Weber v. Tillman

913 P.2d 84, 259 Kan. 457, 11 I.E.R. Cas. (BNA) 837, 1996 Kan. LEXIS 36
CourtSupreme Court of Kansas
DecidedMarch 8, 1996
DocketNo. 73,202
StatusPublished
Cited by66 cases

This text of 913 P.2d 84 (Weber v. Tillman) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weber v. Tillman, 913 P.2d 84, 259 Kan. 457, 11 I.E.R. Cas. (BNA) 837, 1996 Kan. LEXIS 36 (kan 1996).

Opinion

The opinion of the court was delivered by

Lockett, j.:

Plaintiff employer and defendant employee, both dermatologists, entered into an employment contract which included a covenant not to compete should the employment cease for any reason. Employee appeals the trial court’s enforcement of the noncompetition covenant, claiming that the noncompetition covenant is unenforceable as violative of public policy and that the trial court erred in calculating the liquidated damages of the non-competition covenant. The appeal was transferred to this court pursuant to K.S.A. 20-3017.

Dr. Wallace M. Weber, a physician board certified in the field of dermatology doing business as Heartland Dermatology Center, has practiced in Hays, Great Bend, and Smith Center, Kansas since 1977. Prior to 1992, Dr. Weber was the only dermatologist practicing in northwest or north central Kansas. The next closest dermatologists were located in Salina and Hutchinson.

In 1991 Dr. Weber recruited Dr. Donald K. Tillman to join his practice. Dr. Tillman, a doctor of osteopathic medicine who is now board certified in the field of dermatology, was completing his pre-ceptorship (similar to a residency) in Florida. They entered into an employment contract on September 9, 1991, and Dr. Tillman began practicing with Dr. Weber in July 1992. The contract was prepared for Dr. Weber by a Pennsylvania company. Neither party participated in drafting the contract.

[459]*459The employment contract provided that the employment was “at will” and could be terminated by either Dr. Tillman or Dr. Weber upon 60 days’ written notice. The contract also included a noncompetition covenant. Although the employment contract is not included in the record on appeal, the noncompetition clause was detailed by the trial court in its journal entry:

“c. Paragraph No. 10. Restrictive Covenant: While you are an employee, and for a period of two (2) years after your employment ends (for any reason), you will not render any medical services on behalf of yourself or any business or entity engaged in providing professional dermatology services within a thirty (30) mile radius of any office or place of business of the practice at the time your employment ends. This promise includes your not practicing at any hospital within the area described.
“You agree that this restriction applies if your employment ends at any time and for any reason, until and unless a succeeding written agreement no longer contains this restriction. Alternatively, you may elect to practice medicine in the aforementioned area upon payment of an amount equal to six months salary and bonus.”

Dr. Weber’s practice is (and was when Dr. Tillman’s employment terminated) in Hays, Great Bend, and Smith Center, so the 30-mile radius referred to in the noncompetition covenant is 30 miles surrounding those cities. The covenant requires Dr. Tillman to refrain from practicing within that territory or, alternatively, he may practice in those areas upon payment to Dr. Weber of an amount equal to 6 months’ salary and bonus.

In his first year with Dr. Weber, Dr. Tillman earned $120,000 annually plus a bonus calculated every 6 months. The bonus was based on Dr. Tillman’s productivity and was determined according to a specified formula. For the first 6 months, Dr. Weber’s accountant calculated Dr. Tillman’s bonus to be $2,242.29. When Dr. Tillman disputed the calculation, Dr. Weber paid Dr. Tillman an additional $10,000, which the parties treated as a gift but which was shown as income for tax purposes. Dr. Tillman’s bonus the second 6-month period was approximately $20,000. His second year of employment, Dr. Tillman’s annual salary increased to $144,000 plus the bonus. For the third 6-month period Dr. Tillman received a bonus of $14,000.

[460]*460On January 2, 1994, Dr. Tillman informed Dr. Weber that he was terminating his employment. Dr. Tillman continued to work for Heartland Dermatology until March 18, 1994, by agreement with Dr. Weber. Dr. Tillman was aware that the restrictive covenant would be effective when he left the employment of Heartland Dermatology Center. Nevertheless, upon leaving Dr. Weber’s employment, Dr. Tillman immediately commenced to practice dermatology in Hays in violation of the restrictive covenant. Dr. Tillman did not pay liquidated damages under the alternative provision of the restrictive covenant.

