Smith v. Williams

CourtDistrict Court, D. Kansas
DecidedOctober 4, 2023
Docket2:20-cv-02224
StatusUnknown

This text of Smith v. Williams (Smith v. Williams) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Williams, (D. Kan. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

KOLETTE SMITH,

Plaintiff,

vs. Case No. 20-CV-2224-EFM

BRIAN WILLIAMS and LABETTE COUNTY MEDICAL CENTER d/b/a LABETTE HEALTH,

Defendants.

MEMORANDUM AND ORDER

Plaintiff Dr. Kolette Smith brings suit against Defendants Brian Williams and Labette County Medical Center d/b/a Labette Health. The four remaining claims against Defendants include a claim under 42 U.S.C. § 1983 for denial of a property interest without due process of law, tortious interference with prospective economic advantage, false light invasion of privacy, and defamation. Before the Court is Plaintiff’s Motion for Partial Summary Judgment (Doc. 106) and Defendants’ Motion for Summary Judgment (Doc. 109). For the reasons stated in more detail below, the Court denies Plaintiff’s motion as moot and grants Defendants’ motion. I. Factual and Procedural Background1 Plaintiff Kolette Smith is a physician licensed in Kansas. Defendant Labette Health is a county hospital, which is a governmental entity in Kansas. Defendant Brian Williams has served as President and Chief Executive Officer of Labette Health since September 1, 2015. From 1999 to January 2018, Plaintiff performed services and had physician privileges at Labette Health.

A. Contractual Agreements There are four written contractual agreements that pertain to Plaintiff’s working relationship with Labette Health. The first agreement is the “Physician Independent Contractor Agreement,” dated February 13, 2011. This agreement contains a non-compete provision stating: The parties acknowledge that Physician is receiving substantial benefit from the Agreement. Furthermore, it is recognized that Physician may terminate this Agreement without cause, as provided in Article 5. Upon termination of this Agreement, Physician shall not be subject to any non-competition agreement so long as Physician does not provide physician services provided by Physician herein in affiliation with another hospital, health maintenance organization, preferred provider organization, independent practice association, or integrated health care delivery system not affiliated with Medical Center (collectively “Other Health Care Entities”) within a sixty (60)-mile driving distance of Medical Center. Otherwise, Physician shall not provide, within a sixty (60)-mile driving distance of Medical Center, health care services in affiliation with such Other Health Care Entities or similar health care entities during the term of this Agreement or for a period of two (2) years following the termination of this Agreement without the prior written consent of the Board of Directors of Medical Center.

The agreement set forth a term/duration of the agreement and defined it as: The initial term of this Agreement shall begin on the 13th day of February 2011, (the “Start Date”), and extend for a period of three (3) years thereafter (“Initial Term”), subject to earlier termination as hereafter provided. The one (1)-year period following the Start Date shall be Contract Year 1 and the one (1)-year period following each anniversary of the Start Date shall be subsequent Contract Years.

1 The facts are those uncontroverted by the parties. Finally, the agreement also contains a provision stating that the agreement “is contingent upon approval of the Board of Trustees of Medical Center which shall be evidenced by the certification of the Secretary of said Board below.” This agreement was not signed by Plaintiff, anyone on behalf of Labette Health, or the Secretary of the Board. The second agreement, dated February 13, 2011, is the “Amendment to PRN Emergency

Department Physician Independent Contractor Agreement.” This agreement does not contain a separate non-compete provision, a duration provision, or terms requiring board approval. It was not signed by Plaintiff or anyone on behalf of Labette Health. The third agreement is the “Emergency Department Physician Independent Contractor Agreement,” dated June 6, 2012. Like the February 13, 2011, Physician Independent Contractor Agreement, this agreement contained the same non-compete provision and the same provision stating that the agreement was contingent upon board approval, as evidenced by the certification of the Secretary of the Board. The provision regarding the term/duration was similar, except the initial term began on June 6, 2012, and it extended three years past that date. Plaintiff and Jodi

Schmidt, as President and CEO of Labette Health (at that time), signed this agreement. There was no signature from the Secretary of the Board. The fourth agreement is the “Physician Independent Contractor Agreement.” This agreement is dated August 1, 2021, but the parties agree that a typographical error exists, and the date should read August 1, 2012. This agreement also contains the same non-compete provision. In addition, the agreement contains provisions that state the initial term of the agreement begins on February 13, 2011, the agreement requires board approval, and the agreement is the entire agreement between the parties.2 This agreement was not signed by Plaintiff or anyone on behalf of Labette Health. B. 2017 through the Present On Thursday, June 22, 2017, Labette Health employee Tom Macaronas emailed Williams under the subject heading of “FW: Smith Emergency Dept Physician Ind Contractor Agr” and

stated: “Brian I stumbled across this. Yes I know it is unsigned. . . t” Williams responded to this email stating “I am thinking that most likely a contract was signed but we do not have a copy. Sandy can you look for this agreement signed? Thanks Brian” Williams asked Sandy Beisel to find signed copies of Smith’s agreements. On June 27, 2017, Beisel emailed Williams, identifying three documents:

2011.2.13 Kolette Smith MD – Physician Independent Contractor Agreement (Unsigned and not board approved)

2011.02.13 Kolette Smith MD – Amendment to PRN Emergency Depart. Physician Independent Contractor Agreement (Unsigned – did not need board approval)

2012.06.06 Kolette Smith MD – Emergency Department Physician Independent Contractor Agreement (Signed – but no board approval)

2 The parties agree that the August 1, 2012 agreement contains these provisions, but the document submitted to the Court by the parties does not include all pages of this agreement. Only three pages of the agreement were included, and these pages do not have the provisions referenced above. Williams testified that he believed that all the agreements were in force, even the ones that were not signed. In addition, Williams believed that the Emergency Department Physician Independent Contractor Agreement was “evergreen,” or would automatically renew for consecutive years until terminated. While Smith was providing services to Labette Health from 2012 to 2018, she was an

employee of Quality Care, LLC, an entity co-owned by Smith. From February 13, 2011 to September 25, 2011, Labette Health paid Smith $500 per calendar day to provide hospitalist coverage services to Labette Health. From September 26, 2011 to January 31, 2018, Smith was paid $1000 per calendar day to provide hospitalist coverage services to Labette Health. This pay is consistent with the rate of pay set forth in the June 6, 2012 Emergency Department Physician Independent Contractor Agreement. In the fall of 2017, Smith and Labette Health initiated discussions to enter into a new independent contractor agreement. On September 18, 2017, Smith prepared a Letter of Intent to negotiate and execute a new independent contractor agreement with Labette Health for her medical

services.

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Smith v. Williams, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-williams-ksd-2023.