Jefferson City Medical Group, P.C. v. David Brummett

CourtMissouri Court of Appeals
DecidedApril 18, 2023
DocketWD85467
StatusPublished

This text of Jefferson City Medical Group, P.C. v. David Brummett (Jefferson City Medical Group, P.C. v. David Brummett) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jefferson City Medical Group, P.C. v. David Brummett, (Mo. Ct. App. 2023).

Opinion

IN THE MISSOURI COURT OF APPEALS WESTERN DISTRICT JEFFERSON CITY MEDICAL ) GROUP, P.C., ) ) Respondent, ) ) v. ) WD85467 ) DAVID BRUMMETT, ) Filed: April 18, 2023 ) Appellant. ) Appeal from the Circuit Court of Cole County The Honorable Daniel R. Green, Judge Before Division Two: Alok Ahuja, P.J., and Anthony Rex Gabbert and Thomas N. Chapman, JJ. Dr. David Brummett appeals from a judgment of the Circuit Court of Cole

County, which enforced a covenant not to compete contained in Dr. Brummett’s

employment agreement with the Jefferson City Medical Group. Consistent with

the non-compete clause, the circuit court enjoined Dr. Brummett from practicing

radiology in a twenty-five mile radius around Jefferson City for two years.

Because the circuit court’s judgment did not resolve the Medical Group’s

claim for attorney’s fees, the judgment was not final, and we accordingly dismiss

Dr. Brummett’s appeal. Factual Background On January 19, 2022, Jefferson City Medical Group filed an Application for

Temporary Restraining Order and Petition for Preliminary and Permanent Injunction against Dr. Brummett in the Circuit Court of Cole County. Dr.

Brummett had been employed as a radiologist with the Medical Group beginning

in 2015. Dr. Brummett resigned from the Medical Group on January 7, 2022, and began employment as a radiologist with a competing medical practice.

The Medical Group alleged that Dr. Brummett’s new employment violated

a covenant not to compete contained in his Physician Agreement with the Group. The non-compete clause provided that, for two years following the termination of

his Physician Agreement, Dr. Brummett would not practice radiology or

otherwise compete with the Medical Group within twenty-five miles of the city limits of Jefferson City (excluding Columbia). The Medical Group prayed that the

circuit court issue a temporary restraining order, and preliminary and permanent

injunctive relief, barring Dr. Brummett from practicing in violation of his

covenant not to compete. The Medical Group’s petition quoted the provision of

the Physician Agreement specifying remedies for a breach of the non-compete

clause: the Agreement specified that, in the event of a breach, the Medical Group would be entitled to injunctive relief, as well as “damages, attorneys’ fees, costs,

and expenses.” The petition accordingly prayed for damages, attorney’s fees, and

other costs in addition to injunctive relief. Dr. Brummett’s Answer alleged that, following termination of the Medical

Group’s contract to provide radiology services to SSM Health St. Mary’s Hospital

in Jefferson City, the Medical Group had not provided Dr. Brummett with full- time work. Dr. Brummett contended that this constituted a material breach of

2 his Physician Agreement, which relieved him of his obligations under the covenant not to compete.

The circuit court issued a temporary restraining order against Dr.

Brummett on February 1, 2022. Dr. Brummett filed an Amended Answer, in which he alleged that the

members of the Medical Group “promoted an unprofessional environment and

violated important policies and regulations, thus endangering the reputations

and ability to practice of anyone associated with the group” by making

inappropriate racist and xenophobic comments; violating patient privacy; and

accusing Dr. Brummett of disloyalty when he sought to supplement his income through outside employment. Dr. Brummett also alleged that the Medical Group

materially breached the Physician Agreement by not paying him certain sums to

which he was contractually entitled.

The circuit court conducted a bench trial over five days in March 2022. In

its judgment entered on May 19, 2022, the circuit court held that the covenant

not to compete was enforceable, that the Medical Group had not forfeited its right

to enforce the covenant by materially breaching the Physician Agreement, and

that Dr. Brummett’s employment with the competing medical practice violated

the non-compete clause. The circuit court issued an injunction enforcing the

covenant not to compete for a two-year period from July 29, 2022 to July 29,

2024. The judgment also ordered that Defendant Brummett shall pay Plaintiff JCMG’s reasonable attorney’s fees incurred in the enforcement of Dr. Brummett’s restrictive covenants contained in his employment agreement with Plaintiff JCMG in such amount as determined by the court, as well as Plaintiff JCMG’s court costs.

3 Despite finding Dr. Brummett liable for the Medical Group’s attorney’s fees, the judgment did not actually determine the amount of Dr. Brummett’s liability for

fees and costs.

The Medical Group filed a Motion for Attorneys’ Fees with the circuit court on June 8, 2022, supported by billing statements, affidavits of counsel, and other

documentation. The motion sought a total of $448,206.25 in attorney’s fees, and

an additional $8,882.58 in taxable costs.

On June 13, 2022, Dr. Brummett filed a motion to stay further proceedings

on the Medical Group’s attorney’s fee motion. The motion to stay stated that Dr.

Brummett intended to appeal the circuit court’s underlying judgment. The motion noted that “[t]he outcome of that appeal could affect any right to fees,

costs, and interests [sic], as well as the amount of any such fees.” The motion

therefore argued that further proceedings on the Medical Group’s attorney’s fee

motion should be stayed pending resolution of Dr. Brummett’s appeal, “in the

interest of efficiency and judicial economy.” The motion stated that the Medical

Group did not oppose the stay Dr. Brummett was seeking.

On June 15, the circuit court granted Dr. Brummett’s motion and stayed

proceedings on the Medical Group’s attorney’s fee motion.

On June 20, 2022, Dr. Brummett filed his notice of appeal of the

underlying judgment. This Court’s Staff Counsel sent a letter to the parties on

August 5, 2022, noting that the judgment may not be final because of the

unresolved attorney’s fee motion, and requesting suggestions from the parties as to why the appeal should not be dismissed. Both parties submitted suggestions

indicating their belief that the judgment was final and appealable.

4 Dr. Brummett’s opening Brief argued summarily that, if this Court found the non-compete clause to be unenforceable, the Medical Group would no longer

be entitled to attorney’s fees, but that it should instead be ordered to “pay Dr.

Brummett’s attorneys’ fees as the prevailing party.” In response, the Medical Group asked the Court to order a limited remand to the circuit court to permit it

to resolve the attorney’s fee motion. The Medical Group contended that, “[s]ince

Appellant’s brief specifically contests all portions of the judgment, including the

merits of any award or denial of attorney fees . . ., this Court will likely dismiss

the appeal due to nonfinality of judgment.” This Court denied the Medical

Group’s motion for a limited remand on November 1, 2022. At oral argument, and despite its earlier request for a limited remand, the Medical Group once

again asserted that this Court has appellate jurisdiction, and should decide the

appeal on the merits.

Discussion Prior to addressing the substance of Dr. Brummett’s appeal, this Court

must first determine whether we have jurisdiction. “[T]he finality of a judgment

is a prerequisite to our jurisdiction. If we have any doubt about the trial court's

authority to certify a judgment as final, we must address it sua sponte.” Team,

Inc.

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Jefferson City Medical Group, P.C. v. David Brummett, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jefferson-city-medical-group-pc-v-david-brummett-moctapp-2023.