# Gallagher v. Penobscot Community Healthcare

> Superior Court of Maine · March 21, 2017

URL: https://www.frixlaw.com/law-library/cases/10811427

## Case

- **Court:** Superior Court of Maine
- **Decided:** March 21, 2017
- **Precedential status:** Unpublished
- **Opinion:** Opinion
- **Judges:** Ann M. Murray
- **Cited by:** 0 later opinions in the Frix Law Library

## Citator (automated)

- No negative treatment found by the automated citator. That is not the same as a confirmation that the case is good law; read the citing cases.
- Full citator and citing cases: https://www.frixlaw.com/law-library/cases/10811427

## How later opinions describe it (automated extraction)

- holding that the defendant was entitled to summary judgment when the record does not show what statements were made, or when, where, or how they were made
- holding that "[t]he Whistleblowcrs' Prolection Act embodies a statutory public policy against discharge in retaliation for reporting illegal acts [andl a right to the 14 discharged employee" which would serve to vindicate the same right as the tort of wrongful discharge

## Opinion text

STATE OF MAINE SUPERIOR COURT
PENOBSCOT, ss. CIVIL DIVISION
DOCKET NO. CV-16-54

WILLIAM F. GALLAGHER, M.D., )
Plaintiff, )
)
v. ) ORDER ON DEFENDANTS'
) MOTION TO DISMISS
PENOBSCOT COMMUNITY HEAL TH CARE, )
ROBERT P. ALLEN, M.D., NOAH NESIN, M.D. )
TERRY WHITE, and LORI DWYER, ESQ., )
Defendants. )

Before the Court is Defendants Penobscot Community Healthcare, Robe11 Allen, Noah

Nesin, Terry White, and Lori Dwyer's motion to dismiss. Defendants move, pursuant to M.R.

Civ. P. 12(b)(6}, to dismiss all claims brought against them in Plaintiffs complaint. Heming was

held on this matter on November 29, 2016. I laving reviewed the parties' filings and their

respective arguments, and for the reasons stated below, Defendants' motion to dismiss is hereby

granted in part, denied in part, and decision is reserved in part.

BACKGROUND

This action stems from the alleged improper conduct by doctors and staff at Penobscot

Community Healthcare ("PCHC") in co1mection with the termination of Dr. Gallagher's

employment. 1 The following factual background accepts facts from Plaintiffs' complaint, which

are deemed true when evaluating a motion to dismiss.

1 AL all times relevant to this action, PCUC was Dr. Gallagher's employer, and the individual Defendants

acted in their managerial capacities and within the comse and scope of their employment with PCJIC
and/or with the authorization of PCilC. (Pl. 's Com pl. ~~ 12-13.) Dr. Allen was the Executive Medical
Director until April I, 2014; Dr. Nesin has been the Chief Medical Officer since March 2013; Mr. White
was the Chief' Human Resources Officer unttl April 2014; and Ms. Dwyer was the General Counsel and
Compliance and Risk Officer, and became Chief Human Resources Officer in April 2014. (id. ,i,i 3-6.)
L>r. Gallagher was born in 1935 and at all times relevant to this action was older than 40 years of age. (id.
,i 7.)
Dr. Gallagher, a licensed and board-certified dermatologist, and PCIIC entered into a

Professional Employment Agreement ("employment contract") on January 25, 2008, whereby

Dr. Gallagher agreed to perform professional medical services in return for compensation from

PCHC. (Pl.'s Compl. iii! 8, 14-15.) On that same day, Dr. Gallagher entered into an Asset

Transfer Agreement ("asset agreement"), in which PCHC acquired Dr. Gallagher's entire private

practice. (Id. 116-17.) The employment contract states that employment may be terminated as

follows:

Termination. This Agreement may be terminated by either party without cause
upon sixty ( 60) days advance written notice to the other party.

Immediate Termination. Notwithstanding any other provision of this Agreement,
PCHC may immediately terminate this Agreement in the event that Employee ...
fails to meet what it considers critical terms of the Agreement.

(Ex. A§§ 10.2-10.3.)2 One of the critical terms of the contract describes the standard of practice

expected of the employee under the agreement:

Standard of Practice. Employee shall retain independent medical judgment and
responsibility for the practice of medicine. However, Employee shall comply
with procedures which may be established and/or adopted by PCIIC to assure the
consistency and quality of all services. Physician shall deliver services in a
competent and professional manner, consistent with quality assurance and
utilization review standards of PCHC ....

(Id.§ 3.)

2 The general rule is that only the facts alleged in the complaint may be considered on a motion to
dismiss, and any additional materials presented to the cou11 must either be excluded by the court or the
motion shall be converted to a motion for summary judgment. Moody v. Stale Liquor & [,olle1y Comm 'n,
2004 ME 20, ~ 8, 843 A.2d 43. However, the court may consider documents that are central to the
plaintiffs clairn(s) and/or referred to in the complaint without conve1ting the motion to a motion for
summary judgment. Id. t I I. Herc, Defendants attached as Exhibit A the Physician Employment
Agreement and the Asset Transfer Agreement, both of which were referenced explicitly in Plaintiffs
complaint. (Comp I. ,,1 15-17.) Additionally, Plaintiff alleges breach of contract, which directly refers to
the employment contract. See Moody, 2004 ME 20, ~ 12, 843 A.2d 43 (finding that documents
containing the terms of the contract were central to the plaintiffs claim). Therefore, the Court will
consider Exhibit A without converting this motion to a motion for summary judgment.

2
Sometime after Dr. Gallagher joined PCHC, staff complained that he was "old school,"

among other complaints, and these complaints were investigated by Defendants. (Pl.' s Comp!.

ii~ 19-20.) Plaintiff alleges that PCHC insufficiently investigated staff complaints because the
investigation relied on inaccurate complaints and excluded positive information provided by

other witnesses. (Id. ,r 20.) Dr. Gallagher protested to Defendants about the insufficiency of

their investigation until he was threatened with adverse employment action if he did not cease

and desist his own allempts to investigate the complaints. (Id. , 22.) Dr. AIJen, Executive

Medical Director, stated to Dr. Gallagher that the investigation was "not undertaken with

intellectual vigor" and told Dr. Gallagher to retire, which he declined to do. (Id. ii 23-24.) No

evidence was uncovered suggesting that Dr. Gallagher's conduct interfered with his ability to

provide quality medical care to his patients. (Id. ii 26.)

Additionally, between 2008 and 2013, at least one patient complained that Dr. Gallagher

was elderly, senile, and demcnted. 3 (Id. ,i 20.) Plaintiff alleges that investigations into patient

complaints were mishandled in a similar fashion as the investigations into staff complaints. (Id.

