Opinion ID: 1702659
Heading Depth: 1
Heading Rank: 14

Heading: Simultaneous Representation of Radiology Services and Rounsborg

Text: Radiology Services claims that Hall was aware of Rounsborg's intention to retire following the 90-day disability period and that she was negligent in failing to inform the corporation of this plan. It claims that had it known that Rounsborg would not return to work following the disability period, it would not have made disability payments. Radiology Services alleges that it incurred a loss because it paid Rounsborg more than $38,000 in disability payments. The record does not support these claims. The evidence establishes that Mazzuca, on behalf of Radiology Services, asked Hall to use her influence with Rounsborg to try to persuade him to get an alcohol assessment, which she did on December 1, 2003. At the meeting, Mazzuca said he felt the board would pay short-term disability to Rounsborg if he took the assessment and followed its recommendations. Rounsborg inquired about whether he could return to work if the assessment was favorable. He stated that if he were allowed to return to work, he would possibly want the option of working part time and without call obligations. Mazzuca consulted with Wu and advised Rounsborg that Radiology Services would consider allowing him to continue practicing under these conditions. After meeting with Rounsborg and Mazzuca, Hall drafted an agreement intended to be between Radiology Services and Rounsborg indicating that Rounsborg would take vacation from December 15, 2003, until March 15, 2004, and that following the completion of the vacation period, Rounsborg could elect to continue his employment with Radiology Services or retire with no further notice. The agreement disclosed that Hall was Rounsborg's daughter and had performed legal work for Radiology Services in the past. This agreement was never signed by either party. Rounsborg did not believe that he had any professional competency problems and continued to work his regularly scheduled hours and take previously scheduled vacations until December 15, 2003. At that time, he agreed to take a leave of absence. As it became clear that Radiology Services and Rounsborg would have conflicting positions, on December 10, Wu advised Hall that Radiology Services was terminating its relationship with Hall. Radiology Services held its annual meeting on January 15, 2004. Rounsborg, Wu, Hlavaty, Liu, Hatch, and Mazzuca were present. Rounsborg was removed as president of the corporation, Wu was elected as the new president, and Rounsborg's access to corporate documents and information was suspended. The board recognized the termination of Hall as its attorney. The board approved Rounsborg's placement on disability status with pay from December 15, 2003, through March 15, 2004. Rounsborg was requested to abide by the noncompete provisions in the ETAR. The minutes reflect that Rounsborg would be at a health center in Chicago, Illinois, in January 2004 for an assessment and that the future employment of Rounsborg depended on the report from the health center and was at the discretion of the officers. Rounsborg asked if the board would allow him to give less than 90 days' notice if he decided to retire. The minutes stated: [Rounsborg] said that March 15, 2004 would be the possible date to begin his retirement if he decides to retire. The board voted on waiving the 90 days' notice required by the bylaws, and the motion passed. The day after the meeting, on January 16, 2004, Rounsborg notified Wu and Radiology Services that he intended to retire effective March 16. There is no evidence that any of the board members were deceived by Rounsborg's ultimate decision to retire at the conclusion of his 90-day period of disability leave. Rounsborg's future employment was dependent on his assessment results and the vote of the corporation's officers. Radiology Services considered the possibility that Rounsborg might not come back to work when it asked him to take disability leave. There is no evidence that Hall made any representation to Radiology Services regarding Rounsborg's retirement, that she made any arrangement for him to retire without advising the board, or that he had made a decision to retire before the January 15, 2004, board meeting. Accordingly, there is no evidence supporting Radiology Services' claim that Hall was negligent regarding this issue or that any possible negligence was the proximate cause of Radiology Services' alleged loss. Radiology Services also argues that Hall assisted Rounsborg in competing against Radiology Services. This claim is also unfounded. The evidence is clear that after retiring from Radiology Services, Rounsborg never worked as a radiologist again for Great Plains Radiology or anyone else. There is no evidence that Rounsborg solicited business from Radiology Services' clients or that Radiology Services lost any business due to the actions of Rounsborg or Hall.