Med + Plus Neck & Back Pain Center, S.C. v. Noffsinger

726 N.E.2d 687 (2000)

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Med + Plus Neck & Back Pain Center, S.C. v. Noffsinger

Illinois Appellate Court
726 N.E.2d 687 (2000)

Facts

Daniel Noffsinger (defendant) was employed as an associate chiropractor by Med + Plus Neck & Back Pain Center, S.C. (Med Plus) (plaintiff) pursuant to an employment contract dated February 23, 1995. The employment contract covered a two-year period and contained an early-termination provision with a liquidated-damages clause. Under that provision, Noffsinger was required to execute a promissory note in the amount of $50,000, and this amount was reduced by $2,083 every month for 24 months. If Noffsinger terminated the employment contract early, the remaining balance on the note became immediately due and payable as liquidated damages for purposes of recouping the costs of training a new associate chiropractor. Noffsinger resigned his employment approximately 10 months into the contract. Med Plus sued Noffsinger for breach of contract and sought lost profits and enforcement of the liquidated-damages provision. After a bench trial, the trial court determined that Noffsinger breached the employment contract but that Med Plus did not prove the existence of damages and the liquidated-damages provision was an unenforceable penalty.

Rule of Law

Issue

Holding and Reasoning (Inglis, J.)

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