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An Allen Superior Court judge has granted a doctor’s motion for a preliminary injunction in a lawsuit involving a physician noncompete agreement, although the ruling declined to apply the state’s new statute barring physician noncompetes.
Judge Craig Bobay, in his order issued Friday, found Dr. David Lankford showed evidence of a likelihood of success on his breach of contract claims against his former employer, Lutheran Medical Group of Fort Wayne.
“From a practical viewpoint, the most medically vulnerable children of Allen County and northeast Indiana, as well as their families, will be served by Dr. Lankford returning to work immediately,” Bobay wrote. “There is substantial and urgent need for pediatric physicians to serve critically ill children in Allen County. Dr. Lankford is ready, willing, and able to provide this pediatric care, and Parkview RMC is ready, willing, and able to hire Dr. Lankford to perform this service.”
The court declined to apply the state’s new statute, but found that Lutheran’s physician noncompete agreement was unenforceable, overbroad and unreasonable.
A 2020 renewal agreement stated that the noncompete provision restricted Lankford from “”engag[ing] in the practice of medicine including surgery” within a 30-mile linear radius of Lutheran for one year.
“Lutheran attempts to bar Dr. Lankford from participating in the spectrum of medical practice during the one-year noncompete period. The Court concludes that the noncompetition provision’s restriction on activity is overbroad and unreasonable,” Bobay wrote.
Lankford’s attorney, Kathleen DeLaney with Indianapolis-based DeLaney & DeLaney LLC, said ther client was satisfied with the court’s decision.
“We are pleased with the court’s decision on Dr. Lankford’s request for a preliminary injunction, which will allow him to continue providing services in a community which sorely needs them. We intend to continue vigorously pursuing the case on behalf of an exemplary Indiana pediatrician and pediatric critical care specialist,” DeLaney said in a written statement.
Attorney Roger Kanne for Lutheran Medical Group did not immediately respond to a request for comment.
Lankford filed the lawsuit—David Lankford, D.C. v. Lutheran Medical Group LLC, 02002-2307-PL261—in July, claiming Lutheran Medical Group continued to interfere with his attempts to provide care to children at another health care system in Fort Wayne.
The lawsuit came right after Indiana’s new statute on physician noncompete agreement went into effect.
According to the complaint, Lankford terminated his employment agreement “for cause.” He had been hired in 2017 as a pediatric care intensivist.
In August 2022, Lutheran announced it would begin laying off its pediatric hospitalists and expected the pediatric intensivists to cover the work that would have been done by the pediatric hospitalists.
Lankford asked to renegotiate the employment agreement based on the additional duties, but Lutheran declined.
According to the complaint, Lankford wasn’t offered additional pay or support when his patient volume increased.
In January, after Lankford alleged Lutheran breached the employment agreement, which it denied, he terminated the agreement “for cause.”
In August, Bobay granted a temporary restraining order, which was to remain in effect until the court decided on the motion for preliminary injunction.
The preliminary injunction enjoins Lutheran Medical Group and its related entities and agents from enforcing or threatening to enforce Lankford the noncompete provision contained in either of the parties’ employment agreements.
“When a medical doctor is sidelined for months on end, this takes a toll on their skillset as a doctor, their reputation amongst the medical community, and their ability to obtain patients by referral,” Bobay wrote.
Lankford is able to work in his community without Lutheran contacting his new employer.
“I look forward to continuing my specialty work putting my education and skills to good use helping Allen County’s sick children,” Lankford said in a news release.
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Non-compete agreements for lawyers are unethical because they interfere with the attorney-client relationship. The same reasoning should apply to all doctors and their patients, not just those who can prove a much needed specialty.