,1,i 31-34.)
On or about June 27, 2013, PCHC suspended Dr. Gallagher from employment effective

July 1, 2013, due to staff complaints. 4 (Id. ~ 28.) On or about April 3, 2014, Dr. Gallagher's

employment was terminated by PCHC on the basis of patient complaints that were unrelated to

age. (id. ,1,i 31, 45-46.) Plaintiff claims these adverse employment actions were just part of a

3 Additionally, Plaintiff alleges "Dr. Gallagher received l S complaints over several years" but Plaintiff
does not specify the "several years" referenced. (Pl. 's Comp!. 1 37.)
4 It is unclear from the complaint when and if Dr. Gallagher's suspension ended prior Lo bis termination.

Plaintiff cites adverse employment actions rcpo11cd to the Maine State Board of Liccnsure in Medicine on
July 15, 2013, October 17, 2013, and April 14, 2014. (Pl.'s Compl. 1 52 .) The first date is two weeks
after Dr. Gallagher's suspension, the second date is nut referenced anywhere in the complaint, and the
third date is two weeks aner Mr. Gallagher was terminated from his employment. (Id. ~~ 28, 46.) The
Maine State Board of Licensure dismisser.I lhc complaint after an investigation that included, among other
things, evaluation by a ncuropsychologist. (Id. ~,J 53 -5tl.)

3
"continued pattem of willful, illegal, and unjustified adverse treatment and employment action

taken against Dr. Gallagher starting as early as 2010." (Id.) Specifically, Plaintiff alleges that

Dr. Allen chose an arbitrary number of patient complaints-two per year-as a pre-textual basis

for Laking adverse employment actions against Dr. Gallagher. (id. ~ 38.) Additionally, Plaintiff

alleges that PCIIC misrepresented the basis for its employment decision. (Id.~ 29.)

In December 2012, PCHC advertised to fill a new dermatology position. (Id. , 50.) In

February 2013, a few months before Dr. Gallagher's employment was suspended, PCHC hired

another dermatologist, Elaine Eliezer, to "help [Dr. Gallagher] out" and "to help him change

patients' perception of him." 5 (Id. ~ 51.)

Dr. Gallagher alleges that PCHC and the individually named defendants "published oral

and written false and defamatory statements about his professional relations with staff and

patients, ... making them known to third parties."6 (Id. ii 86.) These statements included the

following:

• Dr. Gallagher bullied, intimidated, and verbally and physically abused staff.
• Dr. Gallagher retaliated against staff who complained of his behavior.
• Dr. Gallagher had too many staff and patient complaints and these complaints
were substantiated as true and accurate and were serious enough to affect his
position at PCHC and his medical license.
• Kenneth Nadeau, PA-C did not trust Dr. Gallagher's clinical judgment.
• Dr. Gallagher mistreated, intimidated, discriminated against, and neglected
patients.
• Dr. Gallagher provided patients with care that was inappropriate or otherwise
did not meet PCHC's standards.
• Dr. Gallagher misused medical equipment with patients.
• Dr. Gallagher was Loo old to care for patients and was senile and suffered
from dementia during the time he cared for them.

5 Plainti trs complaint notes these phrases in quotation marks, so the Court puts them in quotation marks
for continuity. However, it is unclear who actually said these remarks.
6 Plaintiffs complaint merely states thal Defendants published these statements and made them known to

third pa1tics. Plaintiff docs not state where these statements were published or what exactly the
statements were, instead providing a summary oflhcir content.

4
(Id. ~ii 87-88.) During Dr. Gallagher's time with PCHC, Defendants made offensive remarks

about his age so frequently that it created a hostile or otfonsivc work enviromncnt. (Id. ii 58.)

As a result, Dr. Gallagher "has suffered and will continue to suffer severe emotional pain,

distress, suffering, mental anguish, loss of enjoyment of life, inconvenience, loss of reputation,

loss of past and future income, and other non-pecuniary losses, as well as pecuniary losses and

attorney's fees, costs, expenses, and other damages." (Id.~ 66.)

Plaintiff alleges several claims: ( l) age discrimination under the Maine Human Rights

Act ("MHRA"), (2) retaliation under the MHRA, (3) intentional infliction of emotional distress,

(4) negligent inlliction of emotional distress, (5) defamation, (6) injurious falsehood, (7) tortious

inte1ference with existing and prospective advantageous economic relations, and (8) breach of

contract.

DrSCUSSION

1. Legal Standard.for Motion to Dismiss

Dismissal of a complaint is proper only when the complaint fails to state a claim for

which relief may be granted. See M.R. Civ. P. 12(b)(6). A motion to dismiss tests the legal

sufficiency of the complaint, in re W(lge Payment Litig. v. Wal-Mart Stores, Inc., 2000 ME 162,

~ 3,759 A.2d 217, and is a pure question of law. Persson v. Dep't of Human Servs., 2001 ME

124, ~ 8, 775 A.2d 363. Generally, to be sufficient, a complaint need only consist of a short and

plain statement of the claim to provide fair notice of the cause of action. Johnston v. Me. Energy

Recovery Co., /,td. P 'ship, 20 l O ME 52, if l 6, 997 A.2d 741. However, allegations of fraud musl

be pied with particularity. M.R.Civ.P. 9(b); Bean v. Cummings, 2008 ME 18, ii 8, 939 A2d 676.

When deciding a motion to dismiss, courts must accept as lrue all well-pleaded facts in

the complaint and constrne most favorably to the plaintiff all reasonable inferences that can be

drawn from those facts. McClosky v. Mueller, 446 F.3d 262, 266 (1st Cir. 2006). "A dismissal

5
should only occur when it appears beyond doubt that a plaintiff is entitled to no relief under any

set of facts that he might prove in supp01t of his claim." Moody, 2004 ME 20, 1[ 7, 843 A.2d 43

(quotation marks omitted). "At this stage of the proceedings, '[t]he issue is not whether a

plaintiff will ultimately prevail but whether the claimant is entitled to offer evidence to support

the claims."' Jackson v. Birmingham Bd ofEduc., 544 U.S. 167, l 84 (2005).

II. Claims under the Maine Human Rights Act (Counts J & 2)

Plaintiff alleges that Defendants discriminated against him based on his age, and thus

violated his rights under the MIIRA. Additionally. Plaintiff alleges that Defendants unlawfully

retaliated against him.

As a threshold matter, in order for a plaintiff to take advantage of the full array of

remedies available under the MHRA, he must exhaust administrative remedies prior to filing a

complaint. 5 M.R.S. § 4622 (201 l). Section 4622 prohibits a plaintiff from recovering attorney

fees, civil penal damages, compensatory damages, or punitive damages unless he "alleges and

establishes that, prior to the filing of the civil action, the plaintiff first filed a complaint with tl1e

[Maine Human Rights C)orrunission" and that the commission has taken some final action on the

administrative charge. Id.; see also Gordan v. Cummings, 2000 ME 68, ~ 11, 756 A.2d 942.

