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Bruce D. Graham, M.D., P.A. v. Cirocco, 31 Kan.App.2d 563, 69 P.3d 194

Facts

Bruce Graham, a colorectal surgeon, recruited William Cirocco to join his practice in Kansas City in 1994 due to an increased workload. They entered into an employment contract that included a noncompetition agreement, which prohibited Cirocco from soliciting Graham's patients and opening an office within 25 miles of certain hospitals for two years after leaving the practice. After resigning, Cirocco opened a new office within the restricted area and began soliciting patients, prompting Graham to seek an injunction.

Bruce Graham, a colorectal surgeon, recruited William Cirocco to join his practice in Kansas City in 1994 due to an increased workload.

Issue

The main legal issues were whether the noncompetition covenant was enforceable and whether its restrictions were reasonable under the circumstances.

The main legal issues were whether the noncompetition covenant was enforceable and whether its restrictions were reasonable under the circumstances.

Rule

A noncompetition covenant is valid if it protects a legitimate business interest, does not create an undue burden on the employee, is not injurious to public welfare, and has reasonable time and territorial limitations.

A noncompetition covenant is valid if it protects a legitimate business interest, does not create an undue burden on the employee, is not injurious to public welfare, and has reasonable time and territorial limitations.

Analysis

The court found that the noncompetition covenant protected Graham's legitimate business interests in patient and referral contacts. It determined that the 150-mile restriction on solicitation was reasonable, as it did not completely ban Cirocco from treating patients. However, the 25-mile limitation on office placement was deemed overbroad and injurious to public welfare, as it effectively monopolized the market for colorectal surgery in the Kansas City area.

The court found that the noncompetition covenant protected Graham's legitimate business interests in patient and referral contacts.

Conclusion

The court affirmed the enforcement of the 150-mile solicitation restriction but reversed the 25-mile office placement limitation, modifying the noncompetition covenant accordingly.

The court affirmed the enforcement of the 150-mile solicitation restriction but reversed the 25-mile office placement limitation, modifying the noncompetition covenant accordingly.

Who won?

Bruce D. Graham prevailed in part, as the court upheld the 150-mile restriction on solicitation, recognizing his legitimate business interests. However, he did not prevail regarding the 25-mile limitation, which was found to be unreasonable.

Bruce D. Graham prevailed in part, as the court upheld the 150-mile restriction on solicitation, recognizing his legitimate business interests.

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