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Georgia Dermatologic Surgery Ctrs. PC v. Pharis

The trial court erred in allowing the jury, over defendant's motion for directed verdict, to award plaintiff costs his PC incurred in establishing its business, because the PC was a non-party with no standing to complain of the breach of contract issue arising out of the termination of plaintiff's employment.

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A Fulton County jury awarded David B. Pharis, M.D. $1,300,000 in damages in his claim against Georgia Dermatologic Surgery Centers, P. C. GDSC for breach of contract. On appeal, GDSC contends that because this Court in Georgia Dermatologic Surgery Centers, P. C. v. Pharis, 323 Ga. App. 181 746 SE2d 678 2013 GDSC I affirmed the trial court’s ruling that GDSC’s termination of Pharis’s employment contract was void and of no legal effect, the trial court erred in conducting a trial based on the presumption that GDSC had breached Pharis’s employment contract. In addition, GDSC contends that the trial court erred in i disallowing the introduction of GDSC’s shareholders’ agreement, ii unilaterally redacting portions of the employment agreement, and iii allowing Pharis to recover as damages expenses paid by his professional corporation, a separate legal entity. For the reasons set forth below, we affirm in part and reverse in part.

Pharis sued GDSC asserting, inter alia, a claim for breach of contract/wrongful termination.1 Pharis moved for partial summary judgment and GDSC filed a cross-motion for summary judgment. The trial court granted Pharis’s motion for partial summary judgment on the issue of liability on Pharis’s breach of contract claim and denied GDSC’s motion for summary judgment. GDSC appealed the trial court’s ruling on the cross-motions for summary judgment, and this Court affirmed the trial court’s order in GDSC I. After a trial on damages, a jury awarded $1,300,000 to Pharis on his breach of contract claim. GDSC filed a notice of appeal from the judgment entered on the jury’s verdict.

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