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DeVos v. Cunningham Group

Alabama Supreme Court
297 So. 3d 1176 (2019)


Facts

Doctors William DeVos and Donald Simmons (defendants) worked for Cunningham Group (plaintiff) providing pathology services for Brookwood Medical Center. The doctors’ employment agreements prohibited soliciting Cunningham clients for two years after termination, and said the doctors would forfeit a year’s salary if they gave less than 12 months’ notice of termination. After 11 years, both doctors terminated their employment without notice. Cunningham sued, alleging the doctors were soliciting Brookwood’s business. The court entered a preliminary injunction enforcing the noncompete and nonsolicitation clauses without addressing enforceability and required Cunningham to post a $25,000 bond. The doctors moved to increase the bond on the ground that together they were losing close to $300,000 a month based on what they previously earned providing pathology for Brookwood, and appealed. The trial court refused to increase the bond, reasoning it did not have jurisdiction once a notice of appeal was filed.

Rule of Law

Issue

Holding and Reasoning (Stewart, J.)

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