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Enforceability Of Covenant Contract Between Doctor And Hospital

Question

A cardiology practice in Beverly Hills, California wants to expand its medical practice, and it makes a lucrative offer to a cardiologist currently practicing in Santa Monica. Santa Monica is five miles from Beverly Hills, and they are linked by Wilshire Boulevard, one of the primary roads in the area. Both Beverly Hills and Santa Monica are in the Los Angeles metropolitan statistical area, which has a population of millions, has numerous hospitals, and stretches for many miles. To protect the practice against competition, the cardiology practice requires the cardiologist to enter into the following restrictive covenant: Employee agrees that, during Employee’s employment by Employer and for a period of two years following the effective date of any termination of Employee’s employment, Employee will not, directly or indirectly, alone or in conjunction with another person or entity, engage in the practice of cardiology or internal medicine within a fifty-mile radius of Employer’s office on Wilshire Boulevard, Beverly Hills, California.

1.    Using the framework of analysis, provide an analysis of enforceability of this covenant. Please provide a complete explanation of your analysis and support of your conclusion.
2.    If you believe that the covenant is unenforceable, what would you change to make it enforceable? If you believe that the covenant is enforceable, what changes would make it unenforceable?

Summary

The question belongs to Law and it discusses about a scenario where a hospital hires a cardiologist and to resist competition asks the cardiologist to enter into a covenant that restricts the practice of cardiology within 50 mile radius. The enforceability of this covenant has been discussed.

Total Word Count 143

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