Duffner v. Alberty

Drs. Joe Alberty and John Wideman (plaintiffs) (together, Alberty) were orthopedic surgeons who had practiced together for many years. In June 1984, Dr. David Duffner (defendant), who was a trained orthopedic surgeon, sought to practice in association with Alberty. The parties reached an agreement regarding the sharing of medical equipment and payment of expenses. Each doctor had his own private office and generated income based on his services rendered. Duffner agreed to pay a share of rent and other practice expenses. Duffner also agreed to a covenant not to compete: he promised that if he terminated his association with Alberty, Duffner would not practice medicine within a 30-mile radius of Alberty’s office for a period of one year after termination. While associated with Alberty, Duffner treated 1,207 patients and had access to the practice’s confidential patient records for treatment purposes. In nine months, Duffner personally generated revenues in excess of $300,000. In late spring of 1985, Duffner decided to join another orthopedic clinic located in the same building as Alberty. Subsequently, Duffner requested from Alberty the files for 28 patients for the sole purpose of providing follow-up care and not to recruit the patients away from Alberty. Alberty sued Duffner, seeking to enforce the covenant not to compete. The trial court ruled in Alberty’s favor, finding that the covenant was reasonable and necessary to protect Alberty’s medical practice. Duffner appealed, arguing that the covenant was unenforceable on public-policy grounds.