Skip to Content
News & Insights

Mike Guss Secures Mutual Dismissal, With Prejudice, After Five Day Jury Trial

The Hurley Clinic v Susan Moulton & Susan Moulton v The Hurley Clinic, Genesee County Circuit Court.┬áDefendant/Counter-Plaintiff is a nurse practitioner who worked for The Hurley Clinic. When her employment contract was set to expire on December 31, 2011, Hurley drafted a proposed Separation Agreement that agreed to waive the Covenant Not to Compete clause in her contract. Rather than executing the Separation Agreement that was provided to her, Defendant/Counter-Plaintiff unilaterally struck out a provision in the contract, signed it, and returned it to Hurley an hour before the deadline. As such, Hurley took the position that the Separation Agreement was void and the Covenant Not to Compete remained in effect. When Hurley discovered that Defendant/Counter-Plaintiff accepted employment with a competitor roughly a month after her employment with Hurley expired, which was located roughly a quarter to a half mile from Hurley, Hurley filed suit for Breach of the Covenant Not to Compete and Confidentiality. In response, Defendant/Counter-Plaintiff filed a counter-claim for fraud and breach of contract, primarily alleging that she was not paid correctly over the past 10 years. Thereafter, Defendant/Counter-Plaintiff’s new employer terminated her pursuant to Hurley’s Covenant Not to Compete. Thus, Hurley attempted to withdraw its lawsuit as the termination effectively stopped the competition. However, Defendant/Counter-Plaintiff refused to dismiss her claims, making a $300,000 settlement demand up until the date of trial. After a five-day jury trial, Defendant/Counter-Plaintiff accepted an offer of a mutual dismissal, with prejudice, without costs, interest, or attorney fees to either party.