Vosough v. Kierce (Summary)

BREACH OF CONTRACT/TORTIOUS INTERFERENCE

Vosough v. Kierce, No. L-6420-09 (N.J. Super. Ct. App. Div. Aug. 27, 2014)

The Superior Court of New Jersey reversed the judgment of a lower court regarding the obligations a hospital owed to independently contracted OB/GYN specialists.

Three independently contracted OB/GYN specialists brought a lawsuit against a hospital, arguing that an intolerable work environment, humiliation, and intimidation forced them to resign from their positions. The lawsuit alleged breach of contract, tortious interference with contract, and tortious interference with the prospective economic advantage. The OB/GYN specialists argued that they were entitled to compensation for the harassment they suffered at the hands of their supervisor. A jury verdict awarded damages to the OB/GYN specialists totaling $1,269,079. The hospital appealed the jury verdict.

The court found that none of the OB/GYN specialists’ claims should have even survived summary judgment. The hospital was found to have violated its own bylaws, specifically a policy to treat others with dignity and respect, by failing to discipline a belligerent and unreasonable supervisor. However, the state common law does not protect an employee from a hostile work environment created by a disagreeable supervisor. Also, because the OB/GYN specialists were contracted with the hospital itself, the specific supervisors could not be held personally liable for their actions. That the supervisors may have performed their duties poorly, or to the dissatisfaction of the OB/GYN specialists, did not mean that they were acting outside the scope of employment. Additionally, the court found that the hospital was not contractually obligated to the OB/GYN specialists beyond the guaranteed 60-day notice of termination. The terms of the at-will employment contract did not bind the hospital to pay anticipated lost wages for an indefinite period of time.