Michigan Court Determines Anesthesia Non-Compete Unenforceable
American Anesthesiology has a geographic non-compete in their contracts prohibiting providers from working at any other practices in that area. This was challenged by an anesthesia provider in Michigan resulting in a ruling stating such a contract is unenforceable for operating room based anesthesia providers.
This case below represents American Anesthesiology of Michigan threatening arbitration and litigation to a provider who found a job in the same city. Within 1 month of the provider leaving, the court was able to deny American Anesthesiology's request for injunction.
Here is the conclusion:
This motion presents a close question because there does not appear to be any question offact that Dr. Nallamothu is breaching his agreements with AAM. However, a showing ofirreparable harm is critical for obtaining injunctive relief. Michigan AFSCME Council 25 vWoodhaven-Brownstown School District, 293 Mich App 143, 149; 809 NW2d 444 (2011).Because AAM has not established that it will be irreparably harmed by Dr. Nallamothu workingfor LLAC, the Court is constrained to deny AAM's request for injunctive relief. However,because further factual development may provide support for the irreparable harm element, suchas evidence that Dr. Nallamothu or LLAC are soliciting AAM's patients or business, the Courtdenies the motion without prejudice. AAM may renew its request if discovery yields support forits position that it is or will suffer irreparable harm.
American Anesth vs MDA.pdf