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We represented a medical doctor who had just after medical school agreed to be employed at a certain medical practice. And as part of her employment agreement, she would be granted a membership interest, an ownership interest in the practice itself after a certain number of years. Right before that period of time lapsed, the controlling members of that business sort of froze her out and let her know that they weren’t, in fact, going to make her part of that business and honor the terms of the contract.
At the same time, they turned around and filed a lawsuit against her for allegedly breaching her covenant not to compete that was also part of the employment agreement. We were asserting claims; they were asserting claims against us. The entire thing went to trial and we prevailed on all the claims, recovering substantial damages award and also a judgement that she did not breach the covenant not to compete because they had, in fact, breached the employment agreement first.
So that was a complicated trial as well, we hired an expert to value the particular business interest that she was supposes to receive. Ultimately, like I said, we did prevail and our client was, again, very happy with the result.
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Chicago, IL commercial litigation attorney Patrick D. Austermuehle talks about a memorable case involving a doctor who cheated out of ownership interest in medical practice. He explains that a medical doctor, shortly after completing medical school, had agreed to be employed at a certain medical practice. As part of his employment agreement, he was supposed to be granted a membership interest—an ownership interest—in the practice after a specified number of years.
However, just before that period elapsed, the controlling members of the business froze him out and informed him that they would not honor the terms of the contract or make him a part of the business. At the same time, they filed a lawsuit against him, alleging that he had breached his covenant not to compete, which was also part of the employment agreement.
Both parties asserted claims, and the case proceeded to trial. In the end, the court ruled in his favor on all claims, awarding substantial damages and issuing a judgment that he had not breached the covenant not to compete, as the employer had, in fact, breached the employment agreement first.
It was a complex trial that involved hiring an expert to evaluate the business interest he was supposed to receive. Ultimately, the case was won, and he was very satisfied with the outcome.