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Noncompetition Agreements: Lexington Clinic sues former director

Out of Kentucky comes another non-compete agreement case out of the medical field,Lexington Clinic sues former director:

"The clinic sued Dr. Michael McKinney, a physician and onetime board member, alleging that while he was a director, McKinney secretly worked to establish a new medical practice in Jessamine County that would compete with Lexington Clinic."

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Among other things, the suit alleges McKinney entered into a contract to work for a competing medical facility; worked to have other former clinic physicians join him in practicing medicine in competition with the clinic; and recruited or encouraged other clinic employees to leave the clinic and join a competing facility.

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The suit also says that as a director, McKinney received or had access to the clinic's confidential, proprietary business and financial information and materials, which he has not returned.

The lawsuit alleges that McKinney breached his fiduciary duties as Lexington Clinic director by facilitating the establishment of a competing operation, and is in a position to "misappropriate" clinic trade secrets to the detriment of the clinic.

I have to say I find the breach of fiduciary duties more interesting than the non-compete agreement. This reports does good duty serving as a reminder that the facts determine the type of claim and that facts are shifty things.

Full post as published by Indiana Civil & Business Lawyer on March 25, 2008 (boomark / email).