Vanessa Cameron, D.O. v. Teverbaugh Croland and Mueller OB/GYN Associates, S.C., Lori A. Teverbaugh, M.D., Joshua A. Croland, M.D., and John C. Mueller, M.D.

District Court, C.D. Illinois·Decided July 20, 2026·No. 1:24-cv-01432·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF ILLINOIS PEORIA DIVISION

VANESSA CAMERON, D.O., Plaintiff,

v. Case No. 1:24-cv-01432-JEH-RLH

TEVERBAUGH CROLAND AND MUELLER OB/GYN ASSOCIATES, S.C., LORI A. TEVERBAUGH, M.D., JOSHUA A. CROLAND, M.D., and JOHN C. MUELLER, M.D., Defendants.

Order Now before the Court are Plaintiff’s Motion for Partial Summary Judgment (D. 46) and Defendants’ Motion for Partial Summary Judgment (D. 47).1 For the reasons set forth infra, the Plaintiff’s Motion for Partial Summary Judgment is GRANTED IN PART AND DENIED IN PART and the Defendants’ Motion for Partial Summary Judgment is GRANTED IN PART AND DENIED IN PART. I On October 30, 2024, Plaintiff Vanessa Cameron, D.O., filed her Complaint (D. 1) against Defendants Teverbaugh, Croland, and Mueller OB/GYN Associates, S.C. (TCM), Lori Teverbaugh, M.D., Joshua A. Croland, M.D., and John C. Mueller, M.D., alleging they violated the Illinois Wage Payment and Collection Act (IWPCA), 820 Ill. Comp. Stat., 115/1 et seq. (Counts I through IV) and breached Dr. Cameron’s employment contract, including the implied covenant of good faith

1 Citations to the electronic docket are abbreviated as “D. ___ at ECF p. ___.” and fair dealing (Count V). Specifically, Dr. Cameron alleged the Defendants never paid any annual bonuses pursuant to the parties’ 2016 employment agreement (2016 Agreement), failed to increase Dr. Cameron’s base salary according to the schedule set forth in the 2016 Agreement, never paid Dr. Cameron any shareholder distributions or dividends, and unilaterally and wrongfully decreased Dr. Cameron’s salary by about 50 percent for several weeks in April and May 2020. Dr. Cameron requested compensatory damages, statutory damages, interest, and costs, including reasonable attorneys’ fees as well as specific performance.2 II The undisputed facts are as follows.3 Dr. Cameron is a board-certified physician who began her employment with Defendant TCM in 2013. Dr. Cameron signed the 2016 Agreement on or about January 1, 2016 which was set to expire December 31, 2020. Drs. Croland and Teverbaugh were aware of the obligations in the 2016 Agreement and negotiated its terms. The 2016 Agreement contained a section entitled “3.4 Compensation for Services of Physician.” Section 3.4 reads as follows: 3.4 Compensation for Services of Physician. Physician is an exempt employee for the purpose of the Fair Labor Standards Act. As Physician’s compensation for all duties and obligations set forth herein the Corporation shall pay to Physician a contract fee computed at the annual rate of $300,000.00, payable in accordance with the Corporation’s biweekly payroll process. Assuming Physician’s performance of services under this Agreement continues to be satisfactory to the Corporation, which the Corporation will review and determine on an annual basis, the Corporation will increase Physician’s annual salary by $52,000 on January 1, 2017, and thereafter $42,667 each year, until such time as Physician’s annual

2 The Plaintiff voluntarily withdrew her Count VI alleging a civil conspiracy. See Pl.’s Resp. to Mot. to Dismiss (D. 15 at ECF p. 1, fn. 1). 3 Taken from the parties’ respective Motions for Partial Summary Judgment. salary is at $480,000. Part of the Corporation’s annual review and determination of salary increase will be whether Physician’s performance is at a level that is expected of the Corporation’s existing shareholders.

In addition, the Corporation shall: * * * d. Physician shall be eligible for an annual bonus, the amount of which will be based on two calculations: i) a reconciliation of the Physician’s individual annual financial performance, as reasonably determined by the Corporation’s outside accountant; and ii) a reconciliation of the Corporation’s annual financial performance, as reasonably determined by the Corporation’s outside accountant, of which Physician shall be entitled to a 12.5% share. The bonus amount shall be paid out equally over a 24 month period.

e. Simultaneous with the execution of this Agreement, Physician is subscribing for 48 shares of the Corporation. Assuming Physician is still employed pursuant to this Agreement at the time, Physician shall be entitled to subscribe for an additional 48 shares as of January 1, 2017, January 1, 2018, January 1, 2019 and January 1, 2020, for a total of 240 shares of the Corporation.