Dr. Gallagher did not file a complaint with the Maine Human Rights Conunission prior to

filing the present action. Therefore, his remedies are limited with respect to the MI-IRA counts.

A. Individual Defendants

Dr. Gallagher is pursuing both an age-discrimination claim and a retaliation claim under

the MHRA. In addition lo naming his employer PCHC as a defendant, he has also sued four

individual defendants in this action, and seeks relief under the MHRA as to all four of them.

Plaintiff in this case has specified that his employment retaliation claim is brought under

5 M.R.S. § 4633, not under 5 M.R.S. § 4572. (Pl.'s Opp'n to Defs.' Mot. Dismiss 5.) Plaintiff

6
then argues that the wording of § 4633,7 unlike the wording of the Maine Whistleblowers'

Protection Act ("WPA") 8 and § 4572, 9 prohibits a "person" from retaliating, and thus the

Fuhrmann v. Staples Ofjrce Supers/ore R., Inc., 2012 ME 135, 58 A.3d 1083, decision that

individuals cannot be held liable in a retaliation case does not apply to this case.

In Fuhrmann, the Court stated that:

Employers, not employees, have the power and resources to remedy
discrimination by implementing anti-discrimination polices, reinstating
employees or paying penalties. The remedies and penalties expressly established
in the MHRA arc indicative of the Legislature's understanding !that holding the
employer accountable protects the employee's right to vindication] as [the
remedies and penalties I are clearly designed to apply to employers, not individual
supervisors.

2012 ME 135,133, 58 A.3d 1083 (citations omitted).

The Fuhrmann court, after thorough analysis of the MHRA, including its purpose, public

policy, language, and the "context of the whole statutory scheme," reasoned that by holding the

ultimate employer accountable, as opposed to a co-worker employee, the WP A and the MHRA

ensured that lhe employee's right to vindication is protected. Id. ~ 31. The Couit noted:

The MHRA's express incorporation of vicarious liability and its employer­
specific remedies do not signal any intent to hold individual supervisors liable for
employment discrimination. ff the Legislature had intended to create individual
supervisor liability it would have done so explicitly in much clearer terms. In the

"A person may not discriminate against any individual because that individual has opposed any act or
practice that is unlawful under this Act or because that individual made a charge, testified, assisted or
participated in any manner in an investigation, proceeding or hearing under this Al:t." S M.R.S. §
4633(1) (emphasis added).
8 "No em1lloycr nrny discharge, threaten or otherwise discriminate against an employee regarding the

t!mployce's compensation, terms, conditions, location or privileges of employment because:
A. The employee, acting in good faith, or a person acting on behalf of the employee, reports
orally or in writing to the employer or a public body what the employee has reasonable cause to
believe is a violation of a law or rule adopted u11dcr the laws of this State, a political subdivision
of this State or the United States ...."
26 MKS.§ 833(1 )(A) (emphasis added).
'l "lt is unlawful employment discrimination . . . for an employer, employment agency or labor
organization to discriminate in any manner against individuals because they have opposed a practice that
would he a violation of this Act or because they made a charge, testified or assisted in any investigation,
proceeding or hearing under this Act." 5 M.R.S. § 4572(1 )(E) (emphasis added).

7
absence of any clear indication to that effect, we will not undermine the purpose
of these statutes by reading them to provide for individual supervisor liability.

Id.~ 34 (citations omitted).

The statutory provision relied upon by Plaintiff, § 4633, was enacted as emergency

legislation in 1993. Thus, § 463 3 was in existence in 2012 when the Law Court decided

°
Fuhrmann. 1 For several reasons, it would be inconsistent to prohibit retaliation claims in the

employment context against individuals under§ 4572(l)(A), yet permit retaliation claims in the

employment context against individuals under§ 4633. First, in an employment case the conduct

at issue under § 4572 and § 4633 would be the same or very similar. Under § 4572(1 )(A), an

employee who engages in a protected activity (employee reporting employer violation of federal

or state law) is protected from retaliation. Unoer § 4572( l)(TI), an employee who opposes a

practice that violates the MHRA or who makes a charge, testifies, or assists in any investigation,

proceeding, or hearing under the MHRA is protected from retaliation. Similarly, under § 4633,

an employee who opposes an act or practice that violates the MHRA or who makes a charge,

testifies, assists, or participates in any investigation, proceeding, or hearing under the MHRA is

protected from retaliation. Secondly, the remedies for a violation of a§ 4572 claim and a§ 4633

claim are the same. 11 rinally, federal law does not permit retaliation claims against individuals.

Fantini v. Salem State Coll., 557 F.3d 22, 30 (1st Cir. 2009) (no individual liability for

employees under Title VTT). 12

10 At least two of the Amicus Curiae briefs tiled with the Law Court in Fuhrmann called attention lo the
existence of§ 4633. See Brief for Me. Emp'l Lawyers Ass'n at 7, Fuhrmann, 2012 ME 135 (No. Yor-11­
551 ); Brief for Me. lluman Rights Comm 'n at 8, Fuhrmann, 2012 ME 135.
11 The Law Court has held that courts must evaluate WPA retaliation claims within the MHRA

framework . Me . l/11man Rights Comm 'n v. Me . Dep 't of Def &. Veterans' Servs., 627 A.2d I005, I 007
n.8 (Me. 1993) (the WPA does not prnvide a judicial remedy for retaliatory discrimination; the remedies
must be pursued through the MHRA).
12 Maine courts look to federal law when interpreting the MHRA . Bowen v Dept. of Human Servs., 606

/\.2d 1051, 1053 (use of federal law as an aid to interpreting Maine's anti-discrimination law is

8
The scope of the analysis in Fuhrmann was broad and the decision was not limited. The

Court stated: we "conclude that the WP A and the MHRA do not provide for individual

supervisor liability." Fuhrmann, 2012 ME 135, 1 I, 58 A.3d 1083. This Court is satisfied that

the MHRA does not permit employment-related claims to be pursued by one employee against

other employees. Post-A,hrmann, federal courts that have considered the question of whether

the MHRA permits employees lo be held liable under the MHRA have interpreted Fuhrmann

broadly to prohibit any employee liability under the MHRA. 13 See McLean v. Delhaize Am., No.

12-CV-00381-GZS, 2013 U.S. Dist. Lexis 55767 (D. Mc. Mar. 27, 2013) (the MHRA does not

permit retaliation claims to be pursued againsl follow employees, including supervisors); Doyer

v. RSU /6, No. 14-CV-25-JAW, 2014 U.S. Dist. LEXIS 115327 (D. Me. Apr. 23, 2014) (finding

that dismissal of MHRA age discrimination claim and MHRA retaliation claim was required

because the MHRA does not authorize liability against individuals).

