A physician is suing his former employer, alleging he was threatened with legal action for finding a new job after his previous employment was terminated prematurely in March.
Paul J. Pace, M.D., filed the complaint on July 9 in the U.S. District Court for the Southern District of Illinois against Granite City Clinic Corporation.
According to the complaint, Pace is a general surgeon who entered into an employment agreement with Granite City Clinic Corporation on Sept. 16, 2019. Pace agreed to render professional medical services exclusively for the defendant for 36 months. He claims he was a good and faithful employee and performed his job at an “exceptional level.”
Pace claims that on March 30, he received a letter from the defendant constituting a 90-day notice of termination ending his employment without cause. Pursuant to the letter, the contract was to terminate on June 28, the suit states.
After receiving the notice of termination from Granite City Clinic Corporation, Pace allegedly agreed to enter into an employment relationship with Touchette Regional Hospital. His employment is set to begin Aug. 1.
After he reached an employment agreement with Touchette, counsel for Granite City Clinic Corporation served Pace with a “Demand to Cease and Desist.” The letter alleges the agreement between the plaintiff and the defendant prohibits Pace from working at Touchette.
“In the demand letter, counsel for defendant states defendant ‘will pursue all rights and remedies it has at law or in equity’ to enforce the terms of the purported agreement against plaintiff and prevent him from working at Touchette,” the suit states.
“Plaintiff did not receive valuable and sufficient consideration under the laws of Illinois in exchange for signing the agreement,” it continues.
Pace claims Touchette is a “safety net hospital” and does not compete with Granite City Clinic Corporation.
Pace alleges the defendant’s letter threatened to take legal action against him if he did not comply with the terms of the agreement not to compete.
“By virtue of the foregoing, there is an actual controversy that entitles plaintiff to seek a binding declaration that his employment by Touchette does not violate any contract between plaintiff and defendant,” the suit states.
Pace seeks declaratory judgment that he did not receive valuable and sufficient consideration from the defendant, that the “nonsolicitation and noncompetition” provision of the agreement is not enforceable and “substantially broader than is necessary to protect any legitimate interest of of defendant,” and that the provision of the agreement is “unduly harsh and oppressive in curtailing the legitimate efforts of plaintiff to earn a livelihood.”
Pace is represented by William Lawson of Ogletree Deakins Nash Smoak & Stewart PC in St. Louis.