Defs.’ Mot. Summ. J. Ex. 2 (D. 48-1 at ECF pp. 4-5). Dr. Cameron’s expert, Sarah McGuire, CPA, asserted that, based upon her calculations, Dr. Cameron was ultimately paid the following yearly salaries by TCM: $300,000 (2016); $354,476 (2017); $395,832 (2018); $415,128 (2019); and $174,906 (2020). Ms. McGuire asserted, based upon calculations which utilized Financial Summary Reports prepared by TCM, Dr. Cameron’s net receipts for the at-issue fiscal years were as follows: $455,524 (2016); $742,877 (2017); $761,886 (2018); $793,344 (2019); and $407,471 (2020). Determination of annual salary increases for Dr. Cameron under Section 3.4 of the 2016 Agreement was based, in part, upon whether Dr. Cameron’s performance was a level expected of TCM’s then-existing shareholders (Drs. Teverbaugh, Croland, and Mueller). Dr. Teverbaugh was, at times relevant to Dr. Cameron’s Complaint, a shareholder and the president of TCM. Dr. Croland was, at times relevant to Dr. Cameron’s Complaint, a shareholder of TCM. Between January 2016 and December 2020, Drs. Croland and Teverbaugh had the ability to direct and cause Defendant TCM to pay Dr. Cameron all earned wages, including her salary, annual bonuses, and compensation from any shares in TCM. When annual reviews of physicians were performed, it was typically Drs. Teverbaugh and Croland who participated in the meetings. Defendant TCM considered Dr. Cameron’s performance “satisfactory,” and her patients trusted her. No written performance reviews were provided. Drs. Croland and Teverbaugh were responsible for paying Dr. Cameron’s salary. TCM did not transfer any shares to Dr. Cameron. TCM did not pay Dr. Cameron any form of compensation for her shares. TCM and Drs. Croland and Teverbaugh made the decision to decrease Dr. Cameron’s bi-monthly salary of $16,153.85 to $8,076.93 for three pay periods and $12,115.38 for one pay period, resulting in a total underpayment of $28,269.23, without Dr. Cameron’s consent in April and May 2020. Dr. Cameron informed the Defendants she objected to their reduction of her salary in April and May 2020 and requested that TCM pay the salary the Defendants reduced. TCM made a partial payment of Dr. Cameron’s unpaid salary of $9,329.00 in August 2020 and paid the remainder of $18,940.23 in February 2021. The Defendants have not paid any statutory penalties to Dr. Cameron related to the Defendants’ reduction of her salary in 2020. Dr. Croland planned for Dr. Cameron to become a partner through “sweat equity.” TCM drafted a subscription agreement for Dr. Cameron to become a TCM shareholder. TCM drafted an amendment to the company’s stockholder agreement to add Dr. Cameron as a shareholder. On December 22, 2015, Tyler Petersen sent Janell Pettry, TCM’s Office Manager, an email containing a draft subscription agreement for Dr. Cameron to receive shares in TCM. Ms. Pettry does not recall providing the draft to Dr Cameron. TCM has no direct evidence or knowledge of any TCM agent providing any subscription agreement to Dr. Cameron between 2015 and December 2020. TCM knew the president of TCM needed to sign Dr. Cameron’s subscription agreement for it to be effective, and TCM knew that its president never signed any subscription agreement. Dr. Cameron testified in her deposition that she was never issued any shares in TCM. On April 13, 2020, Dr. Cameron provided 60-days’ written notice to Defendant TCM that she was resigning from her employment with TCM and that her last day of employment with TCM would be June 12, 2020.

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Vanessa Cameron, D.O. v. Teverbaugh Croland and Mueller OB/GYN Associates, S.C., Lori A. Teverbaugh, M.D., Joshua A. Croland, M.D., and John C. Mueller, M.D., (C.D. Ill. 2026).

Vanessa Cameron, D.O. v. Teverbaugh Croland and Mueller OB/GYN Associates, S.C., Lori A. Teverbaugh, M.D., Joshua A. Croland, M.D., and John C. Mueller, M.D. (Vanessa Cameron, D.O. v. Teverbaugh Croland and Mueller OB/GYN Associates, S.C., Lori A. Teverbaugh, M.D., Joshua A. Croland, M.D., and John C. Mueller, M.D.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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