Renal Treatment Centers—Missouri, Inc. v. Braxton

945 S.W.2d 557, 1997 Mo. App. LEXIS 612, 1997 WL 160366
CourtMissouri Court of Appeals
DecidedApril 8, 1997
Docket71253
StatusPublished
Cited by8 cases

This text of 945 S.W.2d 557 (Renal Treatment Centers—Missouri, Inc. v. Braxton) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Renal Treatment Centers—Missouri, Inc. v. Braxton, 945 S.W.2d 557, 1997 Mo. App. LEXIS 612, 1997 WL 160366 (Mo. Ct. App. 1997).

Opinion

*559 SIMON, Judge.

Renal Treatment Centers-Missouri, Inc. (RTC) appeals from a denial of its petition for temporary injunction, injunctive relief and the granting of partial summary judgment in favor of Frank W. Braxton, M.D. (Braxton).

On appeal RTC contends that the trial court erred in entering judgment for Braxton on the grounds that: (1) RTC failed to prove a protectable interest in its patient contacts because a) Missouri law does not require proof of protectable interests, in that Brax-ton was an independent contractor rather than an employee and b) RTC established a protectable interest in patient contacts, in that Braxton is the personal physician for virtually all of the patients in question; (2) there was no evidence of unfair competition because Missouri law does not require such proof in this action; (3) RTC failed to establish separate consideration for the non compete clause because a) Missouri law does not require proof of separate consideration, in that Braxton is an independent contractor rather than an employee, b) the covenant not to compete is enforceable based on the consideration Braxton receives for the 1992 final agreement and c) Braxton is estopped from challenging the non compete on this basis in that he accepted all benefits of the contract and is therefore bound to its burdens; (4) RTC had anticipatorily breached its contract to give him an equity interest because a) RTC was not obliged to give Braxton an equity interest in that the 1992 final agreement superseded the 1991 agreement and imposed no such obligation, b) the 1991 agreement with respect to an equity interest was unenforceable in that it was merely an agreement to agree, e) RTC did not manifest a positive intention not to perform and d) Braxton is estopped from challenging the non compete in that he accepted all benefits of the contract and is therefore bound to its burdens and (5) the 1991 agreement did not prohibit Braxton from owning or operating a dialysis facility because a) the 1991 agreement is irrelevant to this case, in that the 1992 final agreement superseded it and did prohibit Braxton from owning or operating a dialysis facility and b) Braxton has admitted that the 1992 agreement did prohibit him from owning or operating a dialysis facility. Finally, RTC contends the trial court erred in granting partial summary judgment for Braxton regarding the Jackson facility because RTC made a submissible case to enforce the non compete clause at that facility in that it presented uncontradicted evidence that Braxton was participating in and assisting at the facility. We affirm.

The record indicates that RTC, a Missouri corporation, owns and operates hemodialysis facilities, dialysis treatment centers, in Cape Girardeau, Poplar Bluff, and Kennett, Missouri. It is a successor corporation to several corporations formerly owned by Robert Falk (Falk). Braxton is a Missouri physician, certified as a nephrologist, and treats patients with kidney disease.

Braxton came to Cape Girardeau as an employee of the Internal Medicine Group (IMG). Subsequent to Braxton’s arrival, Falk came to Cape Girardeau in order to establish a dialysis treatment center and later expanded his business by opening a treatment center in Poplar Bluff. Falk contacted IMG and requested that it provide a director for his two facilities. An agreement was reached and Braxton served as medical director for Falk’s two facilities through his contract with IMG.

In addition to his employment with IMG, Braxton supplemented his income by working in the emergency room at Twin Rivers Regional Medical Center (Twin Rivers) in Kennett, Missouri. During the time of his employment at Twin Rivers, it decided that it needed a dialysis unit, established such a unit and hired Braxton as medical director.

In 1991 Braxton separated from IMG and accepted identical contracts from Falk to be the medical director of the Cape Girardeau and Poplar Bluff facilities. The contracts differed only by location of the facility.

After signing the contracts, Braxton realized that they contained language the parties had not orally agreed to. Braxton instructed an attorney to communicate with Falk about the disparities. The contentions concerned the binding effect of the contract and the *560 scope and meaning of the covenant not to compete. Paragraph 6(b) states:

During the term of this Agreement and for a period of two (2) years thereafter, Medical Director and all Physicians affiliated with Medical Director, will not engage, directly or indirectly, either as principal, agent, proprietor, shareholder, director, officer or employee or participatant in ownership, management, operation or control of any hemodialysis facility within a ... 75 mile radius of the CENTERS, with the exception of the Kennett, Missouri dialysis facility or if mutually agreed by both parties.

The language of the contracts created two circles, each with a 75 mile radius. One had Cape Girardeau at its center and the other, Poplar Bluff. The contracts also made clear that they only related to Braxton’s role as a medical director and were not to interfere with or impede his “ability to practice medicine.” Each of the contracts had identical non compete language.

Because of Braxton’s complaints concerning the ambiguities in paragraph 6(b) and its two-year post-termination application, Falk and Braxton agreed to amend paragraph 6(b) and specifically state what conduct and acts were intended to be prohibited. The amendment provided:

1) Clarification Paragraph 6, Section (b): The purpose of this paragraph section (b) is to preclude [Braxton] from contracting with another dialysis units [sic] for any form of reimbursement/profit that adversely affects the operations of the CENTERS.

In the Fall of 1992, Falk purchased the dialysis unit in Kennett from Twin Rivers. Shortly thereafter, Falk offered Braxton a new contract making him the medical director of all three facilities. The new contract did not contain the “Kennett exception.” Braxton refused to sign the contract. As a result, the parties executed one unitary contract covering all three facilities dated September 1,1992. Paragraph 6(b), creating the two 75 mile circles, and the “Kennett exception” were included in the contract.

In late 1993, Braxton constructed and began to operate his own dialysis facility in Osceola, Arkansas. Osceola is located more than 75 miles from Cape Girardeau and Poplar Bluff but less than 50 miles from Kennett. The opening of the facility occurred in December 1993. Falk did not object to the Osceola unit and has never asserted that Braxton’s ownership or operation of the Osceola facility was in violation of the non compete agreement.

Subsequently, following a series of unsuccessful discussions and negotiations by the parties for changes in the contract, Braxton used his interpretation of the “Kennett exception” to open a dialysis center in Kennett, Missouri. To that end, he purchased real estate in Kennett and began construction.

Meanwhile, in 1995 in Jackson, Missouri, Dr. Ramiro Icaza (Icaza) decided to expand his ventures by opening a dialysis center in Jackson and he began to build a facility. It was to be incorporated as Cape County Dialysis Center, Inc. (the Jackson facility). Icaza hired Dr. Kira Stern to be the medical director of the facility.

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Bluebook (online)
945 S.W.2d 557, 1997 Mo. App. LEXIS 612, 1997 WL 160366, Counsel Stack Legal Research, https://law.counselstack.com/opinion/renal-treatment-centersmissouri-inc-v-braxton-moctapp-1997.