LOZOWSKI v. CAPE REGIONAL PHYSICIANS ASSOCIATES

CourtDistrict Court, D. New Jersey
DecidedMay 30, 2024
Docket1:22-cv-01578
StatusUnknown

This text of LOZOWSKI v. CAPE REGIONAL PHYSICIANS ASSOCIATES (LOZOWSKI v. CAPE REGIONAL PHYSICIANS ASSOCIATES) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LOZOWSKI v. CAPE REGIONAL PHYSICIANS ASSOCIATES, (D.N.J. 2024).

Opinion

NOT FOR PUBLICATION IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY CAMDEN VICINAGE DR. JOHN LOZOWSKI, ! HONORABLE KAREN M. WILLIAMS Plaintiff, | Civil Action v. ! No. 22-1578 (RXMW-EAP) CAPE REGIONAL PHYSICIANS ASSOCIATES, OPINION Defendant. !

APPEARANCES: ANDREW M. SMITH, ESQ. SMITH MARCINO & BOWMAN 208 N. EASTON ROAD WILLOW GROVE, PA 19090 Counsel for Plaintiff Dr. John Lozowski BRIAN JOSEPH MCGINNIS, ESQ. FOX ROTHSCHILD LLP 2000 MARKET STREET, 20TH FLOOR PHILADELPHIA, PA 19103 Counsel for Defendant Cape Regional Physicians Associates

WILLIAMS, District Judge: I. INTRODUCTION Plaintiff Dr. John Lozowski (“Plaintiff”) brings this action against Defendant Cape Regional Physicians Associates (“Defendant”), alleging that Defendant breached their employment agreement when terminating Plaintiff’s employment in June of 2021. This matter comes before the Court on Defendant’s Motion for Summary Judgment, (ECF No. 34). Plaintiff opposed the motion, (ECF No. 37), and Defendant replied, (ECF No. 39). For the reasons that follow, the Court will grant Defendant’s Motion for Summary Judgment, (ECF No. 34).! Il. BACKGROUND The Parties entered into an employment agreement (“the Agreement”) effective May 2019, whereby Plaintiff was employed by Defendant “to practice medicine and render professional medical services,” See Defendant’s Statement of Material Facts (“SMP”) 9] 4, 9-13, 26-27; see also Def. Motion for Summary Judgment at Ex. B at Article 2.1. Plaintiff began seeing patients at Defendant’s Seaville, NJ location in May of 2019. SMF 47 4, 13. The Agreement provided that Defendant would guarantee Plaintiff's annual base compensation for the first two years of his contract at $220,500.00 based on services provided on a thirty-six clinical hours per week basis, generating 5,000 work RVUs? in a twelve-month period and that a $20,000.00 retention bonus would be available if Plaintiff generated 5,000 RVUs in year two of his three-year Agreement. Jd. □

52, 55-56.

Pursuant to Local Civil Rule 78.1(»), this motion will be decided on the papers without oral argument. 2 «RVU” stands for “Relative Value Units” which represents a standardized, objective way to determine physician reimbursements for services provided, as a way of measuring physician productivity. Jd. 953.

On May 19, 2021, the Chief Financial Officer (“CFO”) emailed Plaintiff a letter notifying him that his productivity for his second year fell below the 5,000 RVUs required to receive his retention bonus. Jd. 4] 8, 72-75. The letter also noted that, pursuant to the Agreement, Defendant had the right to reduce Plaintiff's base compensation if he failed to maintain the agreed upon productivity levels, but at that time Defendant was not electing to utilize this provision and wanted to bring this provision to Plaintiff's attention “in an effort to avoid this course of action” in the future, Jd. [| 77. On May 24, 2021, Plaintiff responded to the May 19 email, informing Defendant that his office manager was refusing to increase his patient volume despite his requests for an increase and that various factors out of Plaintiff's control were impeding his ability to achieve the required 5,000 RVUs, fd, J] 78-79. Plaintiff ended his email with the following: “[i]f 1 receive no retention bonus my time with [Defendant] will be short lived and the day [Defendant] decides to decrease my compensation will be literally my last day.” Jd. | 79. On the morning of June 2, 2021, the CFO called Plaintiff to discuss his response to the May 19 email and explained that even when Plaintiff's hours were adjusted to account for hts leave of absence, Plaintiff still fell short of the 5,000 RVUs for his retention bonus, and that Defendant would not deviate from the terms of the Agreement. /d. {| 84-85. Plaintiff responded “So I'll be terminating my relationship maybe immediately, I need to — □□ speak to my attorney and I'll get back to you about that.” /d, | 85. At 2:47 p.m, the same day, Plaintiff emailed Byron, the Vice President of Human Resources, with the subject line “Termination,” stating: “[p]lease accept email as immediately termination of my employment with [Defendant]. Despite [Defendant] limiting my ability to see patients thru the Coronavirus Pandemic my retention bonus will not be paid according to an as usual angry aggressive unprofessional [CFO]. [. . .] [t has been a pleasure

