Reddy v. Community Health Foundation Of Man

171 W.Va. 368 (1982)

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Nature of the Case

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Facts

Reddy (P) was a doctor who began his practice at the Man Appalachian Regional Hospital in 1977. The hospital closed its inpatient facilities and P looked for a new facility and found Community Health (D) who leased him office space. The contract with D was amended four times as D had trouble maintaining its cash flow. The third contract contained a restrictive covenant that stated P could not practice medicine within a 30-mile radius of Man, West Virginia for a period of three years after termination of his agreement with D. P claimed that the clause was a surprise to him and that he had worked in the area prior to and after contract with D and that P was not an employee but an independent contract who brought most of his patient with him. The lower court declared the noncompete clause valid and enjoined its enforcement. P appealed.