816 N.W.2d 133
S.D.2012Background
- Dr. Sorrell was an employee, director, and shareholder at the Surgical Institute in Sioux Falls since 2000, and became a shareholder in 2002.
- In 2006, he signed separate Employment and Shareholders’ Agreements; neither addressed extended leave for training.
- In 2007, Sorrell sought a one-year fellowship; the Institute approved extended leave and amended the agreements to permit it and to allow deferred compensation.
- The amendment did not address fringe benefits like malpractice insurance or health insurance.
- Sorrell participated in a one-year intensivist fellowship beginning July 2007, financed by a forgivable loan from Avera-McKennan Hospital conditioned on returning to Sioux Falls and practicing two years; the loan allowed suspending the non-compete.
- Sorrell returned to Sioux Falls April 2008; on June 10, 2008 he indicated he did not intend to return permanently; June 13, 2008 the Institute sent a letter confirming voluntary termination without cause; other communications suggested possible nine-month coverage or future involvement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Institute is entitled to a new trial | Institute argues insufficient evidence supports verdict | Sorrell contends record supports jury finding of no breach | No abuse of discretion; verdict supported by evidence |
| Whether summary judgment was proper on unjust enrichment claim | Implied contract claim survives despite written agreements | Written agreements control; no basis for implied contract or unjust enrichment | Summary judgment affirmed; no unjust enrichment due to express contracts |
| Whether exclusion of prior promises to return was error | Promises to return on leave were relevant to breach | Evidence not relevant after summary judgment; potential confusion | Exclusion affirmed; no reversible error |
Key Cases Cited
- Morrison v. Mineral Palace Ltd. P'ship, 603 N.W.2d 193 (S.D. 1999) (jury verdict not to be set aside lightly)
- Onnen v. Sioux Falls Indep. Sch. Dist. No. 49-5, 801 N.W.2d 752 (S.D. 2011) (standard for new-trial discretion)
- Baddou v. Hall, 756 N.W.2d 554 (S.D. 2008) (evidentiary and discretionary rulings depend on record support)
- Ronan v. Sanford Health, 2012 S.D. 6, 809 N.W.2d 834 (S.D. 2012) (trial court evidentiary rulings reviewed for abuse of discretion)
- Aetna Life Ins. Co. v. Satterlee, 475 N.W.2d 569 (S.D. 1991) (absence of express contract defeats implied-contract claim)
- Jurrens v. Lorenz Mfg. Co. of Benson, Minn., 578 N.W.2d 151 (S.D. 1998) (no implied contract where express contract governs rights)