working with you Byron, Good Luck.” Je. J] 88, 90, 92; see also Def. Motion for Summary Judgment at Ex. F. Later that same day, at 7:52 p.m., Plaintiff sent Byron a second email titled “Termination” stating in pertinent part: “Please disregard my termination email, [. . .] 1 will abide by our agreement and stay the three years.” Jd. |] 96-97; see also Def. Motion for Summary Judgment at Ex. G, In response to the email exchange, Plaintiff scheduled an appointment with a psychiatrist. Id. 101. On June 7, 2021, the psychiatrist provided Plaintiff with a note indicating that Plaintiff could not work through June 30, 2021, due to major depressive disorder. 4102. Plaintiff faxed the note to the Defendant the same day. /d. In addition, at some point on June 7, 2021, the Chief Medical Officer (“CMO”) and Plaintiff spoke by telephone. /d. J 105. On June 8, 2021 at 11:34 a.m., Plaintiff emailed the CMO, noting that he had some “issues” he wanted to address related to his departure from the practice, specificatly (1) when his incentive bonus for 2020-2021 would be paid, (2) requesting that his “exit date” coincide with “my out of work note,” and (3) seeking clarity on the non-compete clause of the Agreement to ascertain whether he could continue to practice in Atlantic County if he solely took house calls or worked part time in an urgent care setting. Jd. 104-106; see also Def. Motion for Summary Judgement at Ex. J. Later that same day, at 8:31 p.m., the CMO responded to Plaintiff and explained that she needed to hear back from others to answer the question about whether Defendant could “adjust the date of [Plaintiff's] resignation” and what activities would be compliant with the noncompete clause of the Agreement. fd. 9109-110; see also Def. Motion for Summary Judgment at Ex. J. On June 9, 2021, at 8:20 am, Plaintiff replied to the CMO, stating in pertinent part, “[a]s far as the exit date, since we are mutually agreeing to separate the exit date can be set at whatever

we agree. It would not effect [the Agreement] at all but would benefit help me receive disability benefits.” 7d. 111-112; see also Def. Motion for Summary Judgment at Ex. J. On June 18, 2021, the CMO responded to Plaintiff via email with the subject line “RE: Resignation,” on which the Vice President of Human Resources was co’d, that stated: “Sorry for the delay in this response, Attached is the letter confirming mutual termination under Article 3,2 of your employment agreement. The incentive will be processed, The resignation date was already on record in your email. We really are not able to adjust that date [and ., .] there will be a separate communication to address your request to practice urgent care in Atlantic [C]ounty. We will be in touch again next week.” Jd. J 114; see also Def. Motion for Summary Judgment at Ex. J. The letter attached to the email is dated June 15, 2021, (“Tune [5 letter”), with the subject line “Re: Article 3.2 Termination by Mutual Agreement,” states in pertinent part: This letter will serve to memorialize our conversation on June 7, 2021. Gn June 2, 2021 you tendered your resignation based on a telephone conversation yeu had with Mark Gill, CFO, Cape Regional Health System, where you alleged Mark was angry, aggressive, yelling, unprofessional and had created a hostile work environment.

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Bluebook (online)
LOZOWSKI v. CAPE REGIONAL PHYSICIANS ASSOCIATES, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lozowski-v-cape-regional-physicians-associates-njd-2024.