Taimoorazy v. Bloomington Anesthesiology Service, Ltd.

122 F. Supp. 2d 967, 2000 U.S. Dist. LEXIS 17251, 2000 WL 1769051
CourtDistrict Court, C.D. Illinois
DecidedNovember 28, 2000
Docket99-1200
StatusPublished
Cited by7 cases

This text of 122 F. Supp. 2d 967 (Taimoorazy v. Bloomington Anesthesiology Service, Ltd.) is published on Counsel Stack Legal Research, covering District Court, C.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taimoorazy v. Bloomington Anesthesiology Service, Ltd., 122 F. Supp. 2d 967, 2000 U.S. Dist. LEXIS 17251, 2000 WL 1769051 (C.D. Ill. 2000).

Opinion

ORDER

MIHM, District Judge.

This matter is now before the Court on motions for summary judgment by both Plaintiffs and Defendants. For the reasons set forth below, Plaintiffs’ Motion for Summary Judgment on Counts I and II of Defendants’ Counterclaims [# 47] is GRANTED, and Defendants’ Motion for Summary Judgment [# 67] is GRANTED IN PART and DENIED IN PART.

JURISDICTION

In Counts I and II of the Complaint, Plaintiffs claim that they were discriminated against on the basis of their national origin in violation of Title VII, 42 U.S.C. § 2000e, et seq. Thus, this action invokes the federal question jurisdiction of the Court pursuant to 28 U.S.C. § 1331.

*970 BACKGROUND

In early 1994, Defendants, Drs. Stanley Aung (“Aung”), Fang Tse Lu (“Lu”), Peggy Mulcahy (“Mulcahy”), Witold Rybicki (“Rybicki”), and Renyan Wang (“Wang”) (hereinafter referred to collectively as the “Defendant Doctors”), provided nonexclusive anesthesiology services at St. Joseph Medical Center (“St. Joseph”) in Bloom-ington, Illinois. In May 1994, they wrote to a top administrator at St. Joseph proposing that they incorporate and enter into a contract that would allow them the exclusive right to provide these services. Thereafter, the Defendant Doctors formed the Illinois corporation of Bloomington Anesthesiology Service, Ltd. On July 14, 1994, each of them were issued 20 shares of stock in the corporation. They took action to elect officers; Wang was elected president. Although Plaintiffs do not dispute that Bloomington Anesthesiology was formed as a corporation, they further allege that Drs. Aung, Lu, Mulcahy, Rybicki, and Wang also formed a partnership at this time and interacted with each other as partners.

Each of the Defendant Doctors entered into an Employment Agreement with Bloomington Anesthesiology to provide professional services on behalf of the corporation. Bloomington Anesthesiology subsequently entered into a contract with OSF Healthcare System, the operator of St. Joseph, to provide exclusive anesthesia services to the hospital from September 1994 through February 1998.

In September 1994, the Defendant Doctors held a meeting at which the possibility of extending an offer of employment to Plaintiff Taimoorazy (“Taimoorazy”) was discussed. An Employment Agreement was prepared and presented to Taimoora-zy by Wang and was ultimately executed. Taimoorazy contends that Wang made representations that he would become part of the “partnership” after two years of employment, and further asserts that after the expiration of two years, he was congratulated by Wang, Mulcahy, Aung, and Rybicki and told he was then a partner. He then began receiving draws of $20,000.00 per month, just as the Defendant Doctors did, his vacation was increased to the same level of six weeks per year, and his salary was increased to $240,000.00 per year, which is the same salary that the Defendant Doctors were making.

On or about July 1, 1996, Plaintiff Ben-yamin (“Benyamin”) also executed an Employment Agreement with Bloomington Anesthesiology.

The contract between Bloomington Anesthesiology and OSF/St. Joseph provided that Bloomington Anesthesiology would designate an acceptable physician to serve as the Medical Director of Anesthesia at St. Joseph. On July 1, 1997, Taimoorazy was designated to succeed Mulcahy in this position. As Medical Director, he was responsible for overseeing the quality of patient care provided by anesthesiologists at St. Joseph and reporting matters relating to the quality of patient care.

In November 1997, Taimoorazy attended a meeting with Bloomington Anesthesiology’s accountant, who informed him that he was not a partner. When Taimoorazy questioned this, he was told to call the corporation’s attorney, Clay Cox (“Cox”). In a telephone conversation, Cox confirmed his understanding that Taimoorazy was not a partner. After receiving this information, Taimoorazy and Benyamin had a meeting with Wang and Aung, during which they confirmed that Taimoorazy was a partner and that they would resolve the confusion regarding his partnership within two weeks. When questioned by Benyamin after the two weeks had passed, Wang purportedly stated, “I think we have done everything we were supposed to do according to the contract and we are just going to stick with the contract.” (Benya-min Dep. at 116-17.)

On December 20, 1997, Taimoorazy’s attorney sent a letter to Wang requesting to review records regarding Taimoorazy’s *971 ownership interest in Bloomington Anesthesiology. Cox responded on behalf of Bloomington Anesthesiology, stating that the board had not yet determined whether they would extend Taimoorazy an offer to purchase an interest in the corporation.

On February 2, 1998, Taimoorazy and Benyamin received letters indicating that their employment by Bloomington Anesthesiology was terminated immediately pursuant to Section 10.1 of their Employment Agreements. The letters went on to state that each would be subject to a restrictive covenant which prohibited them from practicing medicine in either McLean or Livingston County, Illinois, for two years following the termination, as provided in Article 20 of the Employment Agreement.

On May 8, 1998, Taimoorazy and Benya-min incorporated Anesthesiology Consultants, Ltd.; each was issued 1,000 shares of stock in the corporation. Shortly thereafter, their applications for privileges at BroMenn Hospital in Bloomington were approved, and they began working at Bro-Menn on May 18,1998.

On June 25, 1999, Plaintiffs commenced this action. In Counts I and II of the Complaint, Taimoorazy and Benyamin, respectively, allege employment discrimination on the basis of national origin in violation of Title VII. Count III asserts a claim on behalf of Taimoorazy for wrongful expulsion/breach of fiduciary duty under the Illinois Uniform Partnership Act. In Count IV, Taimoorazy alleges a state law claim for breach of contract, while Benyamin alleges the same claim in Count V. Count VI is a state law claim by Taimoorazy for retaliatory discharge, and Count VII is a state law claim by both Plaintiffs for intentional interference with prospective contractual relations. Defendants then filed a Counterclaim, in which Count I alleges a violation of a non-competition restriction by Taimoorazy and Count II alleges a similar violation by Benyamin.

Both Plaintiffs and Defendants have now filed Motions for Summary Judgment which are fully briefed and ready for resolution. Defendants seek judgment as a matter of law on Counts III, IV, VI and VII of the Complaint, while Plaintiffs seek summary judgment on Counts I and II of the Counterclaim. This Order follows.

LEGAL STANDARD

Summary judgment should be granted where “the pleadings, depositions, answers to interrogatories and admissions on file, together with the affidavits, if any, show there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c).

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Bluebook (online)
122 F. Supp. 2d 967, 2000 U.S. Dist. LEXIS 17251, 2000 WL 1769051, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taimoorazy-v-bloomington-anesthesiology-service-ltd-ilcd-2000.