Judge grants restraining order in noncompete lawsuit
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A temporary restraining order has been granted in one of the first lawsuits following Indiana’s new statute on physician noncompete agreements.
Dr. David Lankford, an Allen County pediatric intensivist, filed the lawsuit against his former employer, Fort Wayne-based Lutheran Medical Group, to stop it from enforcing a noncompete clause after he terminated his employment agreement “for cause.”
An evidentiary hearing was held Aug. 11 in the case, where both parties had filed prehearing briefs on the request for a preliminary injunction. Lankford had also moved for a TRO until the judge issued his ruling on the preliminary injunction.
Lankford alleges that Lutheran Medical Group continues to interfere with his attempts to provide care to children at another health care system in Fort Wayne.
On Tuesday, Allen Superior Judge Craig Bobay granted the temporary restraining order and stated it will remain in effect until the court rules on the motion for preliminary injunction.
The temporary restraining order prohibits Lutheran Medical Group and any of its subsidiaries, agents, servants, employees, consultants, attorneys, affiliates, and any other individuals or entities’ actions in concert with them from enforcing or threatening to enforce Lankford with the noncompete clause.
“I look forward to returning to work and putting my education and skills to good use helping Allen County’s sick children,” Lankford said in a news release.
According to the complaint, Lankford was 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 doing so, he terminated the agreement “for cause.”
The state’s statute went into effect July 1 and states that when a physician terminates employment for cause, the noncompete agreement is unenforceable.
Kathleen DeLaney of DeLaney & DeLaney LLC, who is the lead attorney representing Lankford, said this is just a start.
“We are pleased with the Court’s decision on Dr. Lankford’s request for a temporary restraining order, which will allow him to get back to work immediately, providing services in a community which sorely needs them. We intend to continue vigorously pursuing the case and look forward to continuing to represent an exemplary Indiana pediatrician and pediatric critical care specialist,” DeLaney said in a news release.
Indiana Lawyer reached out to Lutheran Medical Group’s lead attorney, Roger Kanne, for comment.