Larsen v. Burroughs

277 N.W. 463, 224 Iowa 740
CourtSupreme Court of Iowa
DecidedFebruary 8, 1938
DocketNo. 43983.
StatusPublished
Cited by14 cases

This text of 277 N.W. 463 (Larsen v. Burroughs) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larsen v. Burroughs, 277 N.W. 463, 224 Iowa 740 (iowa 1938).

Opinion

Sageb, J.

The plaintiff is a partnership of medical men operating as the Le Mars Clinic. In 1934, Shepard, one of the members, became disabled, and 0 ’Toole entered the partnership. In September 1934, the defendant was advised of the prospective retirement of Shepard, and negotiations were had which finally resulted in the execution, on September 20th of that year, of the contract which furnishes the basis of discussion herein. After providing for the payment of $1,800 a year beginning October 1, 1934, and other specifications which we need not now consider, the contract provides:

"Party of the Second Part agrees that he will not engage in the practice of medicine or surgery or any of the healing arts, in the City of Le Mars, Iowa, outside of the Le Mars Clinic group (same being Party of The First Part) for the period of ten years from the date of expiration of this contract, without the consent of the said Party of the First Part.”

Following the execution of this contract defendant was introduced socially and professionally to the plaintiffs’ patients, was taken into consultations, and recommended as a competent and dependable doctor. The retiring physician, Shepard, recommended him to his patients, took him with him to make calls, and told his patients that he (Shepard) was leaving the clinic and that thereafter they should call for the defendant and he would take care of them. Generally the defendant was given every encouragement and assistance to work within the circle of the plaintiffs’ patients. He had no previous acquaintance in that territory, and it appears without question from the record that-whatever standing he had in the community as a medical man was derived from his contact with the plaintiff group.

During the course of the year provided for by the contract some of the members of the plaintiff partnership began to doubt the defendant’s interest in group practice, and this was the subject of some consideration among the plaintiff partners. As the *742 expiration of the term of tbe contract approached, the subject of defendant’s further connection with or relationship to the plaintiffs naturally became of interest to all parties. As we read the record, there was no agreement, express or implied, for a definite extension of the term of defendant’s employment, but it was finally agreed, tacitly at least, that he should continue to work for the plaintiffs under a somewhat larger or better salary. During the time matters were in this condition there was some discussion between the defendant and the plaintiffs as to the status of defendant. These matters need not now have specific attention.

On February 9, 1986, the plaintiffs gave to the defendant the following notice :

“You are hereby notified that the written agreement of employment entered into Sept. 20, A. D. 1934, between yourself and the Le Mars Clinic of Le Mars,’ Iowa, which was extended in all its terms, except as to definite period of employment, and with a slight increase in salary, after October 1, 1935, by mutual understanding of the parties, and confirming the oral notice which you received December 17, 1935, your employment with the Le Mars Clinic is terminated as of the date March 1, A. D. 1936.

“This statement is given to you at your request and is in no way intended as any reflection upon your ability as a physician or surgeon.”

Following the termination of the time fixed by this notice, the defendant, according to the allegations of the petition (which are not seriously denied in the record) “is now engaged, and is about to engage, in the practice of the healing arts in the city of Le Mars, outside of the plaintiff group, in violation of his contract, and will continue to do so unless restrained by this court. ’ ’

What has been said is sufficient to indicate in a general way the controversy before us. The record is long and its examination has involved a considerable amount of labor, the result of which has persuaded us that the trial court not only accurately perceived the rules of law governing cases of this kind, but correctly applied them to the case before it; and, since the decree of the trial court in concise language sums up the record made before it, we quote rather extensively from it:

*743 “As shown by the pleadings and the evidence in the ease, the plaintiffs, at the commencement of this action, were engaged as a partnership in the practice of the profession of physicians and surgeons in the city of Le Mars, Plymouth County, Iowa. The Le Mars Clinic had been operated for a number of years prior to the commencement of the action as a co-partnership, although a few changes occurred from time to time in the personnel of the individuals who were members of that partnership, and such a change, or substitution, was in contemplation at the time the contract of employment, ‘Exhibit D,’ was entered into between the said partnership and the defendant. The contemplated change was shortly thereafter effected by the sale of the interest of Doctor W. T. Shepard, retiring partner, to the plaintiff, Doctor L. C. 0 ’Toole.

“The defendant, Doctor H. H. Burroughs, at the time of his employment by the plaintiffs, had but recently completed his interneship, and had never resided or practiced his profession in the aforesaid city of Le Mars, Plymouth County, Iowa; and prior to said employment, had no acquaintanceship of any extent in said city of Le Mars or vicinity.

“The aforesaid written contract of employment, ‘Exhibit D,’ provided that the defendant was to work for the plaintiffs, as a physician and surgeon, for the period of one year, commencing October 1st, 1934, and contained a provision to the effect that the defendant would not engage in the practice of medicine or surgery, or any of the healing arts, in the city of Le Mars, Iowa, outside of the Le Mars Clinic group, for the period of ten years from the date of expiration of said contract, without the consent of the members of the Le Mars Clinic. It is the later provision which the plaintiffs claim has been violated by the defendant, and against such violation they seek the in-junctive relief prayed.

“The privilege of a duly licensed physician, to practice his chosen profession when and where he may wish is a right which the courts will zealously protect, but it is also a privilege which, by valid, voluntary contract, the physician may restrict; providing that such contractual restrictions .are reasonable, and not contrary to public policy.”

Further, commenting more directly upon the defendant’s relation to the practice of the plaintiff group, the court said:

*744 “Under tbe contract referred to, the defendant, a young man and a comparatively inexperienced practitioner, with no previous residence in the city of Le Mars, was taken into the offices of the plaintiffs, most of whom were old and established practitioners. It inevitably followed .that the defendant became acquainted with many patients of the Le Mars Clinic, and it would be decidedly uncomplimentary to the defendant to assume that such acquaintanceship resulted in antagonism between the defendant and such patients. On the contrary, it is quite reasonable to assume that, in the course of time, and due to personal and professional contacts, many of them, at least, became on very friendly terms .with the defendant.

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277 N.W. 463, 224 Iowa 740, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larsen-v-burroughs-iowa-1938.