ATLANTA, April 28, 2003 (PRIMEZONE) -- Orthodontists who say they were misled by a company that promised to better manage their practices have won a significant legal battle in an Atlanta federal court. Federal District Judge Beverly B. Martin ruled that the restrictive covenants contained in both the Employment Agreements and the Service Agreements entered into with OrthAlliance, Inc. are unenforceable. The Court granted the plaintiff orthodontists' motion for partial summary judgment.
The plaintiffs, Dr. Douglas Smith, Dr. Wayne Hester, Dr. Dana Fender, Dr. Sammy A. Caves, and Dr. George T. Mitchell, III, each signed agreements in which they turned over the management of their orthodontic practices to OrthAlliance, Inc. But they say the company, a subsidiary of Orthodontic Centers of America, Inc. (NYSE:OCA), failed to live up to the terms of their agreements, while continuing to charge substantial management fees.
The plaintiffs were represented in the case by Roger Cowie, Brian Colao and Chris LaVigne of the Dallas, Texas law firm of Locke Liddell & Sapp LLP; Henry D. Fellows, Jr. of the Atlanta, Georgia law firm of Fellows, Johnson & La Briola; and Joseph B. Gray, Esq., a Tifton, Georgia attorney. The attorneys represent more than 40 other orthodontists in similar lawsuits against OrthAlliance, Inc. pending in Texas, California, Florida, Washington, Indiana, Colorado and Tennessee.
U.S. District Judge Martin's ruling in favor of the orthodontists applies only to portions of their complaint. Others claims, including those relating to fraud and seeking monetary damages, are still pending.