Smith Elliott Smith & Garmey
Verdicts & Settlements
Following Early Defeat By Smith Elliott on Injunction Plea, Parkview Hospital Settles High-Profile Effort to Enforce Covenants Not to Compete Against Its Former Obstetricians
Three days before Christmas, Parkview Hospital filed Complaints in Portland, Maine in an effort to prevent two of its former obstetricians, Dr. Melissa Streeter and Dr. Gregory Gimbel, from practicing obstetrical medicine at MidCoast Hospital, Parkview’s direct competitor. In response, Smith Elliott entered the Court on behalf of the doctors and argued that the judicial system could not stop pregnant women – including those in their third trimester of pregnancy – from delivering babies with the doctors of their choice. The Court agreed with Smith Elliott.
Parkview filed Complaints against Drs. Streeter and Gimbel claiming that their move to MidCoast Hospital had severely damaged Parkview’s obstetrical practice, and was in breach of their contracts and covenants not to compete. Parkview asked the Court to immediately stop Streeter and Gimbel from continuing to practice at MidCoast, and requested substantial monetary damages.
Nicole Lorenzatti and Terry Garmey of Smith Elliott aggressively defended the interests of Streeter, Gimbel and their patients, and informed the Court that preventing Streeter and Gimbel from practicing at MidCoast would essentially remove them from the reach of patients in the community. Within five days of Parkview’s Complaint, the Court denied the Hospital’s request for an injunction, and ruled that Drs. Streeter and Gimbel could remain in practice at MidCoast.
Over the course of the next year, Parkview continued to pursue Drs. Streeter and Gimbel for monetary damages – ultimately claimed to reach more than two million dollars – based on allegations that hundreds of patients followed Streeter and Gimbel to MidCoast, severely damaging Parkview’s obstetrical practice and maternity ward. Lorenzatti and Garmey stood steadfast by Drs. Streeter and Gimbel, and exposed their clients’ position that hospital conditions and material breaches of their contracts by Parkview left them little choice but to leave. Within a few months of the lawsuit being filed, the Court dismissed Parkview’s claims against Dr. Gimbel. On the day before trial, Parkview settled all of its remaining claims.
Throughout the litigation, MidCoast Hospital stood by Dr. Streeter, Dr. Gimbel, and their defense team at Smith Elliott.
Nicole Lorenzatti is the Chair of the firm’s Employment and Labor Group. Terrence Garmey is a career civil litigation lawyer, well-versed in medical malpractice and related issues.