Therefore, Counts I and II are dismissed against Defendants Robert Allen, M.D., Noah

Nesin, M.D., Terry White, and Lori Dwyer, Esq. individually for failure to state a claim upon

which relief may be granted.

B. Penob. cot Gommunity H~alth Center

The viability of Dr. Gallagher's discrimination and retaliation claims against PCHC are

different than the viability of those claims against the individual defendants. Defendants'

argument that the claims against PCITC must be dismissed includes an argument about the scope

appropriate); Fuhrmann, 2012 ME 135, ~ 27, 58 A.3d I083 (reference to federal law on interpretation of
the MHRA is uppropriale, but not determinative).
13 Pre-Fuhrmann, t'edernl courts also held that individuals were not liublc under the MHRA. Gough v. E.

Me. Dev 'p Corp., 172 r. Supp. 2d 221, 223-227 (D. Mc. 200 I) (noting that the MHRA was enacted
against the background of federal anti-discrimination statutes and the network of federal cases applying
those laws, the court held that no cause of action existed against a supervisor in his individual capacity
under the MHRA); Caldwell v. Federal Express, 908 r. Supp. 29, 36 (D. Me. 1995) (MRHA does not
impose individual liability).

9
of the remedies to which Dr. Gallagher would be entitled if he were to prevail on these claims. If

Dr. Gallagher prevails against PCHC on his age disctimination and retaliation claims, his

remedies for Counts I and IT would include only those remedies that do not constitute attorney

fees, civil penal damages, compensatory damages, or punitive damages. 14 5 M.R.S. § 4622(1); 5

M.R.S. § 46 I 3(2)(B). There is vigorous dispute between the patties about whether Dr.

Gallagher's failure to file a complaint with the MHRC forecloses all meaningful remedies such

that he would be left without relief even if he were to prevail on his claims. If he is without

meaningful remedies, dismissal is required. Pa/esky v Topsham, 614 A.2d 1307, 1310 (Me.

1992) (a claim is moot if no further recovery is available to a claimant); Gordon v. Cummings,

2000 ME 68, 1 10, 756 A.2d 942 ("[a]n issue loses its controversial vitality when fthe court's]

decision would not afford the appellant any real or practical relief'); Schoendorf v. RTH Mech.

Contrs., Inc., No. 12-CV-179-GZS, 2012 U.S. Dist. LEXIS 109541, *18 (D. Me. Aug. 6, 2012)

(a claim is moot when the plaintiff cannot be afforded any effective relief).

While Dr. Gallagher may be limited in the remedies that could be awarded if he is

successful on the liability issues in Counts I and II, the Court is satisfied sufficient remedies exist

to deny PCI-IC's motion to dismiss the MHRA claims on this ground at this time. While

reinstatement might be only for a period of 60 days given the termination clause of the

agreement, the act of reinstatement and corresponding compensation is sufTicient potential relief

to preclude granting the motion to dismiss on this basis. 15

1'1 "Attorney's fees under section 4614 and civil penal damages or compensatory and punitive damages
under section 4613 may not be awarded to a plaintiff in a civil action under this Act unless the plaintiff
alleges and establishes that, prior to the filing of the civil action, the plaintiff lirsl Liled a complaint with
the commission ...." 5 M.R.S. § 4622( I).
15 Plaintiff argues that even though he did not file with the MHRC he will still be entitled to back pay,

rcinstatcrncnt, front pay, liquidated damages, nominal damages, pecuniary damages, interest, and other
relief, if he prevails on his Ml!RA claims. (Pl. 's Opp'n to Defs .' Mot. Dismiss 3.) PCHC argues that 5
M.R.S. § 4622( I) clearly provides that compensatory damages are barred when the plaintiff docs not file
a complaint with the MHRC first, and that any awards intending to compensate a plaintiff for monetary

10
i. Count I: Age Discrimination

Dr. Gallagher alleges that PCHC terminated his employment based on his age.

The MHRA provides that "l'ilt is unlawful employment discrimination ... to discharge an

employee" based on "race or color, sex, sexual orientation, physical or mental disability,

religion, age, ancestry or national origin." 5 M.R.S. § 4572(1)(A).

To withstand a motion to dismiss in a case for age discrimination, a plaintiff must present

allegations showing the following:

I. the plaintiff was over the age of forty;
2. his work was sufficient to meet his employer's legitimate expectations;
3. his employer took adverse action against him; and
4. the employer sought a replacement with roughly equivalent job qualilications,
thus revealing a continued need for the same services and skills.

Mesnickv. General Electric Co., 950 F.2d 816,823 (1st Cir. 1991). 16 "This showing gives rise

to an inference that the employer discriminated due to the plaintifrs advanced years." Id.

Here, Dr. Gallagher has made sufficient allegations of age discrimination against PCHC

to withstand the motion to dismiss. At all times relevant to this action, Dr. Gallagher was over

the age of forty. Dr. Gallagher alleges that his work was sul1icient to meet his employer's

legitimate expectations. (See Pl. 's Comp!. ~I 27 ("[t]he quality of Dr. Gallagher's patient care

was reviewed annually by PCHC and found to be good").) PCHC took adverse action against

Dr. Gallagher by suspending him on June 27, 2013, and terminating his employment on April 3,

2014. Pinally, Dr. Gallagher alleges that PCHC hired a new dermatologist in Pebruary 2013, and

that the new hire's credential.s were commensurate with his credentials. (Id. , 51.) While

losses are compensatory damages. (Del's.' Reply to Pl. 's Opp'n to De[~.' Mot. Dismiss 2-3.) The Court
will not decide this issue at this time.
16 When interpreting the MHRA, it is appropriate to refer lo federal law interpreting the Age

Discrimination in Employment Act ("ADEA''). Me . Human Rights Comm 'n v. Auhum, 408 /\.2d 1253,
1261 (Me. 1979); French v Bath Iron Works, 45 F. Supp. 2d 69, 73 (D. Me. 1999).

11
Defendants argue that Dr. Gallagher was not "replaced," the Court is satisfied that the allegation

that another dermatologist was hired while Dr. Gallagher was under investigation by PCHC and

just a few months before Dr. Gallagher's employment was suspended is sufficient, at this stage

of the proceeding, to aver that PCI-IC had a continuing need for the services of a dermatologist

and that Dr. Gallagher was replaced. 17 While Plaintiff has failed to allege the age of his

"replacement," given the derogatory age-related statements allegedly made by PCHC through its

agents, sufficient allegations have been set forth by the Plaintiff to support the casual connection

clement of the claim.

