Baptist Physicians Lexington, Inc. v. The New Lexington Clinic, PSC

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Appellant physicians were former employees of The New Lexington Clinic (NLC) who resigned from NLC to practice at a nearby facility opened by Baptist Healthcare System, Inc. through its subsidiary (collectively, Baptist). NLC brought actions against Appellants for breach of fiduciary duties, alleging that Appellants used confidential information and recruited NLC personnel while serving as members of the NLC board of directors. Baptist was joined as a defendant for allegedly aiding and abetting Appellants' breaches. The trial court granted summary judgment for Defendants, concluding that the complaints did not properly invoke Ky. Rev. Stat. 271B.8-300, which the trial court considered controlling as to actions involving breach of a Kentucky corporate director's duties. The court of appeals reversed and remanded, concluding that section 271B.8-300 controlled but that sufficient facts were alleged to state a cause of action. The Supreme Court affirmed but on other grounds, holding (1) section 271B.8-300, which did not abrogate common law fiduciary duty claims against Kentucky directors, did not apply in this case; and (2) NLC properly pled common law fiduciary duty claims on the alleged facts. Remanded.View "Baptist Physicians Lexington, Inc. v. The New Lexington Clinic, PSC" on Justia Law