Huntington Eye Associates, Inc. v. Locascio

553 S.E.2d 773, 210 W. Va. 76, 18 I.E.R. Cas. (BNA) 1303, 2001 W. Va. LEXIS 89
CourtWest Virginia Supreme Court
DecidedJuly 6, 2001
Docket28889
StatusPublished
Cited by7 cases

This text of 553 S.E.2d 773 (Huntington Eye Associates, Inc. v. Locascio) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Huntington Eye Associates, Inc. v. Locascio, 553 S.E.2d 773, 210 W. Va. 76, 18 I.E.R. Cas. (BNA) 1303, 2001 W. Va. LEXIS 89 (W. Va. 2001).

Opinion

PER CURIAM.

This is an appeal of an order of the Circuit Court of Cabell County that in essence set aside a plaintiffs verdict and directed a verdict in favor of the defendant. The court also, in the alternative, awarded the defendant a new trial.

I.

The appellant and plaintiff below is Huntington Eye Associates, Inc. (“HEA”), a corporation that is solely owned by Dr. Tully Roisman, M.D., an ophthalmologist. The ap-pellee and defendant below is Dr. Joseph A.. LoCascio, III, M.D., also an ophthalmologist.

Dr. Roisman created HEA as a business structure for the ophthalmology practice that Dr. Roisman began in Huntington, West Virginia in 1983. 1 Dr. Roisman wished to build HEA into a regional, multi-physician, multi-specialist ophthalmology practice. In the course of developing HEA, Dr. Roisman invested substantial amounts of his personal monies, brought the first laser to ophthalmology practice in Huntington, recruited sub-specialists in corneal and retinal work, and founded treatment programs for diabetics. Dr. Roisman also developed a network of consultation and referral involving optometrists and other physicians in a wide geographic area around HEA’s principal office in Huntington, West Virginia. 2

Dr. Roisman met Dr. LoCascio, who was then living in New York State, in 1989, at a “placement exchange” held in connection with a medical professional gathering. Dr. Roisman was a fully trained, certified, and *79 experienced cornea and cataract specialist. After practicing in several other geographic areas, Dr. LoCascio wished to relocate and to join a multi-physician practice that drew from a large geographic area. He had no contacts or prior experience in the Huntington area.

Dr. Roisman and Dr. LoCascio engaged in substantial negotiations about the terms of Dr. LoCaseio’s joining HEA, and Dr. LoCas-cio was represented by experienced legal counsel. Dr. LoCascio was no stranger to medical employment contracts, having been in litigation with his previous employer about such a contract.

The contract that was ultimately agreed upon by Dr. Roisman and Dr. LoCascio provided that Dr. LoCascio would be employed by HEA for an initial 1-year term at a salary of $175,000, at the end of which period Dr. LoCascio would make a decision to either stay and join the practice, or to depart. If Dr. LoCascio chose to stay with HEA, the contract provided that Dr. LoCascio would remain an HEA employee for 3 more years, at increasing salary levels: $225,000 the second year, $275,000 the third year, and $325,000 the fourth year. At the end of 4 years, the contract called for Dr. LoCascio to buy an equal ownership share of HEA stock. The size of that share would depend on how many doctors at that time were stockholders in HEA or were employees with an option to buy a share, when their ability to do so accrued pursuant to their contract.

In addition to his salary, Dr. LoCascio also received from HEA full medical insurance benefits, professional liability insurance, licensing and education costs, and the use of a leased car. The contract provided that if LoCascio left the HEA practice, he would not perform vision services within 50 miles of any HEA office for a period of 2 years post-departure. Specifically, the contract said:

19. RESTRICTIONS: HEA will provide Physician [Dr. LoCascio] with complete access to its books, records, patient lists and dates, as well as its professional methods, procedures, contracts, knowledge and experience, to an extent which HEA would not provide Physician except in contemplation of this Agreement. Physician has represented to HEA and its officers that he does not intend or desire to remain or practice medicine within the area professionally served by HEA, if in fact he does not remain employed by HEA and if he does not purchase such equity stock interest in HEA, as herein contemplated. Therefore, in consideration of the covenants and agreement on the part of HEA as set forth in this Agreement, both for employment and for the sale of said stock, Physician does covenant and agree with HEA that in the event his employment with HEA shall be terminated for any reason whatsoever, then and in such event Physician agrees that he will not engage in the practice of ophthalmic medicine, for a period of at least two (2) years after leaving the employment of HEA, within a radius of fifty (50) miles of the city limits of Huntington, West Virginia or of any HEA branch office. Physician acknowledges that in the event he breaches such agreement herein made on his part, then HEA will suffer damage by virtue of the premises and such breach, and the parties do hereby agree that the amount of such damage in such event would be a sum equal to two (2) years’ total compensation at the rate provided for Physician in this Agreement, and in effect at the time of such breach. Similar restrictions will be applied to all physicians, stockholder and non-stockholder, of HEA.

(Emphasis added.)

Dr. LoCascio worked for HEA for the 1-year “trial period.” He had a full patient load from the first day, and he participated fully in the HEA practice, coming to know the local medical market and community. At the end of his first year, Dr. LoCascio elected to remain at HEA, and to “buy in” and become one of the owners of HEA in 3 years. Dr. LoCascio was paid the increasing salary and benefits that were specified in his contract for the next 3 years. Dr. LoCascio’s billings generated gross revenues for HEA that were substantially in excess of his salary; however, HEA covered all of the overhead of his practice.

*80 In early to mid-1994, Dr. LoCascio began to look for other employment. He traveled to Seattle, Washington, and to other locations to explore other employment opportunities. Dr. LoCascio testified that his exploration of other possible employment resulted from his belief that he might not do well financially by buying into the HEA practice. According to Dr. LoCascio, one consideration was that two physicians who had come to HEA had left without joining the practice as owners- — and with those physicians gone, Dr. LoCascio believed that buying into HEA might not be consistent with his financial goals. However, at the same time that Dr. LoCascio was exploring other employment alternatives, he was also negotiating with Dr. Roisman about possibly revising the contractual terms regarding the cost of a buy-in at HEA.

In October of 1994, Dr. LoCascio and Dr. Roisman participated in a meeting with several “technician” employees who worked in the HEA offices. These employees tested patients’ vision, using eye charts, lenses, and similar equipment — to obtain visual acuity test result numerical readings, like 2%o, 2%o, etc. Some of the technician employees had received special certification in connection with this work; others had not, and it does not appear that such certification was legally required. Most had learned the testing procedures on the job.

The results of the technicians’ visual testing were recorded by the technician on a patient’s chart. The technician would then leave the patient, who would wait for an HEA doctor, like Dr. Roisman or Dr. LoCas-cio — who would then examine the patient, having the technician’s test results in hand.

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Cite This Page — Counsel Stack

Bluebook (online)
553 S.E.2d 773, 210 W. Va. 76, 18 I.E.R. Cas. (BNA) 1303, 2001 W. Va. LEXIS 89, Counsel Stack Legal Research, https://law.counselstack.com/opinion/huntington-eye-associates-inc-v-locascio-wva-2001.