Richard S. Brown v. Cooper Clinic, P.A.

734 F.2d 1298, 1984 U.S. App. LEXIS 22324
CourtCourt of Appeals for the Eighth Circuit
DecidedMay 21, 1984
Docket83-1369
StatusPublished
Cited by13 cases

This text of 734 F.2d 1298 (Richard S. Brown v. Cooper Clinic, P.A.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richard S. Brown v. Cooper Clinic, P.A., 734 F.2d 1298, 1984 U.S. App. LEXIS 22324 (8th Cir. 1984).

Opinion

PER CURIAM.

Richard S. Brown, M.D. appeals from an order of the district court 1 granting a motion for a directed verdict in favor of the Cooper Clinic, P.A. on his claim against the clinic for accounts receivable. For reversal, Dr. Brown argues that the district court erred in finding that he was an employee of the clinic, that when he terminated his employment he was no longer entitled to compensation, and in failing to consider his unjust enrichment claim. We affirm.

By letter dated July 12, 1979, the clinic offered Dr. Brown a position on its surgery staff. The letter stated that Dr. Brown would be given a guaranteed annual income of $42,000 and that for any month the “Cooper Clinic income distribution plan” produced more than the guaranteed monthly income, Dr. Brown would receive the larger amount. In addition, the clinic of *1300 fered Dr. Brown benefits, such as health, life, disability, and malpractice insurance, a leased automobile and its expenses and a two-week paid vacation. At the beginning of his third year, Dr. Brown would be compensated as a stockholder of the clinic.

Dr. Brown signed the letter on September 11, 1979, and began work at the clinic in November 1979. On September 1, 1981, Dr. Brown informed the clinic administrator that he intended to terminate his employment with the clinic effective January 1, 1982. Dr. Brown asked the administrator how he would receive his portion of the clinic’s accounts receivable after he left the clinic. The administrator told Dr. Brown he would not be entitled to any portion of the accounts receivable. The clinic’s executive board affirmed the administrator’s decision. Instead of leaving the clinic on January 1, 1982, Dr. Brown left in October 1981.

On January 1, 1982, Dr. Brown filed suit against the clinic, alleging that “[u]nder the terms of the agreement,” the clinic owed him $41,548.46, which represented Dr. Brown’s portion of the “total accounts receivable” computed pursuant to the clinic’s income distribution plan. Appellant’s First Amended Complaint, ¶ 6.

The “Cooper Clinic income distribution plan” was a formula whereby monies collected monthly for billed clinic services would be allocated for various clinic expenses. Forty-five percent of the monthly collections were distributed to the surgery department. According to agreements with other members of the surgery department, Dr. Brown would receive forty percent of the collections as his monthly salary under the plan. “Collections” were monies received monthly on payments of accounts. “Accounts receivable” were amounts billed but not yet collected for services rendered. There was approximately a one to three-month delay in the collection of the accounts receivable.

It is undisputed that the letter agreement of July 12, 1979, is silent concerning Dr. Brown’s entitlement to accounts receivable in the event of termination. Dr. Brown testified that when he left the clinic he expected to be paid a portion of the fees billed but not yet collected for surgical procedures that he had performed at the clinic. Dr. Brown admitted, however, that prior to his discussion with the clinic administrator, he had never discussed this issue with any member of the clinic. The clinic’s unwritten policy was that physicians were not entitled to any portion of the clinic’s accounts receivable on departure.

At the close of Dr. Brown’s evidence, the clinic moved for a directed verdict. The clinic argued that Dr. Brown had alleged in his complaint that he was entitled to a portion of the clinic’s accounts receivable pursuant to the clinic’s income distribution plan and that Dr. Brown’s evidence was that the income distribution plan was based on collections, not on accounts receivable. The clinic also argued there was no evidence of any other agreement that would entitle Dr. Brown to a portion of the amounts receivable. In response, Dr. Brown’s counsel contended that he was not requesting “accounts receivable per se” but only a portion of the fees attributable to services Dr. Brown performed prior to his departure. Counsel explained that his theory of recovery was not based on an agreement but was more in the nature of an implied contract, with the measure of damages to be computed according to the agreement. Over the clinic’s objection, Dr. Brown’s counsel moved to amend his pleadings to conform to the evidence.

The district court granted the clinic’s motion for a directed verdict. The district court found that Dr. Brown was an employee of the clinic and further observed that the clinic’s income distribution plan was based on collections and that the agreement was silent on compensation in the event of termination. It concluded that there was a total failure of proof that Dr. Brown was entitled to any portion of the accounts receivable, and that “when the doctor ceased to be an employee of the clinic ... his monthly salary terminated” and “all right to any further compensation ceased.”

*1301 After the court made its oral rulings, Dr. Brown’s counsel in effect moved to renew his motion to amend his pleadings to allege an unjust enrichment claim. Counsel conceded that the “facts were not that [Dr. Brown] was entitled to the clinic’s accounts receivable as accounts receivable.” The district court rejected his argument, stating that the complaint had not pleaded quantum meruit and that the case had been tried on the written agreement.

On appeal Dr. Brown argues that the district court erred in failing to consider his unjust enrichment claim. Fed.R. Civ.P. 15(b) provides “(w)hen issues not raised by the pleadings are tried by the express or implied consent of the parties,” a party may move to amend his pleadings to conform to the evidence. The purpose of the rule “is to bring the pleadings in line with the actual issues upon which the case was tried[.]” Dependahl v. Falstaff Brewing Corp., 653 F.2d 1208, 1218 (8th Cir.), (quoting Gallon v. Lloyd-Thomas, Co., 264 F.2d 821, 825 n. 3 (8th Cir.1959)), cert. denied, 454 U.S. 968, 102 S.Ct. 512, 70 L.Ed.2d 384 (1981). However, “an amendment after judgment is not permissible which ... changes the theory on which the case was actually tried, even though there is some evidence in the record introduced as relevant to some other issue which would support the amendment.” Dependahl v. Falstaff Brewing Corp., 653 F.2d at 1218 (emphasis deleted). Further, “in determining whether to permit an amendment under Fed.R.Civ.P. 15(b), the district court has broad discretion and will not be reversed except upon a showing of abuse.” Nielson v. Armstrong Rubber Co., 570 F.2d 272, 276 (8th Cir.1978). The district court denied Dr. Brown’s motion because the court found that the case had not been tried on an unjust enrichment theory. We find no abuse of discretion. Compare Howard v. Green,

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734 F.2d 1298, 1984 U.S. App. LEXIS 22324, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richard-s-brown-v-cooper-clinic-pa-ca8-1984.