Peachtree Fayette Women’s Specialists, LLC (PFWS) is a medical practice owned by

Question

Peachtree Fayette Women’s Specialists, LLC (PFWS) is a medical practice owned by Dr. Cook. It specializes in obstetrics and gynecological services to patients out of two locations in Fayetteville, Georgia. PFWS hired Dr. Turner in 2006. The parties signed a noncompete contract that restricted Dr. Turner’s ability to provide obstetrical and gynecology medical services for or on behalf of any other person or entity within the “restricted territory” for two years after the termination of her employment with PFWS. The “restricted territory” was defined to mean a five-mile radius from PFWS’s office in Fayetteville, Piedmont Hospital in Fayetteville, and Piedmont Hospital in Atlanta (Piedmont Atlanta). The contract also recited that “[e]mployee acknowledges that she will provide services on behalf of Employer at each” of the loca- tions described as “restricted territories.” Dr. Turner’s employment with PFWS terminated in 2009. She contested the enforceability of the noncompete’s restriction of working at Piedmont Atlanta. She was never asked to work at Piedmont Atlanta and PFWS never maintained an office at Piedmont Atlanta dur- ing her employment. Turner and other PFWS doctors did have full active privileges at that hospital, but PFWS dropped its privileges there in 2008, indicat- ing that PFWS abandoned the prospect of practicing in Atlanta. Dr. Cook maintained that it was necessary to restrict Dr. Turner from practicing at Piedmont Atlanta because he had a number of referral sources there, to whom he had introduced Dr. Turner. Will the noncompete’s restriction against Dr. Turner prac- ticing at Piedmont Atlanta be upheld?

Explanation / Answer

It is observed that noncompete’s restriction is placed beyond the reasonable limits in order to protect the interest pertaining to PFWS's business. The clause resctricted the ability of turner to work even in an area where she was not treating her patients. More over PFWA has abandoned the regular practice of the Dr. Turner quite a long and a reasonable time even before the actual termination. As a result of which noncompete’s restriction against Dr. Turner prac- ticing at Piedmont Atlanta cannot be upheld.

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