RADIOLOGY SERVICES, PC v. Hall

780 N.W.2d 17, 279 Neb. 553
CourtNebraska Supreme Court
DecidedMarch 12, 2010
DocketS-09-171
StatusPublished
Cited by32 cases

This text of 780 N.W.2d 17 (RADIOLOGY SERVICES, PC v. Hall) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
RADIOLOGY SERVICES, PC v. Hall, 780 N.W.2d 17, 279 Neb. 553 (Neb. 2010).

Opinion

780 N.W.2d 17 (2010)
279 Neb. 553

RADIOLOGY SERVICES, P.C., appellant,
v.
Katherine Rounsborg HALL, appellee.

No. S-09-171.

Supreme Court of Nebraska.

March 12, 2010.

*19 Michael F. Coyle, David J. Stubstad, and Sherman P. Willis, of Fraser Stryker, P.C., L.L.O., Omaha, for appellant.

William R. Johnson, of Lamson, Dugan & Murray, L.L.P., Omaha, and Raymond E. Walden, of Walden Law Office, for appellee.

HEAVICAN, C.J., WRIGHT, CONNOLLY, GERRARD, STEPHAN, McCORMACK, and MILLER-LERMAN, JJ.

WRIGHT, J.

I. NATURE OF CASE

The Lincoln County District Court granted summary judgment in favor of *20 Katherine Rounsborg Hall and dismissed the complaint of Radiology Services, P.C. The complaint alleged that Hall, an attorney, committed professional negligence and disseminated trade secrets during and after her legal representation of Radiology Services. We affirm.

II. SCOPE OF REVIEW

In reviewing a summary judgment, the court views the evidence in the light most favorable to the party against whom the judgment was granted and gives such party the benefit of all reasonable inferences deducible from the evidence. Bamford v. Bamford, Inc., 279 Neb. 259, 777 N.W.2d 573 (2010).

III. FACTS

Radiology Services filed a complaint against Hall alleging that she simultaneously represented Radiology Services and her father, Dr. Gerald Rounsborg, regarding his retirement; assisted Rounsborg in competing with Radiology Services after his retirement; disclosed Radiology Services' confidential and proprietary information; and violated Nebraska's Trade Secrets Act, Neb.Rev.Stat. § 87-501 et seq. (Reissue 2008). Hall moved for summary judgment. The district court for Lincoln County found that there were no material facts in dispute and that the facts did not support Radiology Services' alleged causes of action and theories of recovery. It granted Hall's motion for summary judgment and dismissed the case. Radiology Services appeals.

Radiology Services provides radiology services to hospitals, clinics, and other medical facilities in Nebraska and Kansas. Its principal place of business is North Platte, Nebraska. Rounsborg is a radiologist and former employee of Radiology Services. He was employed with the group from 1979 to March 15, 2004, and was president of the group in 2003. His daughter, Hall, is an attorney licensed to practice law in Nebraska. She became the corporate attorney for Radiology Services in 1995.

1. EMPLOYMENT TERMINATION AGREEMENT REVISED

During her representation of Radiology Services, Hall reviewed and revised Radiology Services' employment termination agreement. In 1997, at Radiology Services' request, she drafted the "Employment Termination Agreement Revised" (ETAR). Paragraph 1.4(c) provided:

An EMPLOYEE electing to receive benefits or compensation under this Agreement agrees to refrain for a period of one year following the date of termination from working for or soliciting work from the CORPORATION's then existing hospital clients or accounts with whom the EMPLOYEE actually did business or had personal contact.

The original agreement specified that employees must be employed by the corporation for 10 years before being eligible for deferred compensation pursuant to the agreement. When the ETAR was drafted, Dr. Warren Orr, the founder of the corporation in the late 1970's, was automatically eligible for deferred compensation benefits, and Rounsborg had already been an employee for more than 10 years and would have been eligible under the original agreement. The ETAR provided that he was eligible for benefits as of April 1, 1989. The ETAR also specified that Dr. Kan Wu, who became an employee in 1992, would be eligible as of August 1, 2002. Drs. Tamara Hlavaty, Sam Liu, and David Hatch all became full-time Radiology Services employees in 1998 or later.

2. ALBERT ROBINSON'S EMPLOYMENT AGREEMENT

In March 1998, Hall drafted an employment agreement for Albert Robinson, a *21 radiology technician with Radiology Services. The agreement included a 1-year noncompete clause. Hall sent it to Radiology Services and suggested that Radiology Services contact her with changes so the agreement could be signed by all parties. She followed up with this request on May 28 and on January 22 and April 1, 1999, indicating that she had not heard back regarding the agreement and asking for a signed copy.

In May 1999, at the request of Radiology Services, Hall sent Radiology Services a list of documents that had not been signed or returned to her. Robinson's employment agreement was on this list. Hall advised that she did not have copies of the documents but understood that all of the unreturned documents had been signed. However, Robinson testified that he never saw the employment agreement and never executed it. Robinson resigned on January 16, 2004, and went to work as the director of marketing for Great Plains Radiology, P.C.

3. ROUNSBORG'S RETIREMENT PLANS

Orr retired from Radiology Services on January 31, 2002. Rounsborg gave written notice to Radiology Services in January 2003 that he intended to retire on or about July 1, 2005, and that he was giving advance notice to give Radiology Services adequate time to plan for his departure and recruit a replacement if necessary.

In late 2003, Rounsborg hired Sam Mazzuca to evaluate Radiology Services. As part of the evaluation, Mazzuca talked with the other radiologists in the group and concluded that Rounsborg might have an alcohol problem. Mazzuca met with Hall, one of Rounsborg's sons, and two of Rounsborg's friends. Mazzuca expressed his concerns about Rounsborg's performance, which included memory loss, depression, and an alcohol problem.

Mazzuca asked Hall to participate in a discussion of these problems with Rounsborg. On December 1, 2003, Hall went with Mazzuca to meet Rounsborg to discuss Mazzuca's concerns. Mazzuca told Rounsborg that Radiology Services wanted him to be evaluated and take a 90-day disability leave. After the 90 days, Rounsborg could go back to work if he complied with any recommendations in the evaluation.

Rounsborg did not agree that he had a problem or with the disability status and continued to work his scheduled hours. Because he believed the other radiologists at Radiology Services were determined that he not return to work, Rounsborg agreed to take what he characterized as a leave of absence with pay from December 15, 2003, through March 15, 2004, and to obtain an alcohol assessment. During this time, Radiology Services paid him $38,194.58.

On December 3, 2003, Hall drafted an agreement between Rounsborg and Radiology Services that gave Rounsborg the option to retire on March 15, 2004. The agreement ended with a disclaimer that Hall was Rounsborg's daughter and that Radiology Services had ample opportunity to seek counsel from another source. Neither party executed this agreement. On December 10, 2003, Wu notified Hall that Radiology Services was discontinuing its relationship with her and seeking alternative counsel to avoid the appearance of a conflict of interest.

At a meeting of Radiology Services' board on January 15, 2004, the board removed Rounsborg as an officer of the corporation and elected Wu to serve as president. It also confirmed the discharge of Hall as the corporation's attorney.

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Bluebook (online)
780 N.W.2d 17, 279 Neb. 553, Counsel Stack Legal Research, https://law.counselstack.com/opinion/radiology-services-pc-v-hall-neb-2010.