Krajacich v. Great Falls Clinic, LLP
2012 MT 82
| Mont. | 2012Background
- The Great Falls Clinic, LLP is a Montana general professional partnership of medical professionals; Appellants are three licensed clinical psychologists who were former partners.
- In August 2004, the partners signed a Restated Partnership Agreement governing, among other things, separation payments and post-separation forfeitures.
- Article 6.2(b) provides that within three years after separation, if a partner engages in the practice of medicine in the primary county or contiguous counties, the partner forfeits all interest in certain accounts and receives no payment.
- The psychologists separated in August 2010 and sued for full partnership interest; the Clinic moved for summary judgment asserting Article 6.2(b) applies to the psychologists.
- The District Court granted summary judgment for the Clinic, holding the term "practice of medicine" includes the practice of psychology under ordinary contract interpretation; the psychologists appealed.
- The Montana Supreme Court affirmed, holding the contract language unambiguous and covering psychologists under Article 6.2(b).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the district court err in ruling that 'practice of medicine' includes psychology? | Krajacich et al. argued the term excludes psychology; it is a medical term. | Clinic argued the term is broad and not limited to physicians; psychology falls within ordinary meaning. | No error; term unambiguous and includes psychology. |
| Were there genuine issues of material fact about the parties' intent regarding 'practice of medicine' that required trial? | Affidavits suggested differing views on whether psychologists practiced medicine. | Interpretation is governed by the contract language, which is not ambiguous. | No genuine material facts; contract interpretation is a question of law. |
Key Cases Cited
- Corporate Air v. Edwards Jet Ctr., Mont., Inc., 345 Mont. 336 (Mont. 2008) (contract interpretation; strict reading of writing)
- Rumph v. Dale Edwards, Inc., 600 P.2d 163 (Mont. 1979) (interpretation of contract terms; whole instrument)
- Dollar Plus Stores, Inc. v. R-Montana Assocs., L.P., 350 Mont. 476 (Mont. 2009) (ordinary meaning of contract terms; not technical meaning)
- Baker Revocable Trust v. Cenex Harvest States Coop., 164 P.3d 851 (Mont. 2007) (ambiguity determination; contract interpretation only if reasonable reading exists)
- Wurl v. Polson Sch. Dist. No. 23, 127 P.3d 436 (Mont. 2006) (ambiguity determination; legal question if no ambiguity)
- Asbeck (State ex rel. Mont. Dept. of Transp.) v., 80 P.3d 127 (Mont. 2003) (interpretation of contract terms; ascertain intention from writing)
