Virendra S. Bisla, M.D., Ltd. v. Parvaiz

884 N.E.2d 790, 379 Ill. App. 3d 567, 27 I.E.R. Cas. (BNA) 1484, 318 Ill. Dec. 822, 2008 Ill. App. LEXIS 118
CourtAppellate Court of Illinois
DecidedFebruary 21, 2008
Docket1-07-1647
StatusPublished
Cited by9 cases

This text of 884 N.E.2d 790 (Virendra S. Bisla, M.D., Ltd. v. Parvaiz) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Virendra S. Bisla, M.D., Ltd. v. Parvaiz, 884 N.E.2d 790, 379 Ill. App. 3d 567, 27 I.E.R. Cas. (BNA) 1484, 318 Ill. Dec. 822, 2008 Ill. App. LEXIS 118 (Ill. Ct. App. 2008).

Opinion

JUSTICE CAMPBELL

delivered the opinion of the court:

This interlocutory appeal involves an employment dispute between physicians. In 1998, defendant, Akhtar Parvaiz, M.D. (Dr. Parvaiz), entered into a three-year employment agreement to work as a cardiologist in the medical offices of plaintiff, Virendra S. Bisla, M.D., Ltd. (Dr. Bisla or Bisla Corporation). The employment agreement contained a covenant of employment that prohibited Dr. Parvaiz from practicing medicine within a 10-mile radius of Bisla Corporation for 12 months after termination of the agreement. In 2006, Dr. Bisla filed a motion for preliminary injunction to enjoin Dr. Parvaiz from practicing medicine in the so-called “covenanted area,” and the circuit court of Cook County denied Bisla’s motion. On appeal, Dr. Bisla contends that the trial court erred in denying the preliminary injunction after finding the employment agreement void thereby rendering the noncompetition covenant unenforceable. For the following reasons, we affirm the judgment of the trial court.

BACKGROUND

A. Initial Interview

The following relevant facts were revealed in testimony during an evidentiary hearing on the motion for preliminary injunction.

Dr. Bisla operates an Illinois medial corporation under his own name with a principal medical clinic located at 9011 S. Commercial Avenue, Chicago, Illinois (Clinic). Dr. Parvaiz is a cardiologist who resides at 106 Kraml Drive, Burr Ridge, Illinois.

After completing his fellowship in 1998, Dr. Parvaiz sought to join a medical practice and learned that Dr. Bisla was seeking to hire a cardiologist. Dr. Parvaiz called Dr. Bisla to inquire about a position and Dr. Bisla requested a curriculum vitae (CV). After receiving Dr. Parvaiz’s CV Dr. Bisla contacted Dr. Parvaiz to request a meeting.

Dr. Bisla offered Dr. Parvaiz employment at their initial meeting. The offer of employment consisted of a base salary and, after three years of employment, assuming Dr. Parvaiz satisfied certain criteria, Dr. Bisla would offer Dr. Parvaiz a 50% equity interest in Bisla Corporation, as well as 100% of the net proceeds generated by Dr. Parvaiz in excess of $300,000. Dr. Parvaiz accepted the offer on the spot and Dr. Bisla asked Dr. Parvaiz to return in a week to sign a written contract.

B. Employment Agreement

On January 25, 1998, Dr. Parvaiz and Dr. Bisla met in the cafeteria at Trinity Hospital and Dr. Bisla presented Dr. Parvaiz with a written employment agreement postdated February 1, 1998 (Employment Agreement). Dr. Parvaiz reviewed the Employment Agreement to ensure it provided the agreed-upon terms regarding the offer of equal partnership, the pay structure, malpractice insurance, an annual leave and family health care coverage. Upon his review, Dr. Parvaiz noticed that the Employment Agreement did not include the term whereby he would receive 100% of the net proceeds generated by his work in excess of $300,000. Dr. Parvaiz brought the omission of the net proceeds term to Dr. Bisla’s attention and Dr. Bisla hand-wrote the words “More than 300,000 Net —> 100% To Dr. Parvaiz” on the bottom of the first page of the Employment Agreement. Once corrected, Dr. Parvaiz signed the agreement.

Section B of the Employment Agreement provided that Dr. Bisla would carry malpractice insurance for Dr. Parvaiz in Indiana and medical coverage for Dr. Parvaiz and his family and offered Dr. Parvaiz the option to acquire a 50% equity interest in Bisla Corporation after three years of employment.

Section 15 of the Employment Agreement, entitled “Equity Interest,” provided as follows:

“Equity Interest. In the event Employee completes three (3) fall years of employment with Corporation and satisfies each of the following conditions, Employee shall be offered the option to acquire an equity interest in Corporation equal to the equity interest of each other stockholder of Corporation. The determination as to whether Employee has satisfied Subsection (b) shall be solely determined by Corporation.
(a) Employee shall not have given or received notice of termination of his employment at or prior to the date of closing of the purchase of stock by Employee.
(b) Employee shall have demonstrated:
(1) continuous compatibility with other physician employees and professional staff of Corporation;
(2) acceptance by patients; and
(3) above-average professional performance.
(c) A final purchase agreement shall be entered into by the parties setting forth the purchase price and terms and conditions for the acquisition of such equity interest.”

Section 15 further provided that after three years of employment, Dr. Parvaiz would be offered the option to acquire an equal ownership interest in the Bisla Corporation.

C. Breach of Employment Agreement

On January 31, 2001, Dr. Parvaiz completed three years’ employment with Bisla Corporation, fulfilling the objective and subjective criteria of section 15. Dr. Bisla, however, failed to offer Dr. Parvaiz the option to acquire a 50% equity interest as agreed. Dr. Parvaiz and his wife met with Dr. Bisla at the Hyatt Regency Oak Brook in late 2001, where Dr. Bisla presented documents to Dr. Parvaiz offering the option to acquire a 45% equity interest in Bisla Corporation, spread over a five-year period. Dr. Bisla brought along a document entitled “Agreement For Purchase of Capital Stock of Virenda S. Bisla, M.D., Ltd.,” for Dr. Parvaiz to sign. Dr. Bisla also presented to Dr. Parvaiz an “Amended and Restated Employment Agreement,” which he intended to supersede the prior Employment Agreement, and instructed Dr. Parvaiz that it was “in his best interest” to sign both agreements.

Dr. Parvaiz refused to sign the new agreements since they did not comply with section 15 of the Employment Agreement.

Dr. Bisla also failed to provide Dr. Parvaiz and his family with medical insurance until 2003, five years after execution of the Employment Agreement. Dr. Bisla also failed to provide Dr. Parvaiz with malpractice coverage in Indiana as agreed.

D. Change in Relationship

After refusing to sign the revised 45% ownership agreement, Dr. Parvaiz believed that he was working for Dr. Bisla under an oral agreement, rather than toward partnership, since the Employment Agreement did not contemplate any salary provision after January 31, 2001. As such, Dr. Parvaiz began to seek other employment. In 2005, Dr. Parvaiz received an offer from Elgin Cardiology at a salary of $300,000. Dr. Parvaiz advised Dr. Bisla of his offer and Dr. Bisla orally agreed to match the offer and increased Dr. Parvaiz’s salary to $300,000.

E. Bisla Corporation Dissolved

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Bluebook (online)
884 N.E.2d 790, 379 Ill. App. 3d 567, 27 I.E.R. Cas. (BNA) 1484, 318 Ill. Dec. 822, 2008 Ill. App. LEXIS 118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/virendra-s-bisla-md-ltd-v-parvaiz-illappct-2008.