Mark Nelson, a licensed physician and shareholder of Capital Cardiology Associates, P.C. (CCA) decided to get involved in a weight loss program called "Take Shape for Life" (TSFL). All went well until CCA got word that Nelson was raking in about $600,000 a year, while CCA's own investment was unprofitable.
Because it suspected that Nelson might have been diverting patients or funds, CCA gave the doctor an ultimatum: terminate his affiliation with TSFL or resign from CCA. After choosing the latter, Nelson sued his former company for "tortious interference with prospective business relations" and breach of the parties' shareholder agreement for refusing to buy-back his shares.
When the Albany County Supreme Court tossed the case, Nelson went to the Appellate Division, Third Department, which found the breach of contract claim dead on arrival -- particularly since the government agreement didn't expressly require that the sums sought be paid. The appellate court also didn't think his "tortious interference" claim could survive, in the absence of any alleged wrongful acts, such as fraud or misrepresentation.
Did his arguments lack weight?
To view a copy of the Appellate Division's decision, please use this link: Nelson v. Capital Cardiology Assoc., P.C.