MetroHealth Sys. v. Khandelwal

2022 Ohio 77, 183 N.E.3d 590
Ohio Court of Appeals·Decided January 13, 2022·No. 109913·Published·Cited by 4 cases

Opinion

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

METROHEALTH SYSTEM, :

Plaintiff-Appellant, :

No. 109913

v. :

ANJAY KHANDELWAL, M.D., ET AL., :

Defendants-Appellees. :

JOURNAL ENTRY AND OPINION

JUDGMENT: AFFIRMED

RELEASED AND JOURNALIZED: January 13, 2022

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-20-932678

Appearances:

Zashin & Rich Co., L.P.A., Jon M. Dileno, David P.

Frantz, and Jeffrey J. Wedel, for appellant.

Walter|Haverfield L.L.P., Mark I. Wallach, and Jamie A.

Price, for appellee Children’s Hospital Medical Center of Akron; Frantz Ward L.L.P., Michael N. Chesney, and Angela D. Lydon, for appellee Anjay Khandelwal, M.D.

LISA B. FORBES, P.J.:

Appellant, MetroHealth System (“MetroHealth”), appeals the trial court’s decision granting in part and denying in part MetroHealth’s motion for preliminary injunction seeking to enforce a noncompete agreement against appellees, Dr. Anjay Khandelwal (“Dr. Khandelwal”) and Children’s Hospital Medical Center of Akron (“Akron Children’s”). After reviewing the law and pertinent facts of the case, we affirm. I. Facts and Procedural History Dr. Khandelwal was recruited by MetroHealth in December 2013, from Arkansas to serve as a burn surgeon and associate director of MetroHealth’s Comprehensive Burn Care Center (“Burn Center”). At that time, Dr. Khandelwal was a fully trained burn surgeon, serving as the director of the burn center at Arkansas Children’s Hospital. His 2013 employment agreement with MetroHealth included a noncompete clause, which stated that he would “not provide consulting, medical expert or professional services similar to those [he provided] as an employee” within ten miles of MetroHealth for a period of one year after termination of employment.

The scope of the noncompete agreement changed when Dr.

Khandelwal executed a retention agreement with MetroHealth on June 11, 2015. Through that 2015 agreement, Dr. Khandelwal agreed that he would “not provide consulting, medical expert or professional services similar to those [he provided] as an employee of MetroHealth” within 35 miles of MetroHealth for a period of two years after terminating his employment with MetroHealth. Dr. Khandelwal was later promoted to codirector and eventually director of the Burn Center. In October 2019, Dr. Khandelwal’s title was changed to interim director of the Burn Center.

Dr. Khandelwal submitted his resignation from MetroHealth on March 4, 2020, effective June 2, 2020. Dr. Khandelwal had accepted the position of director of the Paul and Carol David Foundation Burn Institute (“Burn Institute”) at Akron Children’s, which is the only other verified burn center located within Dr. Khandelwal’s 35-mile noncompete agreement.

MetroHealth filed a complaint and motion for preliminary injunction seeking to enjoin Dr. Khandelwal from employment at Akron Children’s in any capacity for two years, until June 1, 2022. The trial court held a three-day evidentiary hearing. MetroHealth called Dr. Jeffrey Claridge, Medical Director of MetroHealth Trauma Division and service line director of trauma burns and critical care to testify. Three witnesses testified on behalf of Dr. Khandelwal and Akron Children’s: Dr. Khandelwal; Dr. John Crow, Akron Children’s burn director and chief medical officer; and expert witness Dr. Kevin John Bailey, associate director and burn staff at Wake Forrest University’s Baptist Medical Center. More than 40 exhibits were admitted into evidence.

Following the hearing, the trial court issued a judgment entry granting in part and denying in part MetroHealth’s motion for preliminary injunction, holding that (i) Dr. Khandelwal could begin employment as a burn surgeon with Akron Children’s, (ii) he was “enjoined from assuming the position as Director of the Akron Children’s Burn Institute until June 1, 2021,” (iii) “he shall not use or transmit proprietary or privileged information obtained in the course of his employment with MetroHealth,” and (iv) he may not “personally solicit or direct anyone else to solicit any MetroHealth patient, employee or referral contact in an effort to increase patient census until June 1, 2021.” In doing so, the trial court modified the scope and duration of the noncompete clause in the 2015 retention agreement. It is from this entry that MetroHealth appeals. II. Law and Analysis MetroHealth raises one assignment of error asserting that the trial court erred by failing to enjoin Dr. Khandelwal’s employment with Akron Children’s. MetroHealth argues the trial court erred when it modified Dr. Khandelwal’s noncompete agreement by allowing him to perform services as a burn surgeon immediately and by limiting to one year the restrictions on other employment.

“[T]he grant or denial of an injunction is solely within the trial court’s discretion and, therefore, a reviewing court should not disturb the judgment of the trial court absent a showing of a clear abuse of discretion.” Century Business Servs., Inc. v. Barton, 197 Ohio App.3d 352, 2011-Ohio-5917, 967 N.E.2d 782, ¶ 74 (8th Dist.), citing Garono v. State, 37 Ohio St.3d 171, 524 N.E.2d 496 (1988). A trial court does not abuse its discretion unless that decision was arbitrary, unreasonable, or unconscionable. Blakemore v. Blakemore, 5 Ohio St.3d 217, 219, 450 N.E.2d 1140 (1983).

A party seeking a preliminary injunction must demonstrate that (1)

there is a substantial likelihood of success on the merits of their claim; (2) the moving party will suffer irreparable injury without the requested injunction; (3) no parties will be unjustifiably harmed by the grant of the injunction; and (4) the public interest will be served by the grant of the injunction. AIDS Taskforce of Greater Cleveland v. Ohio Dept. of Health, 2018-Ohio-2727, 116 N.E.3d 874, ¶ 22 (8th Dist.). In determining whether to grant injunctive relief, trial courts must consider each of the four factors, and no single factor is dipositive as to whether the injunction should be granted. Cleveland v. Cleveland Elec. Illum. Co., 115 Ohio App.3d 1, 14, 684 N.E.2d 343 (8th Dist.1996), citing Royal Appliance Mfg. Co. v. Hoover Co., 845 F.Supp. 469, 153 F.R.D. 131 (N.D.Ohio 1994). Further, each case is to be determined on its own facts. Raimonde v. Van Vlerah, 42 Ohio St.2d 21, 25, 325 N.E.2d 544 (1975).

In its judgment entry, the trial court made specific findings under each of the four factors for granting injunctive relief. Upon review of the evidence presented at the hearing, we find that, in issuing its judgment entry, the trial court did not abuse its discretion A. Likelihood of Success on the Merits The trial court first looked at MetroHealth’s likelihood of success on its breach-of-contract claim against Dr. Khandelwal. MetroHealth challenges the trial court’s modification of the noncompete agreement, arguing that the trial court “improperly modified the terms of Dr. Khandelwal’s non-compete by allowing him to immediately begin working for Akron Children’s as a burn surgeon and by reducing the scope of the non-compete from two years to one year.” We disagree.

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MetroHealth Sys. v. Khandelwal, 2022 Ohio 77, 183 N.E.3d 590 (Ohio Ct. App. 2022).

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