Supreme Court rules in favor of clinic

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By The Associated Press

Story Published: Dec 17, 2009 at 11:32 AM MST

Story Updated: Dec 17, 2009 at 11:32 AM MST

GREAT FALLS - The Montana Supreme Court has ruled in favor of the Great Falls Clinic in a case in which seven doctors alleged a noncompete clause in the clinic's contract is illegal.

The physician-owned organization's contract says if doctors leave the clinic, they may not practice in Cascade County or any surrounding county for three years, or they would receive a lesser share of the profits, stock and partnership interest in the clinic.

Seven physicians sued the clinic and in October 2008 a District Court issued a judgment in favor of the doctors. The clinic appealed.

The Montana Supreme Court this week reversed the lower court's ruling in the case of five of the physicians, who had already signed separation agreements with the clinic and agreed to the lower payments. The high court said a jury should decide if the contract is fair in the case of the other two physicians, who did not sign separation agreements.

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