Enforcement of Restrictive Covenant

Gerald Haberkorn and Kevin J. Clancy successfully represented the owner of a fast-food restaurant franchise in an action seeking to enforce a restrictive covenant and enjoin the opening of another franchise within a restricted area. The client had purchased its franchise as well as a license to use certain trademarks from the defendants two years ago. The purchase agreement and the license agreement prohibited the defendants from opening another franchise within a 1.9 mile radius of the client's store, or from licensing the same trademarks to any business within that area. Upon learning that the defendants intended to open a competing restaurant within only 1.2 miles, Lowis & Gellen filed a motion for a temporary restraining order and preliminary injunction to prevent the opening. Mr. Haberkorn and Mr. Clancy not only obtained the requested injunction in favor of their client, but also secured an order requiring the defendants to pay 100% of their client's attorneys fees incurred in obtaining that injunction

Las Vegas Multi-Specialty Physician Orgaization

Jerry Clousson and his team have just organized a multi-specialty physician orgaization in Las Vegas which is unique in offering a panel of board certified or board eligible physicians only to payors. The physician members also will be offering disease management programs designed to reduce cost of medical care.

Also, Mr. Clousson's team closed on the sale of Woodland SurgiCenter and accompanying real estate to St. Anthony Hospital in Michigan City for $4,000,000.

Appellate Victory

Lowis & Gellen's Appellate Practice Group won for a third time in December, this time for a physician involved in a contract dispute. The physician had entered into a professional services agreement with a corporation (which was not a licensed hospital), to provide medical services in an area surrounding the corporation. After approximately one year, the physician ended the relationship, and the corporation sued to recover over $100,000.00 it had paid the physician. The trial court dismissed the claim on the basis that the professional services agreement between the physician and corporation was really an employment agreement that violated the corporate practice of medicine doctrine and was therefore illegal. The corporate practice of medicine doctrine prohibits employment agreements between physicians and corporations that are not licensed hospitals. The corporation appealed, claiming the professional services agreement was not an employment agreement, but rather a loan agreement, and therefore not subject to the corporate practice of medicine doctrine. The Second District Appellate Court rejected the corporation’s argument and affirmed the trial court's decision. Like Lowis & Gellen’s other appellate victories this month, the court did not take oral argument on the matter, which meant the case was won on the strength of the brief. The trial attorney was Jerry P. Clousson and the appellate attorney was Patrick R. Moran.