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Rival pediatric practices to square off in court

Major doc group sues three physicians who defected to set up Cool Springs practice


Pediatricians Mark Hughes, Gabriela Morel and Gordon Davis opened Southern Pediatrics in October.
11-17-2009 7:08 AM

With allegations of trade-secret misappropriation, breach of contract and even unfairly competitive use of Google advertising, one of the largest pediatric practices in Middle Tennessee has filed suit against three doctors who recently left it to start their own pediatric group.

Centennial Pediatrics P.C., which operates 11 offices across the midstate, claims physicians Gabriela Morel, Gordon Davis and Mark Hughes violated the terms of their employment contracts when they established Southern Pediatrics PLLC.

Centennial filed separate but similarly worded lawsuits on Friday in Davidson County Chancery Court against each of the three practitioners, naming Southern Pediatrics as a co-defendant in all three actions. The complaint against Davis is available at this link.

According to state corporation records, Southern Pediatrics was created in July. Morel and Davis announced its planned opening in late September, and according to a recorded message on the office's telephone line, they began seeing patients at an office in the Cool Springs area on Oct. 15.

The lawsuits say Centennial fired Morel and Davis on Sept. 18 after learning of their plans. Hughes gave Centennial notice in early October and left soon thereafter, according to the lawsuit against him.

The three had signed employment agreements with Centennial that restricted them from disclosing proprietary information and prohibited them from competing with the firm until they had been away from it for a year. The complaints say Morel, Davis and Hughes "created and advertised Southern Pediatrics while employed by Centennial Pediatrics, in blatant violation of the agreement."

After setting up a Web site for Southern, the lawsuits claim, the three pediatricians "utilized Google Adwords to create a 'Google Sponsored Link' to their Web site that included the search term 'Centennial Pediatrics.' If a patient or prospective patient entered the keywords – Centennial Pediatrics – a Google Sponsored Link appeared on the search page announcing defendants' new competing practice."

Southern's principals are also alleged to have tried to hire away employees from Centennial.

"Centennial Pediatrics has already suffered and will continue to suffer irreparable injury and harm to its business" due to the actions of Southern and its physicians, the lawsuits assert, saying their conduct has been "contrary to honest practice in industrial or commercial matters" and "intentionally designed to gain unfair competitive advantage by causing harm to the ability of Centennial Pediatrics to compete in an open and fair marketplace."

Centennial seeks injunctions to halt the doctors' alleged violations of their employment agreements, and it asks for as-yet-unspecified compensatory and punitive damages. Waverly Crenshaw, Charles Williamson and William Fiala of Waller Lansden Dortch & Davis filed the complaints on behalf of Centennial.

Reached by phone Monday afternoon at Southern's office, Dr. Gordon Davis said he knew nothing about the lawsuits. NashvillePost.com then sent him a copy by e-mail, but no further response was forthcoming.

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