Therefore, Defendants' Motion to Dismiss Count I against PCHC is denied.

ii. Count JJ: Retaliation

Plaintiff alleges that Defendants unlawfully retaliated against him when he objected to

Defendants' unlawful age-related discrimination for "protected activity undertaken by him in

response to the pretext Defendants offered in order to hide their illegal age discrimination" and

"for his objections to Defendants' age-related disctimination and his insistence that the pretext of

.. . complaints were illegitimate ...." (Pl.'s Comp!.~ 68, 70.)

To withstand a motion to dismiss in a case for unlawful retaliation in an employment

setting under the MRHA, the plaintiff must show the following:

1. the plaintiff engaged in protected conduct (opposed an act or practice that is
unlawful under the MHRA or made a charge, testified, assisted or participated
in any manner in an investigation, proceeding or hearing under the Act);
2. he suffered an adverse employment action; and
3. a causal connection existed between the protected conduct and the adverse
action.

17 If the Court were to hold that an employer's hiring of a new employee shortly before taking illegal

action against an existing employee could not, as a matler of law, satisly the requirement that the
"employer sought a replacement with roughly equivalent job qualifications, thus revealing a continued
need for the same services <'Ind skills," such ruling would merely insulate an employer who carefully
planned the illegal action. Se11, e.g., Phair v. New Page Corp ., 708 F. Supp. 2d 57 (D. Mc. 2010) (timing
of hiring the "replacement" imp01tant in a work force reduction case).

12
Bishop v. Bell At/. Corp., 299 F.Jd 53, 58 (1st Cir. 2002).

Before an employer can retaliate against a person for complaining about illegal conduct

such as age-related discrimination, the employer must be aware of the complaints. Stinson v.

SimplexGrinnell l,P, 152 F. Appx . 8, • t t ( 1st Cir. 2005). Moreover, the court should not draw

an inference to supply an essential element of a plaintiffs case. Id. at * 12.

The first question in the analysis must be: what illegal conduct or practice did Plaintiff

allegedly report, oppose, protest, or question? Here, Dr. Gallagher alleges that he "protested to

Defendants about the insufficiency of the investigation of the merits of staff [and patient]

complaints and attempted to investigate the complaints and advocate for himself, until he was

ordered by Defendants to cease and desist and was threatened with adverse employment action if

he did not comply with that order." (Pl. 's Comp!. ~~ 22, 33, 69.) Dr. Gallagher then alleges that

he was suspended and later terminated "in retaliation for his objections to Defendants' age­

related discrimination and his insistence that the pretext of patient and staff complaints against

him were illegitimate and required appropriate investigation before Defendants took adverse

employment action against him." (Id.~ 70.)

Similar to the plaintiff in Stinson, Plaintiff in this case has failed to allege that he

complained to PCTIC specifically about age-related discrimination or that such specific

cornplaint(s) were the cause for the adverse employment action. l 52 F. J\ppx. At * 12. The

Complaint in this case merely states that he protested U1e sufficiency of the investigation, not that

he complained to PCHC about age-related discrimination.

llowcver, unlike the plaintiff in Stinson, Plaintiff in this case has not had the opportunity

to amend his complaint. The Cou1t grants Plaintiff leave to amend his complaint to state the

particular reports/complaints, if any, that he made to PCIIC specifically about age­

discrimination, including the specific content of the complaint, the person(s) to whom the

13
complaint was made, and the approximate date of the complaint. If Plaintiff fails to allege that

he made any particular reports/complaints to PCHC specifically about age-discrimination, the

motion to dismiss Count II as to PCHC will be granted.

Therefore, the Court takes no action at this time on Defendants' motion to dismiss Count

II against PCHC.

Ill. Remaining Claims (Counts /II through Vlll)

Defendants argue that the remainder of the counts, Counts III through Vlll, fail as a

matter of law because the MHRA provides the exclusive state remedy for claims arising from

alleged age discrimination in employment. Alternatively, Defendants argue that the exclusivity

of the Workers' Compensation Act bars all of Plaintiff's tort claims and/or that Plaintiff has

failed to adequately allege a cause of action.

Dr. Gallagher's breach of contract claim (Count VIII) is not affected by the MHRA or the

Workers' Compensation Act because those statutes apply to the exclusivity of tort claims, not to

actions in contract. 39-A M.R.S. § 408 (2017); see also Liv. C.N. Brown Co., 645 A.2d 606,

607 (Me. 1994); Bard v. Bath Iron Works Corp., 590 A.2d 152, 155-56 (Me. 1991 ).

A. MHRA ~~ th~ Ex.elusive St~te R~megy

In support of their contention that the MHRA provides the exclusive state remedy for

employment discrimination, Defendants cite to Bard for the proposition that "[w]here a statutory

right and remedy are provided, there is no need to recognize a redundant tort." 590 A.2d at 156.

However, Bard concerns the applicability of the torl of wrongful discharge in an employment

discrimination case. Id. at 155-56. The Law Court found that the tort of wrongful discharge

assumes much of the same conduct as an employment discrimination claim, and therefore would

be redundant. Id. (holding that "[t]he Whistleblowcrs' Prolection Act embodies a statutory

public policy against discharge in retaliation for reporting illegal acts [andl a right to the

14
discharged employee" which would serve to vindicate the same right as the tort of wrongful

discharge). Here, the conduct alleged in Counts III through VIT relates to conduct that is

difforent from the alleged discriminatory conduct and different rights will be vindicated if Dr.

Gallagher is successful. 18 Therefore, as a matter of law, the MHRA does not bar the claims

asserted in Counts Ill through Count VII.

8. Workers' Compens~tion Ac:t

"The exclusivity and immunity provisions of the Workers' Compensation Act bar

employees from pursuing civil litigation against their employers for injuries incurred in the

course of employment." Li, 645 A.2d at 607. This bar extends to all t011s that seek recovery for

mental or physical injuries-even to employers' intentional torts. id. at 608; Cole v. Chandler,

2000 ME 104, 1 I I, 752 A.2d 1189; Gordan, 2000 ME, 113, 756 A.2d 942.

The immunity and exclusivity provisions of the Workers Compensation statute provide:

An employer ... is exempt from civil actions, either at common law or under
sections 901 to 908; Title 14, sections 8101 to 8118; and Title 18-A, section 2­
804, involving personal injuries sustained by an employee arising out ol' and in
the course of employment, or for death resulting from those injuries. 39-A
M.R.S. § 104 (2017) (emphasis added).

[A]n employee of an employer who has secured the payment of compensation as
provided in sections 401 to 407 is deemed to have waived the employee's right of
action at common law and under section I 04 to recover damages for the injuries
sustained by the employee. 39-A M.R.S. § 408 (2017) (emphasis added).

