Date: 01-14-2013

Case Style: Patrick Van Schoyck, M.D. v . Southcrest, LLC

Case Number: CJ-2011-6699

Judge: Daman H. Cantrell

Court: District Court, Tulsa County, Oklahoma

Plaintiff's Attorney: John Edward Rooney

Defendant's Attorney: David E. Streck and Jessica V. Hunt

Description: Patrick Van Schoyck, M.D. sued Southcrest, LLC and Community Health Systems, Inc. on a breach of contract theory for failure to pay wages claiming:

1 Defendant, Community Health Systems, Inc is a Delaware corporation doing or formerly doing business in Tulsa County, Oklahoma.

2. Defendant, SouthCrest, LLC is an Oklahoma limited liability company doing business in Tulsa County, Oklahoma and is a subsidiary of Defendant Community Health Systems, Inc.

3. In 2006, Dr. Van Schoyck entered into a written contract with Defendants.

4. Dr. Van Schoyck fully performed the medical services described in the contract.

5. In 2009, Defendants informed Dr. Van Schoyck that they would no longer pay him his guaranteed base salary unless he executed a new employment agreement.

6. Beginning in October 2009, Defendants failed to pay Dr. Van Schoyck his guaranteed base salary pursuant to the terms of the written contract.

7. Defendants have never paid Dr. Van Schoyck the other compensation due in addition to the guaranteed base salary COUNT I: BREACH OF EXPRESS CONTRACT - FAILURE TO PAY WAGES

8. Dr. Van Schoyck incorporates paragraph 1-7.

9. Defendants Community Health System Inc. and South Crest, LLC jointly and severally brcached Dr.Van Schock’s contract of employment by failing to pay the compensation he is entitled to under the contract.

10. Dr. Van Schoyck’s employment pursuant to the written contract terminated no later than September 30, 2011.

11. Defendants have failed to pay Dr. Van Schoyck all wages due to him.

COUNT II: FRAUD

12. Dr. Van Schoyck re-alleges paragraph 1-1 1.

13. Dr. Van Schoyck was fraudulently induced by the Defendants to enter into an employment contract based on false representations that he would be paid a guaranteed salary for five years. At the time the employment contract was formed, Defendants had no intention of paying his guaranteed base salary for five years.

COUNT III: QUASI-CONTRACT (QUANTUM MERIT)

14. Dr. Van Schoyck realleges paragraphs 1-13.

15. Dr. Van Schoyck rendered valuable services to Defendants with a reasonable expectation of being compensated.

16. Defendants knowingly accepted the benefit of the services.

17. Defendants would be unfairly benefited by the services if full compensation was not paid to Dr. Van Schoyck.

18. Defendants are liable to Dr. Van Schoyck for the full value of the medical services Dr. Van Schoyck provided to the Defendants.

COUNT IV: ACCEPTANCE OF BENEFITS (BREACH OF IMPLIED CONTRACT)

19. Dr. Van Schoyck realleges Paragraphs 1-18.

20. Defendants voluntarily accepted the benefit of the offer by Dr. Van Schoyck to perform valuable services for SouthCrest.

21. Defendants knew or should have known that Dr. Van Schoyck intended to receive a specific benefit in return for his services.

22. Defendants breached the implied contract by failing to pay Dr. Van Schoyck all amounts owed him as set forth above.

WHEREFORE, Dr. Van Schoyck prays for judgment against each and every one of the Defendants for actual and punitive damages in an amount in excess of $10,000, plus liquidated damages and for an award of pre-judgment and post-judgment interest, court costs, attorneys’ fees and any other legal or equitable remedy deemed appropriate by the Court.

Defendants generally denied all of the allegations made by Plaintiff. They also claimed that Plaintiff's allegations failed to state a claim, that Plaintiff did not enter into a mutually agreeable contract with them in 2006 and that any claim by the Plaintiff was barred by the statute of frauds.

Subject to and without waiving the foregoing, and without accepting any burden of proof on the matter, Defendant states that Plaintiff’s claim is barred and/or limited by the paroi evidence rule.

Subject to and without waiving the foregoing, and without accepting any burden of proof on the matter, Defendant states that Plaintiff failed to file suit within the applicable statute of limitations.

Subject to and without waiving the foregoing, and without accepting any burden of proof on the matter, Defendant states that Plaintiff’s claims are barred and/or limited by the doctrines of estoppel, laches, and waiver.

Subject to and without waiving the foregoing, and without accepting any burden of proof on the matter, Defendant states that Plaintifr s claims are barred and/or limited by the doctrines of accord and satisfaction.

Subject to and without waiving the foregoing, and without accepting any burden of proof on the matter, Defendant states that Plaintiff failed to mitigate his alleged damages.

Subject to and without waiving the foregoing, and without accepting any burden of proof on the matter, Defendant states that it acted at all times in good faith and had reasonable grounds to believe that its actions complied with the law.

Subject to and without waiving the foregoing, and without accepting any burden of proof on the matter, Defendant states it has neither acted nor failed to act in a manner entitling Plaintiff to punitive damages.

Subject to and without waiving the foregoing, and without accepting any burden of proof on the matter, Defendant states an award of punitive damages to Plaintiff, if any, should be determined by way of a bifurcated proceeding.

Defendant reserves the right to raise any and all other defenses that may become evident during discovery and during any other proceedings in this action.

Outcome: Settled and dismissed with prejudice.

Plaintiff's Experts:

Defendant's Experts:

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