AI Generated Opinion Summaries

This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.

Facts

• A dentist, after resigning from KidsKare, a dental service provider, opened his own practice within three miles of his former employer, violating the covenant not to compete stipulated in his employment agreement. This covenant restricted him from offering similar dental services within a hundred miles of any KidsKare office for one year post-termination and limited his practice to no more than ten percent Medicaid or child patient services within the same geographic and temporal constraints.

Procedural History

• [Not applicable or not found]

Parties' Submissions

• Appellant (Dr. Mann): Argued that KidsKare lacked standing to enforce the covenant not to compete, the covenant was unenforceable as written and not amenable to modification, KidsKare waived its right to enforce the covenant, and a prior breach by KidsKare rendered the covenant unenforceable.
• Appellee (KidsKare): Contended that the covenant not to compete was enforceable, amenable to modification by the district court, and that KidsKare had not waived its right to enforce the covenant nor breached the contract in a manner that would excuse Dr. Mann from compliance.

Legal Issues

• Whether KidsKare had standing to enforce the covenant not to compete.
• Whether the covenant not to compete was enforceable as written or amenable to modification.
• Whether KidsKare waived its right to enforce the covenant not to compete.
• Whether a prior breach of the covenant by KidsKare rendered it unenforceable.

Disposition

• The district court's judgment in favor of KidsKare was affirmed, including the modification of the covenant not to compete and the award of attorney fees for the appeal.

Reasons

• The Court, per Judge Wechsler with Chief Judge Vigil and Judge Kennedy concurring, held that the covenant not to compete was amenable to modification by the district court as the employment agreement explicitly provided for amendment of any unenforceable provision to the extent deemed reasonable by the reviewing court (paras 1, 12). The Court found Dr. Mann's arguments regarding KidsKare's lack of standing, waiver of the right to enforce the covenant, and prior breach by KidsKare to be unpersuasive (paras 6-8, 17-18, 19-24). The Court determined that the modified covenant, restricting Dr. Mann's practice to within thirty miles of a KidsKare office for one year, was reasonable and enforceable, and did not violate public policy or harm the public interest (paras 9-16). The Court also awarded attorney fees to KidsKare for the appeal, as stipulated in the employment agreement (para 25).