Dr. Weber initiated this action to enjoin Dr. Tillman from practicing dermatology in the restricted areas or, alternatively, to require him to pay liquidated damages under the contract. Although there was testimony concerning Dr. Tillman’s reasons for leaving the practice, the trial court found that the reasons were irrelevant because the employment could be terminated by either party for any reason.

At trial, Dr. Weber’s accountant, using what the trial court found to be generally accepted accounting principles, determined the amount of 6 months’ salary and bonus to be $82,226.32. The accountant testified that this amount was calculated by adding Dr. Tillman’s bonuses, including the $10,000 paid when Dr. Tillman disputed the first 6-month bonus, over the 1 V2 years of employment to determine the 6-month average of the bonuses plus Dr. Tillman’s salary for the last 6 months of his employment ($144,000 annually).

Dr. Tillman’s position at trial and on appeal is that the restrictive covenant is unenforceable as against public policy. He argues that the covenant is unenforceable and against public policy because (1) it is difficult to recruit new doctors to rural areas, (2) the dermatology needs of patients in northwest Kansas would be under-served if only Dr. Weber were practicing in those areas, and (3) Dr. Weber would hold a monopoly if he were the only practicing dermatologist in those areas. Dr. Tillman presented the testimony of Beth Bowerman, the Director of Medical Recruitment of Hays Medical Center, concerning the difficulty of recruiting new doctors to rural areas. She testified that using the most conservative model [461]*461of evaluation, northwest Kansas needs three dermatologists and that the ability to serve those needs would be in jeopardy if Dr. Tillman were enjoined from practicing in Hays.

The trial court found that Bowerman’s testimony concerning the difficulty in recruiting new doctors to rural areas had no probative value in determining the effect of the restrictive covenant in the Dr. Weber-Dr. Tillman contract. The trial court concluded that the covenant not to compete was reasonable and enforceable and not against public policy. The court noted that the restrictive covenant is silent as to which 6-month period should be used to calculate the liquidated damages and as to the method of payment but found that a reasonable construction of the contract was a lump sum payment equal to the last 6 months of employment, plus all bonuses paid. The court granted a permanent injunction for a period of 2 years or, alternatively, ordered that Dr. Tillman pay Dr. Weber the sum of $82,226.32 within 10 days. Dr. Tillman timely appealed, and the appeal was transferred to this court on Dr. Tillman’s motion.

PUBLIC POLICY

The primary dispute in this appeal is whether the restrictive covenant is contrary to public policy and therefore unenforceable. The parties disagree as to this court’s standard of review. Dr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lawson v. Spirit Aerosystems
135 F.4th 1186 (Tenth Circuit, 2025)
Dartez v. Peters
97 F.4th 681 (Tenth Circuit, 2024)
Ashley Clinic v. Coates
545 P.3d 1020 (Court of Appeals of Kansas, 2024)
20231109_C361260_52_361260.Opn.Pdf
Michigan Court of Appeals, 2023
Doan Family Corp. v. Arnberger
522 P.3d 364 (Court of Appeals of Kansas, 2022)
Woodard v. Hendrix
Court of Appeals of Kansas, 2022
Moore v. Moore
Court of Appeals of Kansas, 2022
Allen, Gibbs & Houlik v. Ralston
Court of Appeals of Kansas, 2021
Dinger v. Wishkeno
N.D. Illinois, 2020
Matter of Marriage of Moler and Moler
444 P.3d 1017 (Court of Appeals of Kansas, 2019)
Savis, Inc. v. Cardenas
N.D. Illinois, 2018
In re Marriage of Johnston
Court of Appeals of Kansas, 2017
Retiree, Inc. v. Anspach
660 F. App'x 582 (Tenth Circuit, 2016)
Cordis Corp. v. Boston Scientific Corp.
868 F. Supp. 2d 342 (D. Delaware, 2012)
In Re the Estate of Oswald
244 P.3d 698 (Court of Appeals of Kansas, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
913 P.2d 84, 259 Kan. 457, 11 I.E.R. Cas. (BNA) 837, 1996 Kan. LEXIS 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weber-v-tillman-kan-1996.