Stankiewicz, MD, FAAD v. DuPage Medical Group, Ltd.

CourtDistrict Court, N.D. Illinois
DecidedOctober 13, 2020
Docket1:18-cv-03823
StatusUnknown

This text of Stankiewicz, MD, FAAD v. DuPage Medical Group, Ltd. (Stankiewicz, MD, FAAD v. DuPage Medical Group, Ltd.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stankiewicz, MD, FAAD v. DuPage Medical Group, Ltd., (N.D. Ill. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

KELLY STANKIEWICZ, ) MD, FAAD, ) ) Plaintiff, ) ) No. 18 C 3823 v. ) ) Judge John Z. Lee DUPAGE MEDICAL GROUP, ) LTD., d/b/a DUPAGE MEDICAL ) GROUP, an Illinois corporation, ) ) Defendant. )

MEMORANDUM OPINION AND ORDER

For Plaintiff Dr. Kelly Stankiewicz, a month makes all difference. If her employment at Defendant DuPage Medical Group (“the Group” or “DMG”) ended on July 31, 2017 (as the Group claims), the Group would have enjoyed the right to redeem her ownership shares for just $11,000. On the other hand, if Stankiewicz secured permission from the Group to stay on for a few more weeks thereafter (as she claims), the value of her shares would have soared to approximately $1 million. Convinced that the Group agreed to delay her departure from the medical practice, Stankiewicz seeks a declaratory judgment that the Group failed to pay a fair value for her shares, in violation of the Illinois Business Corporation Act, 805 ILCS 5/1.01 et seq. In response, the Group has moved for summary judgment. Because a reasonable trier of fact could find in Stankiewicz’s favor, however, the motion is denied. I. Background1 A. Stankiewicz’s Role at the Group The Group employs over 700 physicians at 120 locations in the Chicago area.

Pl.’s Stmt. Additional Facts (“SOAF”) ¶ 1, ECF No. 74. Starting in 2011, Stankiewicz worked as a dermatologist at the Group’s Naperville office. Def.’s Stmt. Material Facts (“SOF”) ¶ 13, ECF No. 69; SOAF ¶ 4. She reported to Dr. Ashish Bhatia, the physician-site leader for that office. SOF ¶ 32; SOAF ¶ 4. At the outset, Stankiewicz and the Group entered into an Employment Agreement authorizing either party to terminate her employment with “ninety days prior written notice.” Def.’s Ex. 2-A, Employment Agreement § 3.1(c), ECF No. 69-

16. The Agreement also specified that “[a]ll notices or communications to the Medical Group shall be delivered or mailed to the attention of its President or its Chief Executive” (“CEO”).2 Id. § 12.1. Two years after she started, Stankiewicz acquired 1,000 common shares in the Group. SOF ¶¶ 19–22. In doing so, she signed a Shareholder Agreement acknowledging that the shares “shall be automatically redeemed” by the Group if

certain events occurred, including: (c) The termination of employment of the Shareholder with the

1 The following facts are undisputed or have been deemed admitted, unless otherwise noted.

2 The parties dispute whether the Group’s physicians understood this policy to mean that only the CEO or President retained authority to alter the terms and conditions of their employment. See Pl.’s Resp. Def.’s Stmt. Material Facts (“RSOF”) ¶¶ 12, 17, ECF No. 74. 2 Group for any reason; [and]

(d) The decision of the Shareholder to terminate his interest in the Group as a Shareholder[.]

Id. ¶¶ 19–20; Def.’s Ex. 2-C, Shareholder Agreement § 2, ECF No. 69-19. B. Stankiewicz’s Resignation Drawn by the promise of less crime and more employment opportunities, Stankiewicz and her husband decided to move from the Chicago area to Park City, Utah, in 2017. SOF ¶¶ 24–26. To that end, Stankiewicz emailed Susan Ruggio, the Practice Manager for the Group’s Naperville office, on April 24, 2017. Id ¶¶ 27– 29. In relevant part, Stankiewicz’s email stated: I would like to send out emails to DMG headquarters and the office sometime this week. Preferably as early as tomorrow. Can you check these messages and let me know what you think the best procedure is? Who should I address this email to in headquarters? . . . .

