Peter Jokich v. Rush University Medical Center

42 F.4th 626
CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 28, 2022
Docket21-2691
StatusPublished
Cited by17 cases

This text of 42 F.4th 626 (Peter Jokich v. Rush University Medical Center) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peter Jokich v. Rush University Medical Center, 42 F.4th 626 (7th Cir. 2022).

Opinion

In the

United States Court of Appeals for the Seventh Circuit ____________________ No. 21-2691 PETER JOKICH, M.D., Plaintiff-Appellant, v.

RUSH UNIVERSITY MEDICAL CENTER, Defendant-Appellee. ____________________

Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 18 C 7885 — Joan H. Lefkow, Judge. ____________________

ARGUED FEBRUARY 23, 2022 — DECIDED JULY 28, 2022 ____________________

Before SYKES, Chief Judge, and FLAUM and KANNE *, Circuit Judges. SYKES, Chief Judge. Rush University Medical Center fired Dr. Peter Jokich, a distinguished radiologist who had worked at the hospital for nearly two decades. Dr. Jokich

* Circuit Judge Kanne died on June 16, 2022, and did not participate in the decision of this case, which is being resolved under 28 U.S.C. § 46(d) by a quorum of the panel. 2 No. 21-2691

sued Rush, asserting claims under Title VII of the Civil Rights Act of 1964 and Illinois law. He contends that his termination and other actions taken by Rush were unlawful retaliation for his participation in a colleague’s Title VII lawsuit and his opposition to discriminatory practices at Rush. He also contends that Rush’s actions violated the procedures set out in his employment contract and that Rush failed to adhere to an agreement guaranteeing his employ- ment for an additional year. The district judge entered summary judgment for Rush on all claims. We affirm. The record supports Rush’s conten- tion that its actions were taken because of Dr. Jokich’s clash- es with his colleagues; it does not support Dr. Jokich’s claim that he was fired because of his participation in activity protected by Title VII. Nor does the record support Dr. Jokich’s claims for breach of contract. Rush’s actions comported with his employment contract, and the agree- ment extending his employment was subject to a condition precedent—approval by the hospital’s Board of Trustees— that was never satisfied and that Rush did not waive. I. Background Dr. Peter Jokich is an accomplished radiologist who spe- cializes in breast imaging. He was recruited to Rush in 2001 by Dr. Larry Goodman, then the hospital’s Dean, to improve Rush’s struggling breast-imaging practice. Over the next two decades, Dr. Jokich built a highly successful practice and until his final year of employment, served as the director of the hospital’s Division of Breast Imaging. That changed in August 2018 when Rush stripped him of this role, cut his pay by over $200,000, and provided notice that his employ- ment contract would not renew when it expired in June No. 21-2691 3

2019. Dr. Jokich contends that these actions resulted in several breaches of contract and were unlawful retaliation for his participation in activity protected by Title VII. A. The Employment Contract Dr. Jokich and Rush had an employment contract called a “Faculty Employment Agreement.” The agreement, stand- ard for doctors employed by Rush, set Dr. Jokich’s duties and base salary and provided for a one-year employment term. The agreement automatically renewed on July 1 each year unless one party provided 120 days’ notice of the intent to terminate the agreement. Rush could terminate the agreement mid-term only for cause. However, Rush could modify Dr. Jokich’s pay and duties with 60 days’ notice. In addition to the Faculty Employment Agreement, Dr. Jokich’s employment was at times governed by “letter agreements,” which were written on Rush letterhead and sent to Dr. Jokich for his signature. Dr. Jokich specially negotiated for the letter agreements, which provided for multiyear employment terms—superseding the Faculty Employment Agreement’s one-year term—and annual bonuses and special benefits for him and his breast-imaging team. Absent an active letter agreement, Dr. Jokich’s em- ployment was governed solely by the Faculty Employment Agreement. In August 2016 Dr. Jokich signed a letter agreement ex- tending his employment through June 30, 2020. (We call this the “2016 letter agreement” or “2016 agreement.”) The enforceability of the agreement was subject to a condition precedent: approval by Rush’s Board of Trustees. The Board of Trustees had to approve the pay of very highly compen- 4 No. 21-2691

sated doctors like Dr. Jokich because the hospital, a tax- exempt, not-for-profit entity, risked liability under antikick- back laws if it overcompensated a physician relative to his clinical productivity. At an October 2016 meeting, the Board of Trustees con- sidered and declined to approve the 2016 letter agreement. It worried that Dr. Jokich’s clinical productivity was too low to warrant the bonus compensation, exposing Rush to the risk of liability. After the Board’s decision, Rush tried to craft an amendment to the 2016 agreement acceptable to both Dr. Jokich and the Board. Dr. Jokich personally participated in the negotiations, sending several e-mails in March 2017 suggesting changes that he hoped might assuage the Board’s legal concerns. In April 2017 Rush sent Dr. Jokich a proposed amend- ment to the 2016 agreement. The proposal, drafted with recommendations from the Board of Trustees, sought to add productivity benchmarks for Dr. Jokich’s practice. He would be eligible for the bonus compensation set out in the 2016 agreement only if the benchmarks were met. Dr. Jokich found the productivity requirements unacceptable and immediately sent an e-mail rejecting the offer. In June Rush returned with another proposed amend- ment to the 2016 agreement. This offer (which we call the “2017 amendment”) likewise added productivity bench- marks, albeit less demanding ones, limiting Dr. Jokich’s eligibility for the bonus compensation set out in the 2016 agreement. The amendment invited Dr. Jokich to accept with his signature. But Dr. Jokich did not sign or otherwise signal acceptance, and unlike his rejection of the first proposed amendment, this time he told no one about his decision. At No. 21-2691 5

his deposition he agreed that he had not accepted the 2017 amendment because “[i]t was basically the same letter that [he] had earlier said [that he] wouldn’t sign.” Although the Board of Trustees had not approved the 2016 agreement and although Dr. Jokich had not accepted the 2017 amendment, Rush provided Dr. Jokich and his team bonuses and benefits consistent with the 2016 agreement. This included paying Dr. Jokich a yearly bonus in October 2017. Dr. Ranga Krishnan, Rush’s Dean and the person responsible for approving Dr. Jokich’s bonuses, explained in a declaration that he signed off on the bonus because he mistakenly believed that Dr. Jokich had accepted the 2017 amendment. B. Conflict and Termination The parties have entered a mountain of evidence catalog- ing a series of conflicts between Dr. Jokich and his col- leagues. We will simplify where we can and focus on the key events. In February 2018 Dr. Jokich e-mailed Dr. Krishnan, Dr. Larry Goodman (who by then was Rush’s CEO), and Rush’s head of surgery to complain about the hospital’s breast surgeons. Dr. Jokich urged the administrators to find an adequate replacement for a recently retired breast sur- geon and criticized the performance of the remaining breast surgeons, two of whom are female. The head of surgery showed the e-mail to the two sur- geons so they could gather evidence to rebut Dr. Jokich’s suggestion that their performances were subpar. After learning of the e-mail, the two female surgeons and Dr. Paula Grabler, a radiologist who worked under Dr. Jokich, raised concerns about him with the hospital’s 6 No. 21-2691

human-resources department. They complained about their working relationship with him generally and suggested that he may have engaged in sex discrimination. Rush’s response to the complaints was twofold. First, Dr.

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