There is no dispute that PCHC is covered by the Maine Workers' Compensation Act (WCA).

The torts of defamation, injurious fahiehood, and t011ious interference with an economic

relationship arc broad enough to seek the recovery of economic damages. Cole, 2000 ME l 04, ~

t 3, 752 A.2d 1189 (finding that claims for defamation, invasion of privacy and interference with

18For example, defamation concerns the right of persons to be free from having harmful false statements
published about them . This is a different right than the right to be free from discrimination in the
workplace.

15
advantageous economic relations are broad enough to include recovery for mental and physical

injuries). Thus, recovery for economic damages for defamation, injurious falsehood, and tortious

interference (Counts V-Vll) is not precluded by the exclusivity provision of the Workers'

Compensation Act. Defendants' motion to dismiss Counts V-VII of Plaintifrs complaint will

not be granted based on the workers compensation exclusivity argument.

On the other hand, claims for intentional and negligent infliction of emotional distress, by

their very nature, allege "personal injuries" that seek recovery for mental injury. See Cole, 2000

ME 104, 752 A.2d 1189; Curtis v. Porter, 200 I ME 158, ~~ 18-20, 784 A.2d 18.

C. IIED and NIED

With respect to the emotional distress claims, determination of the motion to dismiss

depends on whether the conduct arose out of and in the course of Dr. Gallagher's employment.

A number of Law Cow1 cases have discussed the provision of an "i1tjury arising out of

and in the course of employment." In Fournier v. Aetna, the Law Court held:

[T]he term "in the course of• employment relates to the time, place, and
circumstances under which an i~jury occurs, the place where the employee
reasonably may be in pe1formance of the employee's duties, and whether it
occurred while fulfilling those duties or engaged in something incidental to those
duties. We then noted that the term "arising out of" employment means that there
must be some causal connection between the conditions under which the
employee worked and the injury, or that the injury, in some proximate way, had
its origin, its source, or its cause in the employment. We further noted that the
employment need not be the sole or predominant causal factor for the injury and
that the causative circumstance need not have been foreseen or expected.

2006 ME 71, i11s, 899 A.2d 787 (citations omitted). It is clear that an employee must have been

employed by the employer in question at the time of the injury to have the injury "arise out of

and in the course of employment." Cole, 2000 ME I 04, ~ 9, 752 A.2d 1189; Comeau v. Me.

Coastal Servs., 449 A.2<l 362 (Me. 1982) (satisfaction of both the "arising out ol" and "in the

course of' prongs is required for an injury to be compensable under the WCA).

16
To the extent Dr. Gallagher was emotionally harmed by the Defendants' conduct during

the course of his employment, such claims are excluded by the WCA.

i. IIED

It appears that some allegations in the Complaint allege that Plaintiff suffered emotional

distress at the hands of the Defondants not "arising out of or in the course of' his employment.

Defendants' conduct after the Plaintiffs employment was terminated is not covered by the

WCA. Therefore, the Comt examines whether the Plaintiff has adequately pled the elements of

the tort of IIED.

To establish the claim of intentional infliction of emotional distress, plaintiff must prove:

l. the defendant intentionally or recklessly inflicted severe emotional distress or
was ce1tain or substantially certain that such distress would result from his
conduct;
2. the conduct was so extreme and outrageous as to exceed all possible bounds
of decency and must be regarded as atrocious, utterly intolerable in a civilized
community;
3. the actions of the defendant caused the plaintiff emotional distress; and
4. the emotional distress suffered by the plaintiff was so severe that no
reasonable person could be expected to endure it.

Loe v. Town o.fThomaston, 600 A.2d 1090, 1093 (Me. 1991); Curtis, 2001 ME 158, 1 10, 784

A.2d 18.

Plaintiff has alleged the necessary elements for a claim of IIED, including, at this stage of

the proceeding, sufficient allegations as to the extremeness or outrageousness of the alleged

conduct and the severity of the emotional distress. Accordingly, Defendants' motion to dismiss

is granted as to Count III alleging intentional infliction of emotional distress for conduct lhat

occurred during the time Dr. Gallagher was employed by PCHC, but is denied to the extent the

questioned conduct allegedly occurred after termination of Dr. Gallagher's employment.

ii. NIED

With respect to the NIED claim, the plaintiff must establish that:

17
1) the dcfcndant(s) owed a duty to the plaintiff;
2) the defendant(s) breached that duty;
3) the plaintiff was harmed (severe emotional distress); and
4) the breach caused the plaintiffs harm.

Curtis, 2001 ME 158, 1~ 18-20, 784 A.2d 18. In Curtis, the court noted that plaintiffs face

significant hurdles in establishing the requisite duty, "in great part because the determination of

duty in these circumstances is not generated by traditional concepts of foreseeability. Although

each person has a duty to act reasonably to avoid causing physical harm to others, there is no

analogous general duty to avoid negligently causing emotional harm to others." Id.

The question of duty is a legal question, but is also highly fact driven. Brown v. Delta

Tau Delta, 2015 ME 75, ~ 9, 118 A.3d 789. "Because it is a mixed question of law and fact, the

facts in any given case will determine whether an entity has a duty to the putative plaintiff This

is a multi-far.;tored analysis that necessarily evokes policy-based considerations including the just

allocation of loss." id. The Law Court has recognized a duty to avoid causing others emotional

harm only in "very limited circumstances" where either there is a bystander liability claim, or "in

circumstances in which a special relationship exists between the actor and the person

emotionally harmed." Curtis, 2001 ME 158, 11 19, 784 A.2d 18 (a NlED claim may also lie

where the actor has committed another tort, but the NIED claim based on another tort is

subsumed within the other tort).

Plaintiff has not provided the Court with any citation for the proposition that that an

employer/former employer and employee/former employee have the type of special relationship

that would impose a duty on an employer to avoid emotional harm to an employee. In his

opposition brie( Dr. Gallagher did not provide any citation for his argument that an employer

and employee have the type of "special relationship" that would give rise to a NIED claim.

