Newman v. Raleigh Internal Medicine Associates, P.A.

362 S.E.2d 623, 88 N.C. App. 95, 1987 N.C. App. LEXIS 3444
CourtCourt of Appeals of North Carolina
DecidedDecember 15, 1987
DocketNo. 8710SC282
StatusPublished
Cited by5 cases

This text of 362 S.E.2d 623 (Newman v. Raleigh Internal Medicine Associates, P.A.) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newman v. Raleigh Internal Medicine Associates, P.A., 362 S.E.2d 623, 88 N.C. App. 95, 1987 N.C. App. LEXIS 3444 (N.C. Ct. App. 1987).

Opinion

COZORT, Judge.

Plaintiff brought this action to recover post-termination benefits pursuant to his employment contract with defendant. Defendant denied liability and moved for summary judgment on the grounds that plaintiff had forfeited these benefits. From the trial court’s order granting defendant’s motion, plaintiff appeals. We affirm.

Raleigh Internal Medicine Associates, P.A. (RIMA), is a Raleigh professional corporation specializing in internal medicine and various internal subspecialties, such as cardiology, hematology, gastroenterology, pulmonary disease and allergy care. RIMA offers both primary medical care, where service is offered directly to a patient, and referral care, where a patient is referred to one of RIMA’s specialists by another physician.

On 11 July 1983, plaintiff, a physician, entered into an employment contract with RIMA and became associated with its cardiovascular division. While employed by RIMA, plaintiff s primary area of practice was invasive cardiology, but he also practiced a significant amount of general cardiology and a small amount of general internal medicine. The majority of plaintiffs services were provided to patients referred from other doctors.

Plaintiff left RIMA’s employ on 31 July 1985, and on 1 August 1985, he began working for Wake Heart Associates (WHA), also in Raleigh, where he has worked since that time. Plaintiffs practice at WHA is generally the same as his practice at RIMA, but on a smaller scale. He practices primarily invasive cardiology, just as he had at RIMA, as well as some general cardiology and general internal medicine. Additionally, all of the services offered by WHA were available from RIMA at the time plaintiff left. During plaintiffs first ten months at WHA, almost ten percent of his patients were former patients at RIMA.

On 21 March 1986, plaintiff commenced this action against RIMA to recover post-termination benefits pursuant to paragraph 11(c) of his employment contract. Paragraph 11(c) provides in part:

If the Employee’s employment is terminated by either party for reasons other than cause, death or disability, the [sic] the Corporation shall continue to pay Employee’s full base salary for the first thirty (30) days following Employee’s [97]*97departure, three-fourths (%) of Employee’s base salary for the second thirty (30) day period, and one-half (V2) of Employee’s base salary for the third thirty (30) day period thereafter. At ninety (90) days, following departure the productivity bonus formula will be computed and final settlement between departing Employee and Corporation will be made.

RIMA denied liability under paragraph 11(c) on the grounds that plaintiff had forfeited his right to post-termination benefits under the terms of paragraph 11(e) of the employment contract. This paragraph provides:

(e) Limitation of Practice. If Employee voluntarily terminates Employee’s employment within three (3) years of Employee’s initial employment by the Corporation and in Wake County, North Carolina, directly or indirectly engages in, owns, manages, operates, controls, is employed by, connected with, or participates in any practice or business similar to the type of practice or business conducted by the Corporation at the time of termination, the Employee shall forfeit any salary continuation beyond his base salary draw up to the date of termination. (Emphasis added.)

RIMA contended that by engaging in employment at WHA “similar” to what he had done at RIMA, plaintiff was not entitled to any of his post-termination benefits.

Following extensive discovery, plaintiff moved for partial summary judgment on the issue of RIMA’s liability to him, but not on the issue of damages. RIMA responded by filing a motion for summary judgment as to the entire complaint on the grounds that plaintiff had forfeited his benefits.

After a hearing, the trial court denied plaintiffs motion, granted RIMA’s motion, and dismissed plaintiffs claim with prejudice. From this order, plaintiff appeals.

Plaintiff argues that the trial court erred in granting defendant’s motion for summary judgment. We disagree.

The test on a motion for summary judgment made under N.C. Gen. Stat. § 1A-1, Rule 56 and supported by matters outside the pleadings is whether, on the basis of the materials presented

[98]*98to the court, there is any genuine issue as to any material fact and whether the movant is entitled to judgment as a matter of law. Barbour v. Little, 37 N.C. App. 686, 247 S.E. 2d 252, disc. rev. denied, 295 N.C. 733, 248 S.E. 2d 862 (1978). “A party may show that there is no genuine issue as to any material facts by showing that no facts are in dispute.” Best v. Perry, 41 N.C. App. 107, 110, 254 S.E. 2d 281, 284 (1979).

In the case sub judice, plaintiff and RIMA disagree as to the proper interpretation of paragraph 11(e) of the employment contract. Therefore, an issue of fact has been presented. However,

[e]ven where, ... an issue of fact arises, a party may show that it is not a genuine issue as to a material fact by showing that the party with the burden of proof in the action will not be able to present substantial evidence which would allow that issue to be resolved in his favor. [Citations omitted.] Therefore, . . . [it] is not a genuine issue as to a material fact if it can be shown that the plaintiff cannot present a forecast of substantial evidence which will be available to her at trial and which would allow that issue to be resolved in her favor.

Id. We hold that plaintiff would not have been able to present evidence at trial which would have allowed a decision in his favor.

Paragraph 11(e) of the employment contract precludes plaintiffs right to post-termination benefits if, within three years of his initial employment with RIMA, he engages in a post-termination practice in Wake County that is “similar” to his practice at RIMA. It is undisputed that plaintiff began his post-termination practice in Wake County within three years of his initial employment at RIMA. Plaintiff contends, however, that the forfeiture of benefits under paragraph 11(e) occurs only if he joins a group practice which offers all, or nearly all, of the services and subspecialties offered by RIMA. Since RIMA is a full service primary care organization offering a broad range of medical care, plaintiff argues that in no way can his practice at WHA, which is primarily a hospital-based, consultative, invasive cardiology practice, be considered similar to RIMA.

We hold that plaintiffs practice at WHA was “similar” to RIMA’s practice within the meaning of paragraph 11(e), even

[99]*99though RIMA offers a broader scope of practice areas than WHA offers. Under plaintiffs purported interpretation of paragraph 11(e), two practices would have to be virtually identical in order to be similar. Clearly, this is not what the contract provision intends. “Similar” is a commonly used word, with an easily ascertainable definition. The American Heritage Dictionary, Second College Edition (1985), defines similar as: “Related in appearance or nature; alike though not identical.” We believe the meaning urged by plaintiff is too restrictive and is inconsistent with the commonly understood meaning of “similar.”

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Bluebook (online)
362 S.E.2d 623, 88 N.C. App. 95, 1987 N.C. App. LEXIS 3444, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newman-v-raleigh-internal-medicine-associates-pa-ncctapp-1987.