To DMG headquarters: It is with mixed emotions that I inform you of my exit from DuPage medical group. I am available to complete my duties here until the end of July. After this, my family and I will be moving to Park City, UT.

Id. ¶ 29. The next day, Ruggio replied: As far as DMG I would say Dennis [Fine, Chief Operating Officer] and Mike Kasper [Chief Executive Officer]. Do you have any obligation to the [B]oard? Maybe Dr. Merrick [President of the Board] would cover that portion. I would maybe check with Dr[.] Bhatia on that as I’m not sure.

Def.’s Ex. 2-D, 4/25/17 Email from S. Ruggio to K. Stankiewicz, ECF No. 69-20. Later that day, Ruggio advised Stankiewicz that she had “talked to Dr. Bhatia 3 about who to send the letter to. He said to send it to him (as dept. chair and site leader I presume) and he will forward on.” Pl.’s Ex. C-3, 4/25/17 Email from S. Ruggio to K. Stankiewicz, ECF No. 74-50; see Def.’s Ex. 1-A, Stankiewicz Dep.

(“Stank. Dep.”) at 71:4–72:6, ECF No. 69-2. Consistent with Ruggio’s instructions, Stankiewicz directed her resignation email message to Bhatia. SOF ¶ 32; see Def.’s Ex. 2-E, 5/1/17 Email from K. Stankiewicz to A. Bhatia, ECF No. 69-21. In turn, Bhatia transmitted that message to the Group’s senior leaders. See Def.’s Ex. 2-F, 5/2/17 Email from D. Fine to B. Pearlman, ECF No. 69-22. Other Group employees apprised Stankiewicz’s patients about her departure, advised hospitals and health plans that July 31, 2017 would be

her last day, and arranged for her access to patient records to terminate on that date. SOF ¶¶ 35, 37–40. C. Stankiewicz’s Attempt to Stay That summer, Stankiewicz learned that the Group was planning to sell one of its assets to a private equity firm in the coming months. SOF ¶ 42. That transaction promised to dramatically increase the value of the Group’s shares.

RSOF ¶ 65. Indeed, Stankiewicz estimates that her 1,000 shares—for which she originally paid $11,000—would have been worth about $1 million after the transaction closed. Id. So, a week before her scheduled departure, Stankiewicz asked Ruggio and Bhatia if it would be possible for her to stay through the end of August. Id. ¶ 47.

4 At that point, Ruggio began “notif[ying] all the departments [she] could think of by email.” Pl.’s Ex. B-22, 7/25/2017 Email from S. Ruggio to C. Sagredo, ECF No. 74- 36. For example, she sent an email blast informing dozens of the Group’s employees

that “Dr. Stankiewicz has decided to stay on until the end of August.” See Pl.’s Ex. C-8, 7/24/2017 Email from S. Ruggio to B. Glisson, ECF No. 74-55. Bhatia then forwarded that email to Stankiewicz with the comment: “Looks like [Ruggio] made [the extension] happen!” SOAF ¶ 21. Two days later, Ruggio told Stankiewicz that she could stay on through August 31, 2017. Id. ¶ 20. Specifically, Ruggio wrote: Glad you will be here for another month. I did submit everything to the appropriate parties with an end date of 8/31. I worked with Claudia Seg[r]ado the credentialing manager who walked me through the appropriate steps in notifying everyone of the change from 7/31 to 8/31.

Id. At the same time, other Group employees placed patients on Stankiewicz’s August schedule, extended her malpractice insurance coverage, and notified hospitals and health plans about her new end date. Id. ¶¶ 19, 24, 26, 27, 45. The next day, July 27, Stankiewicz emailed a notice to the Group’s President and CEO asserting her right as a shareholder to dissent from the planned transaction. Id. ¶ 33. Four days passed. Id. ¶ 37. Finally, on July 31, the CEO sent Stankiewicz a message purporting to reject her offer to stay and stating that her

5 employment would end that day.3 Id. ¶ 37. The Group also deposited $11,000 in compensation for Stankiewicz’s shares in her bank account, but she immediately returned the money. Id. ¶ 39. Convinced that the Group improperly prevented her

from exercising her right to dissent, Stankiewicz filed his lawsuit. II. Legal Standard Summary judgment is proper where “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P.

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