(Pl. 's Opp'n to Del's.' Mot. Dismiss.) This lack of citation is particularly telling. Moreover, this

18
Court has not found any Maine case supporting the proposition that employers/former employers

owe a tort duty to an employee/former employee to avoid emotional harm to the

employee/former employee. 19

In 2005, the Superior Court found that no "special relationship" existed between a former

cmploycc/cmploycr for purposes of imposing a duty on a former employer to avoid emotional

harm to the former employee. Jamison v. OHi, No. CV-03-569, 2005 Me. Super. LEXIS 161

(Nov. 29, 2005). In 2012, the Superior Court found that no "special relationship" existed

between an employer and employee imposing a duly on the employer to avoid causing emotional

harm to an employee. Savage v. Me. Pretrial Servs., No. CV-11-326, 2012 Mc. Super. LEXIS

26 (Jan. 27, 2012), aff'd on other grounds, 2013 ME 9, 58 A.3d 1138. As stated by the Superior

Court in Savage, "[fjhc employer/employee relationship does not evince the same vulnerability

as [the physician/patient, funeral home/family, psychotherapist/patient, attorney/client, and

adoption agency/adoptive parents! relationships." Id. at *13; see also Berry v. Worldwide

Language Res., Inc., 716 F. Supp . 2d 34, *51 (D. Me 2010) (employer-employee relationship is

not a "special relationship" for purposes of an NIED claim); Gavri/ovic v. WorldWide l,anguage

Res., Inc., No. 5-38-P-H, 2005 U.S. Dist. LEXIS 32134, *88 (D. Mc. Dec. 8, 2005).

19 The only types of relationships that the Law Court has found to satisfy the duty element of NIED are: a

physician-patient relationship; a hospital's relationship to the family of a deceased; a psychotherapist­
patient relationship; and a relationship between a custodial parent and her child. See R1J1an v. Watchtower
Rihle& TractSoc'yo/N.Y., Inc., 1999 ME 144, ~ 31,738 A.2d 839; Steadman v. Pagels, 2015 ME 122,
~, 27, l 25 A.3d 713. Additionally, the Superior Court has found that the attorney-client relationship
qualifies as a special relationship and that there was sufficient evidence of a special relationship between
adoptive parents and an adoption agency to survive a motion to dismiss . See Grant v. Shanoski, No. CV­
I S-363 , 2016 Me. Super. LEXIS I 13, at* 12 (July 7, 2016); Angelica v. Dnimmond, No. CV-02-1 S, 2003
Me. Super. LEXIS 197, at *28 (Sept. 9, 2003); Leroy v. Me . Children 's Home, CV-02-125, 2002 Me.
Super. Lexis 182, al *6-7 (Mc. Super. CL., Sep. 19, 2002).
The Law Court has declined to recognize a "special relationship" for purposes of NIED in the
following circumstances: the relationship between churches and its members; the fiduciary relationship of
a foreclosing mortgagee, personal representative, or sole owner of real estate; and the relationship
between a customer and pizz<1 delivery person . See Watchtower Bible, 1999 ME 144,131, 738 A.2d 839;
Oceanic Inn, Inc. v. Sloan's Cove, 2016 ME 34, ~ 24, 133 A.3d 1021; Curtis, 2001 MF. 158,121,784
A.2d 18.

19
This Courl finds that the Defendants did not owe a duty to the Plaintiff lo avoid

negligently causing him emotional harm. Therefore, to the extent Dr. Gallagher was allegedly

emotionally harmed by the Defendants' negligent conduct outside the scope and course of his

employment, there can be no recovery on a NIED theory, and Defendants' motion to dismiss is

granted as to Count IV alleging negligent infliction of emotional distress.

D. Count V: Defamation

To establish a prima facie case for defamation, the plaintiff must show:

l. a false and defamatory statement concerning another;
2. an unprivileged publication to a third patty;
3. fault amounting at least to negligence on the part of the publisher; and
4. either actionability of the statement irrespective of special hatm or the
existence of special harm caused by the publication.

Morgan v. Kooistra, 2008 ME 26,, 26,941 A.2d 447; see, e.g., Smith v. Heritage Stllmon, Inc.,

180 F. Supp. 2d 208, 221 (D. Me. 2002). Because truth is always a defense, a defendant is

"entitled to know precisely what statement is attributed to him [and the court has] always

required that the words must be proved strictly as alleged." Picard v. Brennan, 307 A.2d 833

(Me. 1973) (the "material words," those essential to the charge, must be proved as alleged). The

complaint must allege a particular statement so that lhc defendant is on notice of the claims

against him. Ilerilage Salmon, 180 F. Supp. 2d at 221 (citing Picard, 307 A.2d at 834-35)

(holding that the defendant in a slander action is entitled to know precisely what statement is

attributed to him); see also [,ester v. Powers, 596 A.2d 65, *68 n.4 (Me. 1991) (holding that the

defendant was entitled to summary judgment when the record does not show what statements

were made, or when, where, or how they were made).

Dr. Gallagher alleges that PCHC made defamatory statements concerning his job

performance, his professional relations with staff and patients, and his claim of age

discrimination and retaliation. (Pl.'s Comp!. ~, 86-88.) However, in his complaint, Dr.

20
Gallagher provides merely a si1mmarization of the content of these alleged statements. The lack

of specificity is compounded by the fact that multiple defendants have been named.

The Court grants Plaintiff leave to amend his complaint to state exactly what statements

he alleges were made, by whom they were made, when they were made, and how they were

"published ... making them known to third parties."20 If Plaintiff fails to amend his complaint

in this regard, the motion to dismiss Count V will be granted. Therefore, the Court takes no

action at this time on Defendants' motion to dismiss Count V.

E. CoLLuL Vl: lnjurious Falsehood

To establish a prima facie case for the tort of injurious falsehood, or slander of title, the

plaintiff must show:

1. the publication of a slanderous statement disparaging claimant's title;
2. that was false;
3. made with malice or with reckless disregard of its falsity; and
4. that caused actual or special damages.

Colquhoun v. Webber, 684 A.2d 405, 409 (Me. 1996). htjurious falsehood requires the showing

of a particular statement alleged to be slanderous. See Picard, 307 A.2d at 834-35. Here, as

above, Dr. Gallagher did not explain what exact statements were made, when they were made,

who made them, or how they were published to third parties.

The Court grants Plaintiff leave to amend his complaint to state what statements he

alleges were made, by whom they were made, when they were made, and how they were

"published ... making them known to third parties". If Plaintiff fails to amend his complaint in

this regard, U1e Motion to Dismiss Count VI will be granted. Therefore, the Court takes no action

at this time on Defendants' motion to dismiss Count VI.

20 This degree of specificity is required because the alleged statements also form the basis for the
lnterference With a Prospective Economic Damage count.

21
F. Count VII: To11ious Interference with an Economic R~latio11sh.h2

To establish a prima facie case for tortious interference with existing and prospective

advantageous economic relations ("tortious interference"), the plaintiff must show:

I. that a valid contract or prnspective economic advantage existed;
2. that defendant interfered with that contract or advantage through fraud or
intimidation; and
3. that such interference proximately caused damages.

