![]() ![]() 3 Community Clinical Services leased the services of these doctors from SOCHS. At the time that each doctor began at Court Street, he or she was new to the area and did not have an existing patient base. In 1997, Farrago and Stone began practicing at Court Street Family Practice, a branch of Community Clinical Services. SOCHS also financially assists Community Clinical Services by forgiving its management fees and other expenses, and by transferring money into its account to ensure that Community Clinical Services has cash available. Because Community Clinical Services does not generate enough revenue to cover its costs, SOCHS reallocates funds from St. SOCHS maintains one depository account for its healthcare system. Mary s are each separate corporations, but SOCHS provides management, human resources, information technology, and financial services for all three. SOCHS, Community Clinical Services, and St. Mary s Regional Medical Center, a Lewiston hospital. Among these entities are Community Clinical Services, a physician office practice with multiple sites, and St. BACKGROUND As an integrated healthcare system, SOCHS supports and manages several healthcare entities in the Lewiston-Auburn area. 2 and (3) even if the contracts contain a liquidated damages provision, it is unreasonable and therefore unenforceable. has since changed its name, but it has been referred to as SOCHS throughout this litigation to avoid confusion. On appeal, the doctors contend that (1) the restrictive covenants are unenforceable, (2) their contracts contain an optional buyout clause, not a liquidated damages provision, 1 Sisters of Charity Health System, Inc. ![]() Following a jury-waived trial, the Superior Court (Androscoggin County, Delahanty, J.) enforced the restrictive covenants and ordered each doctor to pay SOCHS $100,000 pursuant to the liquidated damages clauses in their contracts. to enforce restrictive covenants contained in contractual agreements between the doctors and SOCHS. (SOCHS),1 a nonprofit integrated healthcare system, sued its former employees Douglas Farrago, M.D., Raymond Stone, D.O., and Carolyn Kase, D.O. MAINE SUPREME JUDICIAL COURT Decision: 2011 ME 62 Docket: And-10-418 Argued: ApDecided: Panel: Reporter of Decisions SAUFLEY, C.J., and LEVY, SILVER, MEAD, and JABAR, JJ.
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