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Kansas Court of Appeals enforces covenant not to compete against physician

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After 13 years of practice with Wichita Clinic, Dr. Michelle Louis resigned and went into practice with a family physician group. Her employment agreement with Wichita Clinic contained a restrictive covenant that prevented her from practicing medicine in Sedgwick County for a period of three years after she left Wichita Clinic.

The contract also had a liquidated damages provision requiring her to pay 25% of her earnings during the three-year restricted period if she did practice in the county.

On June 13, 2008, the Kansas Court of Appeals reversed the decision of the trial court in Wichita Clinic v. Louis and held that the three year restrictive covenant was enforceable and that the clinic could collect the 25% of earnings as liquidated damages.

Louis had argued that the restrictive covenant should not be enforced because the clinic had breached the compensation provision in the contract by unilaterally modifying...(register to read more)

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