Bassam Assaf v. Trinity Medical Cent
696 F.3d 681
7th Cir.2012Background
- Dr. Assaf was terminated as medical director; he sued in Illinois state court, later removed to federal court on diversity grounds.
- In February 2010, Assaf and Trinity drafted a settlement agreement providing $50,000 yearly salary 2009–2011 and continued employment through 2011 with automatic renewal unless 90-days notice.
- Trinity later refused to honor the agreement, creating a dispute about its validity and enforceability.
- Assaf moved for summary judgment to enforce the agreement; the district court granted enforcement but left damages for trial.
- During discovery, Assaf claimed lost professional fees as damages; Trinity moved to bar this evidence, and the district court barred it, ruling damages would be limited to salary, fees, and compensatory damages.
- The district court subsequently permitted reinstatement but then reversed on specific performance, concluding Illinois law barred reinstatement; the court then proceeded to judgment without a trial, which did not award lost professional fees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the district court should grant specific performance for reinstatement | Assaf seeks reinstatement through 2012 under the agreement. | Illinois law prevents specific performance of a personal services contract. | Remand; moot for past years, no specific performance required. |
| Whether Assaf may recover lost professional fees as damages | Lost professional fees from 2009–2011 were caused by Trinity's breach and are recoverable. | Damages evidence was improperly admitted or disclosed late in discovery. | Abuse of discretion; lost professional fees must be considered at trial. |
| Whether removal to federal court was proper | Diversity satisfied given Syrian plaintiff and Illinois defendant and amount in controversy. | Home-state defendant removal is inappropriate; but diversity existed. | Removal was improper but non-jurisdictional; court proceeds on merits. |
Key Cases Cited
- Hurley v. Motor Coach Indus., Inc., 222 F.3d 377 (7th Cir. 2000) (removal error non-jurisdictional; diversity jurisdiction governs)
- Samaan v. St. Joseph Hosp., 670 F.3d 21 (1st Cir. 2012) (discussion of removal and diversity standards)
- Erie R.R. v. Tompkins, 304 U.S. 64 (S. Ct. 1938) (settles use of state law for contract disputes in diversity cases)
- McBride v. Pennant Supply Corp., 623 N.E.2d 1047 (Ill. App. Ct. 1993) (Illinois rule preventing exploitation of own breach)
- Goldstein v. Lustig, 507 N.E.2d 164 (Ill. App. Ct. 1987) (Illinois breach rule limitations on self-benefit from breach)
- Kosuga v. Kelly, 257 F.2d 48 (7th Cir. 1958) (contract breach principles in Illinois context)
- Market Street Assocs. Ltd. P’ship v. Frey, 941 F.2d 588 (7th Cir. 1991) (breach damages and lost opportunities principles)
- Krolnik v. Prudential Insurance Co., 570 F.3d 841 (7th Cir. 2009) (late-disclosure of damages not automatic bar to evidence)
- Intec USA, LLC v. Engle, 467 F.3d 1038 (7th Cir. 2006) (diversity jurisdiction and related precepts)