Stewart Knoepp Md v. Iha Health Services Corporation Inc

CourtMichigan Court of Appeals
DecidedSeptember 14, 2023
Docket362282
StatusUnpublished

This text of Stewart Knoepp Md v. Iha Health Services Corporation Inc (Stewart Knoepp Md v. Iha Health Services Corporation Inc) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stewart Knoepp Md v. Iha Health Services Corporation Inc, (Mich. Ct. App. 2023).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

STEWART KNOEPP, MD, UNPUBLISHED September 14, 2023 Plaintiff-Appellant,

v No. 362282 Washtenaw Circuit Court IHA HEALTH SERVICES CORPORATION, INC., LC No. 18-001235-CK

Defendant-Appellee.

Before: LETICA, P.J., and MURRAY and PATEL, JJ.

PER CURIAM.

This appeal arises from defendant’s termination of plaintiff’s employment. Plaintiff, Dr. Stewart Knoepp, appeals as of right a judgment of no cause of action entered in favor of defendant, IHA Health Services Corporation, Inc. (IHA), after a jury trial. For the reasons provided below, we affirm.

I. BACKGROUND

Plaintiff, a pathologist, was hired to work at Michigan Multispecialty Physicians (MMP) in 2011. Defendant agreed to hire the physicians of MMP, resulting in MMP wrapping up its business and the physicians becoming employees of defendant in 2013. The employment agreement between plaintiff and defendant provides, in pertinent part:

7. Non-competition. The Practice and the Physician are entering into this Agreement, after considerable consideration, with the expectation that the relationship will be mutually successful and very long term. Both parties agree to act in good faith to preserve and maintain the relationship including the use of mediation and alternative dispute resolution approaches as needed. Except when the Physician’s employment is terminated by the Practice without cause and pursuant to Section 9(a)(i) of this Agreement, during the period ending one (1) year after the end of the Employment Term, the Physician shall not, directly or indirectly . . . establish, own, operate, or manage a practice or provide physician services within a ten mile radius of any of the clinical facilities of the Practice used as a primary practice site (Physician’s Office as set forth on Exhibit A or, if none,

-1- Reichert Health Building 5333 McAuley Drive, Ypsilanti, MI), unless the Physician changes his or her primary practice site) where the Physician worked while employed by the Practice. . . .

* * *

9. Termination of Employment. (a) This Agreement may be terminated:

(i) At any time, by either the Practice or Physician, for any reason, provided that the party terminating the Agreement must deliver written notice of termination to the other party at least one hundred twenty (120) days prior to the effective date of the termination.

(ii) By the Practice upon ten (10) days prior written notice to the Physician for the following reasons: (a) the material failure of the Physician, in the Practice’s reasonable judgment, to perform competently his or her duties under this Agreement; (b) conduct by the Physician which, in the Practice’s reasonable judgment, materially impairs the reputation or standing of the Practice; (c) the failure to maintain sufficient Continuing Education Credits as determined by the Michigan Board of Medicine; or (d) the material uncured breach by the Physician of any term, provision or condition of this Agreement; provided however, that the Practice may not terminate this Agreement for any of the preceding reasons if the Physician corrects the matter within such ten (10) days after receiving such written notice describing the particular matter.

(b) The termination of employment by the Practice for acts or activities of Physician specified in clauses (ii) through (x) above shall be deemed for all purposes to be a termination “for cause.” Any termination by the Practice under clauses (ii)-(ix) above shall require the affirmative vote of not less than a majority of the members of the Divisional or Department Team.

(c) In the event of any termination under this Section 9, the Physician shall continue to receive compensation under Section 4 of this Agreement through the effective date of such termination, provided that, if such termination is not immediately effective, the Physician continues to provide services as required under this Agreement through the effective date of such termination (if so required by the Practice).

Plaintiff was later assigned to be the medical director of the lab at St. Mary’s Hospital in Livonia. Plaintiff found the position challenging. In response to plaintiff’s concerns, Dr. Paul Valenstein, the then division chair of pathology at IHA, offered plaintiff an extra three to five vacation days because the director position at St. Mary’s lab seemed to be “more difficult than other jobs in our department.” Plaintiff chose three days as the amount of extra compensation.

-2- At some point later, the pathologists as a group decided to eliminate the extra compensation for the St. Mary’s role, but in order to alleviate some of that position’s work load, that director was no longer required to attend certain meetings. Plaintiff was not happy with the decision to eliminate his extra vacation days and continued to complain to other pathologists about this decision for many months afterward. Dr. Valenstein testified that he received complaints from colleagues that plaintiff had been raising this issue repeatedly. In an e-mail dated November 3, 2016, Dr. Valenstein informed plaintiff that he was at his “wit’s end” with plaintiff’s complaining about the issue and that plaintiff needed to accept the decision of the group and move on. Despite Dr. Valenstein’s suggestion to move on, plaintiff responded to the e-mail, raising the same issue.

Dr. Valenstein planned to retire on June 30, 2017. In anticipation of his retirement, Dr. Valenstein stepped down from his chair position, and Dr. Angela Bartley was selected to become the division chair. Plaintiff continued to complain “all the time” to other pathologists about how he “worked harder than everyone else.” This led to a February 24, 2017 meeting between Dr. Bartley, Dr. Valenstein, and plaintiff, in which Drs. Bartley and Valenstein informed plaintiff that his behavior was disruptive and needed to stop. When he was asked what he thought after hearing this, plaintiff said that their “conclusion is wrong.” Plaintiff maintained, “I’m allowed to speak. I’m an adult and I’m [a] 47 year-old man. I mean, I’m allowed to express my feelings and you have not . . . convinced me that I have handled myself in a manner that it’s [sic] anything other than the upmost in professionalism.” Dr. Bartley stressed that they did not need to convince plaintiff of anything—he just needed to stop expressing dissatisfaction to the group. When Dr. Bartley expressed that the reason for the meeting was that the group felt that plaintiff’s expression of his level of dissatisfaction had exceeded typical office banter, plaintiff replied, “I don’t accept that.”

Dr. Bartley and Dr. Valenstein both thought that the meeting did not go well, with plaintiff basically denying any responsibility for his behavior. The following day, Drs. Bartley and Valenstein sent plaintiff a letter summarizing the meeting—that plaintiff’s repeated complaints were disruptive and needed to stop. The letter warned that in the event

there is any future incident where you exhibit disruptive conduct, which includes, but is not limited to, loud outbursts or repeated discussions of dissatisfaction with work distribution, duties, or final group decisions, such conduct will be investigated and if substantiated will lead to disciplinary action up to and including termination of employment with IHA.

According to defendant, plaintiff continued to exhibit disruptive behavior, including at an April 2018 meeting. After this April meeting, Dr. Bartley recommended to the Chief Medical Officer at IHA, Dr. Mohammed Salameh, that plaintiff’s employment be terminated, and Dr. Salameh agreed. Dr.

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