Pinnacle Anesthesia Consultants, P.A. v. Fisher

309 S.W.3d 93, 2009 WL 1801032
CourtCourt of Appeals of Texas
DecidedMay 10, 2010
Docket05-07-01042-CV
StatusPublished
Cited by28 cases

This text of 309 S.W.3d 93 (Pinnacle Anesthesia Consultants, P.A. v. Fisher) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pinnacle Anesthesia Consultants, P.A. v. Fisher, 309 S.W.3d 93, 2009 WL 1801032 (Tex. Ct. App. 2010).

Opinion

OPINION

Opinion By

Justice MOSELEY.

Dr. Neal Fisher’s employment agreement with Pinnacle Anesthesia Consultants, P.A. provided that he could be terminated for “cause,” which was defined in the agreement as any of sixteen different reasons. Fisher sued Pinnacle, alleging (among other things): breach of contract based on its termination of the employment agreement without cause; slander; and conversion. The principal dispute between the parties is whether Pinnacle terminated Fisher without cause.

The trial court granted partial summary judgment for Fisher on his breach of contract claim, deciding that he had conclusively negated thirteen of the termination-for-cause grounds stated in the agreement. A jury found in favor of Fisher on the other three termination-for-cause grounds; it also found for Fisher on his slander and conversion claims. The trial court rendered a final judgment in favor of Fisher. *97 Pinnacle appeals, asserting the trial court erred in granting partial summary judgment and complaining of certain trial rulings. For the reasons below, we reject Pinnacle’s arguments, resolve its issues against it, and affirm the trial court’s judgment.

I. FACTUAL AND PROCEDURAL BACKGROUND

Fisher is a board-certified anesthesiologist. In 1990, he joined Dallas Anesthesia Associates, a group of anesthesiologists that provided obstetric anesthesia services at Presbyterian Hospital in Dallas. In 1999, the successor to Dallas Anesthesia Associates merged with Pinnacle, a group of anesthesiologists practicing in North Texas. Pinnacle continued to provide obstetric anesthesia services to Presbyterian. Fisher signed an employment agreement with Pinnacle and thereby became its employee and a member of its Dallas Division.

A. The Employment Agreement

Pursuant to the agreement, Fisher agreed to provide anesthesiology services exclusively to Pinnacle’s patients on a full-time basis at certain locations. His duties as a physician included performing both anesthesiology services and administrative duties and following Pinnacle’s professional standards of quality and its practice protocols and policies. The agreement provided that it was automatically renewed for one-year terms “unless terminated in accordance with the terms of this Agreement.” Section 4.2(a) of the agreement, entitled “Termination For Cause,” provided that, upon an affirmative vote of certain percentages of Pinnacle’s outstanding shareholders and of Pinnacle’s directors in attendance at a meeting at which a quorum was present, Pinnacle could terminate the agreement “immediately for cause.” Section 4.2(a) also contained fourteen subsections, which defined “cause” to mean any of sixteen different reasons. 1 These subsections will be discussed in more detail herein.

The agreement also contained an article (Article VI) entitled “Noncompetition”; section 7.1 of this article states “Left Intentionally Blank.” The remainder of the article does not include a non-competition agreement, and there is no dispute that Fisher was not subject to such an agreement.

B. The Meeting

On January 10, 2004, Fisher was informed that a meeting of Pinnacle’s Dallas Division would be held on January 22. Fisher was told he and his attorney could attend the meeting, but he was not told the meeting’s subject. Some portions of the meeting were “closed door” as to Fisher and his attorney; however, Fisher recorded those portions of the meeting he was permitted to attend, apparently with the knowledge of those participating. A transcript of that recording was submitted as evidence during the summary judgment proceedings and was also admitted into evidence at trial.

Early portions of the meeting, which were recorded and which included all shareholders of the Dallas Division, its attorneys, and Fisher and his attorney, involved allegations of several clinical and *98 administrative incidents concerning Fisher. Fisher defended himself, stating that the incidents had been reviewed by the hospital, were untrue, or were just allegations with no documentation. He stated his belief that he was being targeted for termination by the Dallas Division’s management because he had questioned what he perceived as Pinnacle’s business plan of billing as many procedures as possible out-of-network in order to increase Pinnacle’s profits.

Fisher was asked to agree to submit to Pinnacle’s peer review process, which would have included, among other things, a psychiatric evaluation and a blood test for drugs. Fisher volunteered to take any type of drug test (“a hair sample, urine, blood, everything ... ”), but refused to submit voluntarily to Pinnacle’s peer review process, stating that he believed such a peer review would be a “kangaroo court.”

During a final portion of the meeting (also recorded), Fisher was told he had to agree to five conditions to remain in Pinnacle: (1) submit to Pinnacle’s peer review process for clinical incidents; (2) agree to a two-year probation for administrative matters; (3) sign a three-year non-compete agreement; (4) withdraw from another physician group; and (5) agree to pay Pinnacle’s attorney’s fees and expenses in connection with the January 22 meeting. These were described as “the tickets for him to get back in and really integrate.” Fisher was told that if he chose not to agree to the conditions, he must leave Pinnacle. He was given a deadline of 5:00 p.m. the following day to respond, but Fisher stated immediately that he would not agree to the conditions. (No evidence was admitted at trial or in connection with the earlier partial summary judgment hearing contradicting these statements.)

After the next day’s deadline, Pinnacle wrote Fisher that it was proceeding to terminate him for cause under the agreement. It also withheld fees due to Fisher in order to reimburse itself for its attorney’s fees incurred in connection with the January 22 meeting.

C. The Lawsuit

Fisher sued Pinnacle, alleging breach of contract (for terminating without cause), slander (for statements made about Fisher during and after the meeting), conversion (for withholding fees from Fisher), and other causes of action.

Pertinent to his breach of contract claim, Fisher contended that: (1) the employment agreement overcame the presumption that he was an at-will employee; (2) he could only be terminated for “cause” as defined in the agreement; (3) nothing in the agreement required him to accept any of Pinnacle’s five demands for continuing his employment; and thus (4) Pinnacle breached the agreement by constructively terminating him without cause at the meeting. There appears to be no dispute as to Fisher’s first two contentions; however, Pinnacle disputed the latter two contentions. Specifically, Pinnacle claimed that Fisher’s actions before and during the meeting constituted “cause” to terminate him under the agreement, and that it thereafter terminated Fisher for cause pursuant to the agreement after Fisher refused Pinnacle’s demands.

The trial court granted Fisher’s traditional motion for partial summary judgment in part and denied it in part.

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Bluebook (online)
309 S.W.3d 93, 2009 WL 1801032, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pinnacle-anesthesia-consultants-pa-v-fisher-texapp-2010.