t e o f h i s " s e p a r a t i o n " f r o m e m p l o y m e n t . [ C i t a t i o n s

t o r e c o r d o m i t t e d . ] I n M a r c h o f 1 9 9 2 , W a r r e n , d i s s a t i s f i e d w i t h

h i s j o b , l e f t t h e P l a i n t i f f t o b e c o m e t h e E x e c u t i v e V i c e - P r e s i d e n t

o f i t s p a r e n t c o m p a n y , H e a l t h S p h e r e . W a r r e n w a s s i m i l a r l y

d i s a p p o i n t e d w i t h H e a l t h S p h e r e , a n d r e s i g n e d h i s p o s i t i o n t h e r e i n

1 9 9 3 . A s p a r t o f h i s s e a r c h f o r a n e w j o b , W a r r e n c o n t a c t e d

D e f e n d a n t A l l C a r e ( " A l l C a r e " ) , a d i v i s i o n o f H o s p i t a l S t a f f i n g

( " H o s p i t a l S t a f f i n g " ) . A f t e r m e e t i n g s w i t h s e v e r a l s e n i o r

m a n a g e r s , W a r r e n s i g n e d a n e m p l o y m e n t a g r e e m e n t w i t h H o s p i t a l

S t a f f i n g a n d b e g a n w o r k i n g a s t h e M a n a g e r o f t h e C h a t t a n o o g a A l l

C a r e o f f i c e i n l a t e D e c e m b e r 1 9 9 3 o r e a r l y J a n u a r y 1 9 9 4 . T h e

p l a i n t i f f s u b s e q u e n t l y f i l e d t h e c o m p l a i n t i n t h e i n s t a n t c a s e o n

J a n u a r y 1 0 , 1 9 9 4 , a l l e g i n g t h a t W a r r e n ' s e m p l o y m e n t w i t h A l l C a r e

v i o l a t e d t h e n o n - c o m p e t i t i o n c l a u s e c o n t a i n e d i n t h e c o n t r a c t w i t h

h i m . T h e P l a i n t i f f a l s o s o u g h t d a m a g e s f r o m t h e D e f e n d a n t f o r

t h e i r a l l e g e d l y i n d u c i n g W a r r e n t o b r e a c h h i s c o v e n a n t n o t t o 1 c o m p e t e . [ F o o t n o t e i n o r i g i n a l ] . A d d i t i o n a l l y , t h e p l a i n t i f f

r e s p o n d e d t o t h e c o m p l a i n t b y m e a n s o f a n a n s w e r a n d t h e M o t i o n f o r

S u m m a r y J u d g m e n t a t i s s u e i n t h i s o p i n i o n , c l a i m i n g t h a t t h e n o n -

1 T h e p l a i n t i f f a l s o s o u g h t i n j u n c t i v e r e l i e f p r o h i b i t i n g c o n t i n u i n g v i o l a t i o n s o f t h e n o n - c o m p e t e a g r e e m e n t .

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Related

B & L CORP. v. Thomas & Thorngren, Inc.
917 S.W.2d 674 (Court of Appeals of Tennessee, 1995)

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Bluebook (online)
Homebound Medical Care of Southeast Tennessee, Inc. v. Hospital Staffing Services of Tennessee, Inc. Jeanine Warren, Nancy Hyde, AllCare Professional Svcs., and Stella Messer, Counsel Stack Legal Research, https://law.counselstack.com/opinion/homebound-medical-care-of-southeast-tennessee-inc-v-hospital-staffing-tennctapp-1998.