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Senior Judge Jerry M. Barr ruled in favor of QHG of Warsaw Inc., Kosciusko Community Hospital, concerning a lawsuit brought Aug. 4 against QHG by plaintiffs Michael J. Trobec, D.O., and Choice Surgical Center LLC.
The ruling was handed down Nov. 23 in Kosciusko Circuit Court.
Barr ruled Trobec breached his employment contract agreement with Kosciusko Community Hospital. Specifically, he breached the non-competition clause, by consulting with Choice Surgical Center LLC, the ruling states.
In a news release, Michael Mullins, CEO of KCH, said, "Judge Barr's verdict to enforce the non-compete provision is consistent with Kosciusko Community Hospital's original belief: We exercised our decision-making fairly and appropriately when ending our employment relationship with Dr. Michael Trobec as the result of his actions."
Judge Barr's judgment outlines a number of "conclusions Of law" in the case, including: "1) Indiana courts have long recognized that an employer of a physician has a legitimate protectable interest in the goodwill that a physician has built up with its patients; 2) The non-competition provision in the employment agreement between Trobec and KCH was reasonable in terms of the type of activity prohibited; and 3) Indiana public policy recognizes the freedom of parties to enter into contracts and the Indiana Supreme Court has recognized a very strong presumption of the enforceability of contracts that represent the freely bargained agreement of the parties."
In addition to the reasonability and enforceability of the employment agreement, the ruling stated Trobec understood the agreement he signed with KCH.
The ruling also cited instances when Trobec consulted with representatives of Choice and attended meetings with physicians interested in learning more about Choice.
The ruling addressed the issue of irreparable harm to the parties involved in the lawsuit and said, "Dr. Trobec and Choice have failed to prove by a preponderance of the evidence that the threatened injury to them outweighs the potential harm to the hospital resulting from the granting of an injunction."
Mullins said, "We are pleased to have the court's guidance and direction, delivering their conclusion on this matter. We believe the concerns we originally raised regarding Choice and their associated parties' professional conduct have not only been validated, but are greater now than when they first introduced the lawsuit. In the upcoming weeks, we will finalize what we believe to be the next appropriate course of action."
Tobias W. Buck, Warsaw, who is spearheading the Choice Surgical Center LLC project, was contacted today on behalf of Choice, but chose not to comment at this time.
