Care Group Heart Hospital, LLC v. Sawyer

The hospital that paid out a doctor’s ownership interest after his employment as a cardiologist terminated did not breach its agreement with the doctor.Dr. Roderick Sawyer worked as a cardiologist for St. Vincent Medical Group, Inc. (the Medical Group) and was a member-owner of The Care Group Heart Hospital, LLC (the Hospital). Sawyer agreed with the Medical Group and the Hospital that upon “any termination” of employment between him and the Medical Group, his ownership interest in the Hospital must be discontinued and redeemed. After the Medical Group terminated Sawyer’s employment, the Hospital paid out Sawyer’s ownership interest. Sawyer sued the Hospital, among others, alleging breach of contract. The jury returned a verdict against the Hospital for breach of contract. The Supreme Court reversed, holding (1) under the plain meaning of the contract language, the Hospital did not breach the agreement by discontinuing and redeeming Sawyer’s ownership interest; but (2) the Hospital did breach the agreement by delaying the payout, so Sawyer was entitled to interest on the delay. View "Care Group Heart Hospital, LLC v. Sawyer" on Justia Law