Salcedo v. Toepp

696 N.E.2d 426, 1998 Ind. App. LEXIS 1053, 1998 WL 337868
CourtIndiana Court of Appeals
DecidedJune 25, 1998
Docket71A03-9706-CV-189
StatusPublished
Cited by36 cases

This text of 696 N.E.2d 426 (Salcedo v. Toepp) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salcedo v. Toepp, 696 N.E.2d 426, 1998 Ind. App. LEXIS 1053, 1998 WL 337868 (Ind. Ct. App. 1998).

Opinion

OPINION

BAILEY, Judge.

Case Summary

Appellant-Plaintiff, Michael A. Salcedo, D.P.M. (“Dr. Salcedo”), joined the established podiatry practice of Appellee-Defen-dant, Frank C. Toepp, D.P.M. (“Dr. Toepp”), in the late 1980s. On December 31, 1990, Dr. Salcedo contracted with Dr. Toepp to purchase his practice. The transaction was effected through four written contracts executed by Dr. Salcedo and Dr. Toepp. A fifth contract, a written Employment Agreement, was executed by Dr. Salcedo and Dr. Toepp’s wife, Appellee-Cross-Claimant, Rosemary W. Toepp, (“Mrs. Toepp”), for the purpose of continuing Mrs. Toepp’s health insurance provided through the practice. Ultimately, litigation ensued on all the written contracts. A jury trial resulted in the following five verdicts: 1) a verdict in favor of Dr. Salcedo in the amount of $102,597.62 on his claim under the Purchase Agreement; 2) a verdict in favor of Dr. Salcedo on Dr. Toepp’s counterclaim under the Purchase Agreement; 3) a verdict in favor of Dr. Toepp in the amount of $8,933.99 on his claim under his Employment Agreement; 4) a verdict in favor of Dr. Toepp on Dr. Salcedo’s claim under the Lease Agreement, and 5) a verdict in favor of Dr. Salcedo on Mrs. Toepp’s claim under her Employment Agreement.

The Toepps filed an Ind.Trial Rule 50 motion which the trial court granted in part, setting aside the first two verdicts listed above which pertain to the competing claims under the Purchase Agreement, and ordering a new trial on these claims. The trial court entered judgment on the other verdicts. Dr. Salcedo initiated the present appeal in which the Toepps raised several issues for cross-appeal. We reverse and remand with instructions that judgment be entered on all of the jury’s verdicts. We further instruct the trial court to hold a hearing to determine an appropriate amount of attorney’s fees to be awarded under the contracts.

Issues

In total, Dr. Salcedo and the Toepps raise seven issues on appeal, which we restate and consolidate as follows:

I. Whether the trial court erred in setting aside the verdicts in favor of Dr. Salcedo pertaining to the parties’ competing claims under the Purchase Agreement.
II. Whether the amount of the verdict/judgment in favor of Dr. Toepp on his claim under his Employment Agreement was inadequate as a matter of law.
III. Whether the verdiet/judgment against Mrs. Toepp on her claim under her Employment Agreement was contrary to law.
IV. Whether an award of attorney fees is appropriate under the contracts.

Facts

A. Terms of the Contracts

The evidence most favorable to the verdicts reveals that Dr. Salcedo obtained his D.P.M. in 1987. (R. 642-44). At that time, Dr. Toepp was a podiatrist with an established practice in South Bend, Indiana. (R. 649). Dr. Toepp also maintained an office in New Carlisle, Indiana. Id. As Dr. Toepp was approaching retirement, he decided to hire a young podiatrist to whom he could later sell his practice. (R. 646-49). In 1988, *429 Dr. Salcedo joined the practice as Dr. Toepp’s employee. (R. 655).

On December 31, 1990, Dr. Salcedo and Dr. Toepp executed the following contracts: 1) a Purchase Agreement, Exhibit N, 1 under which Dr. Salcedo purchased 'Dr. Toepp’s existing podiatry practice and the goodwill therein; 2) a Lease Agreement, Exhibit 0, under which Dr. Salcedo leased the building used for the practice from Dr. Toepp; 3) a Consulting Agreement, Exhibit P, under which Dr. Salcedo agreed to pay Dr. Toepp for consulting services; and 4) an Employment Agreement, Exhibit Q, under which Dr. Toepp would work as Dr. Salcedo’s employee. As noted above, a fifth contract, another Employment Agreement, Exhibit V, was executed between Dr. Salcedo and Mrs. Toepp. These written agreements which are the subject of this litigation were entered into to effect the sale of Dr. Toepp’s South Bend podiatry practice to Dr. Salcedo, while enabling Dr. Toepp to keep his office in New Carlisle. (Ex. N).

The Purchase Agreement, which incorporated all the other agreements by reference, provided that Dr. Salcedo would purchase Dr. Toepp’s practice for $251,275.00, with almost $80,000.00 of that amdunt allocated to the six-year noncompetition agreement which was contained in the Employment Agreement and read, in pertinent part, as follows:

Upon termination of employment and for a three (3) year period thereafter, [Dr. Toepp] will not disclose, communicate, or divulge to any person, firm, partnership, association or corporation the names or addresses of patients, techniques, know-how or other confidential information used in the business of [Dr. Salcedo]. Further, during said three year period [Dr. Toepp] shall not engage in any business in competition with the business of [Dr. Salcedo] within the geographical area of South Bend, Indiana, and that area within a ten (10) mile radius measured from [the South Bend podiatry office], either directly or indirectly as an officer, employee, consultant, partner, individual proprietor, manager, or as an investor contributing capital stock or purchasing any stock, or lease any property which engages in or owns such a business.... As compensation for the foregoing non-competition agreement [Dr. Salcedo]. agrees to pay [Dr. Toepp] the sum of $78,275.00, the terms and conditions of which is [sic] provided for in a Purchase Agreement entered into contemporaneously herewith between the parties.

(Ex. Q, ¶ 6). Thus, the term of the noncom-petition agreement was to expire six years later on December 31, 1996. As partial payment for the practice, the Purchase Agreement provided that Dr. Salcedo would give Dr. Toepp a promissory note in the amount of $178,275.00 payable in sixty monthly installments of approximately $3,000.00 per month. (Ex. N, ¶ 3C).' The Purchase Agreement had two clauses which addressed attorney fees. The first read:

The parties shall indemnify and hold harmless the other against and in respect of any and all representations and warranties made herein, the conditions herein expressed, and in the event of a dispute the prevailing party successful in that dispute shall be entitled to all reasonable costs, including reasonable attorney’s fees to be paid it.

(Ex. N, ¶ 7D). The second clause read:

Reasonable attorney’s fees and legal expenses incurred by either party in pursuing its rights and remedies shall be paid by the unsuccessful party to such dispute....

(Ex. N, ¶ 11 A).

' Dr. Toepp’s Employment Agreement provided that he would be compensated as follows:

For all services rendered to [Dr. Salce-do] by [Dr. Toepp], [Dr. Salcedo] agrees to pay semi-monthly all income earned by [Dr. Salcedo] from work and employment [sic] credits earned through the efforts of [Dr. Toepp] equal to 40% of the amount collected, excluding any non-payable amounts_ [Dr. Salcedo] guarantees [Dr. Toepp] work equal to fifty percent (50%) of all new patients received by [Dr. Salcedo] during the term of the Employment Contract with the same 40% being

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Cite This Page — Counsel Stack

Bluebook (online)
696 N.E.2d 426, 1998 Ind. App. LEXIS 1053, 1998 WL 337868, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salcedo-v-toepp-indctapp-1998.