Currie v. Indus. Sec., Inc., 2007 ME 12, ~ 31, 915 A.2d 400. It appears that Dr. Gallagher

alleges tortious interference both through fraud and through intimidation, so these are discussed

in turn.

i. interference through Fraud

The elements of interference through fraud arc:

I. making a false representation,
2. of a material fact,
3. with knowledge of its falsity or in reckless disregard of whether it is true or
false,
4. for the purpose of inducing another lo act or refrain from acting in reliance on
it, and
5. the other person justifiably relied on the representation as true and acted upon
it to the damage of the Plaintiff.

Rutland v. Mullen, 2002 ME 98, 1 14, 798 A.2d 1104. Interference of a prospective economic

advantage through fraud requires that Lhe plaintiff slate the circumstances surrounding the fraud

with particularity. M.R. Civ. P. 9(b) ("ln all avermenls of fraud or mistake, the circumstances

constituting fraud or mistake shall be stated with particularity. Malice, intent, knowledge, and

other condition of mind of a person may be averred generally.").

FED. R. CIV. P. 9(b) and M .R. Civ. P. 9(b) are substantially similar. Under FED. R. C1v.

P. 9(b), a plaintiff must, al a minimum, allege the "time, place, and content of the alleged false

representation," or the count is subject to dismissal. JS. McCarthy, Co. v. Brausse Diecutting &

Converting Equip. , 340 F.Supp.2d 54, 59 (D . Me. 2004); see, e.g., Bean v. Cummin1;s, 2008 MR

22
18, ~ 11, 939 A.2d 676 ("Where a Maine Rule of Civil Procedure is identical to the comparable

federal rule, 'we value constmctions and comments on the federal rule as aids in construing our

parallel provision,"').

Here, to the extent Dr. Gallagher alleges tortious interference through fraud, he has not

pleaded with sufficient paiticularity. Dr. Gallagher states that "Defendants' interforence

involved making false statements of material fact about staff and patient complaints and

Plaintiff's inability to continue his clinical position at PCHC and maintain his medical license ..

. ." (Pl. 's Comp!. ~ I 04.) Dr. Gallagher never states what exact statements were made, by whom

they were made, or when and where they were made.

In addition lo the alleged statements lacking the required specificity, the complaint fails

to allege the purpose for which the statements were made and whether another person(s)

justifiably relied on the statements as true and acted on them to the damage of the Plaintiff.

The Court grants Plaintiff leave to amend his complaint to address the deficiencies noted

above. The Court will reserve ruling on this aspect of this Count until after the Plaintiff has had

the oppo1tw1ity to file an amended complaint.

i. Interference through Intimidation

Interference through intimidation involves unlawful coercion or exlmtion, which is more

than "[m]erely .. . induc[ing] another to leave an employment or to discharge an employee by

persuasion or argument." Perkins v. Pendleton, 90 Me. 166, 177 (1897); Rutland, 2002 ME 98,

~ 16, 798 i\.2d 1104. "[llntimidation is not restricted to 'frightening a person for coercive

purposes,' but rather exists wherever a defendant has procured a breach of contract by 'making it

clear' to the parly with which the plaintiff had contracted that the only manner in which that

party could avail itself of a parlil:ular benefit of working with defendant would be to breach its

contract with plaintiff." Currie, 2007 ME 12, 1 31 , 915 A.2d 400 (quoting Pombriant v. Blue

23
Cross/Blue Shield ofMe., 562 A.2d 656, 659 (Me. 1989)); see also Currie, 2007 ME 12, if 31,

915 A.2d 400.

Hel'e, Dr. Gallagher has not alleged--even in a conclusory fashion-any sort of coercion

or extortion by PCHC or any of the individual Defendants such that would interfere with Dr.

Gallagher's third party contracts and/or relationships. (See Pl.'s Comp!. ,r,r 100-06.) Dr.

Gallagher simply states that Defendants interfered by "inducing, directly and indirectly, third

parties to discontinue their contracts ...." (Id. ,r 103 (emphasis added).) As discussed in

Perkins, interference through intimidation requires more than merely inducing another to act in a

certain way. 90 Me. 166 at 177.

Plaintiff is also given leave to amend Count VII with respect to his claim of Interference

through Intimidation, and the Court will not rule on Defendants' motion to dismiss Count VII at

this time.

G. Count VIII: Breach of Contuct

Plaintiff alleges that PCHC breached his employment contract by terminating his

employment without proper cause and thereby also breaching the Asset Transfer Agreement.

To prevail on a breach of contract claim, the plaintiff must prove: ( l) breach of a material

contract term, (2) causation, and (3) damages. Me. Energy Recovery Co. v. United Steel

Structures, Inc., 1999 ME 3 l, ,r 7, 724 A.2d 1248.

At this stage in the litigation, Dr. Gallagher has made a prima facie case for breach of

contract against PCHC. Dr. Gallagher alleges that PCHC breached the Physician Employment

Agreement by terminating his employment without proper cause. Dr. Gallagher states that there

was no proper caw;e for termination because he met all the critical terms of the agreement. The

essence of the contract was the employment relationship, and thus existence of the employment

24
relationship is a malerial contract term. Dr. Gallagher alleges that this termination directly

caused him to suffer economic injuries and damages, along with a list of other damages.

Therefore, PCHC's motion to dismiss is denied as to Count VIII.

CONCLUSION

To the extent the Comt has provided Plaintiff with leave to amend and he wishes to

amend, he shall amend his complaint no later Lhan April I0, 2017. To the extent Defendants

believe the amended complaint does not remedy the specific issues addressed by the Court in this

order, Defendants shall have until April '24-,, '2Ql z to renew their motion to dismiss on these
discrete points, and Plaintiff shall have until May 1, 2017 to reply.

The entry is:

1. Defendants' Motion to Dismiss is granted on Counts I, II, and IV as to
Defendants Robert Allen, M.D., Noah Nesin, M.D., Terry White, and Lori
Dwyer, Esq.
2. Defendant,;;' Motion to Dismiss Count III is granted in part and denied
in part as to all Defendants.
3. Defendant,;;' Motion to Dismiss Counts I is denied as to PCHC.
4. Defendants' Motion to Dismiss is granted on Count IV against PCHC.
5. The Court allows Plaintiff leave to amend his Complaint with respect to
Count II against PCIIC and Counts V, VI, and VII as to all Defendants,
and the Court reserves ruling on Defendants' Motion to Dismiss as to
these Counts.
6. Defendant's Motion to Dismiss Count VIII is denied.

The Clerk is directed to incorporate this Order into the docket by reference pursuant lo M.R. Civ .
P. 79(a).

,1
/'v.A, ;!r,.1/
(\,! .,
.,,,-­
Dated: March 21, 2017
Aiu M. Murray, usli~e
Maine Superior Cou1t

25

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Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/10811427. Public record. Not legal advice.
