In MetroHealth Sys. v. Khandelwal, 2022-Ohio-77, Ohio’s Eighth District Court of Appeals affirmed a trial court’s modification of a noncompete agreement between a hospital and a physician formerly employed by the hospital. Both courts reasoned that modifying the agreement, rather than striking it, protected the hospital’s interest.

The disputed noncompete agreement provided that the defendant physician, a specialized burn surgeon who had acted as interim director of the plaintiff hospital’s burn center, could not provide similar services within 35 miles of the plaintiff hospital for two years after his termination of employment. The physician resigned and accepted the position of director at a burn center less than 35 miles away. The hospital sued and sought a preliminary injunction to prohibit the physician’s new employment.

Following an evidentiary hearing, the trial court entered an order modifying the scope and duration of the noncompete clause. The trial court held that the physician could immediately begin employment as a surgeon with his new employer. The trial court, however, enjoined him from (1) assuming the role of director for one year, (2) using or transmitting privileged information gained through his previous employment, and (3) personally soliciting or referring any patient from his previous employment for one year. The plaintiff hospital appealed the trial court’s order, seeking to enforce the noncompete clause as written.

Ohio courts will enforce...

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