Facts

Claimant Jay Thomas, M.D., was initially hired pursuant to a July 1, 2008 five-year written employment agreement under which he was to perform administrative, research and clinical duties for City of Hope Medical Group Inc., and serve as chairman of the Department of Supportive Care Medicine at City of Hope National Medical Center.

In May 2011, claimant signed a new 5-year employment agreement.

CLAIMANT'S CONTENTIONS:
Claimant alleged that when respondents offered him the 2011 agreement, they intended to seek his removal from the chairman position but concealed their intentions from him. He also claimed that respondents' discussion with an executive recruiting firm regarding possible research for the chairman position and the recruiter's email seeking candidates for the chairman position was defamatory.

RESPONDENTS' CONTENTIONS:
Respondents contended that its intensive counseling efforts to help claimant succeed in his role were not successful and he was removed as chairman pursuant to the medical staff by-laws, though his employment was not terminated. Before the expiration of the 2008 agreement, in the midst of the counseling efforts by respondents and in connection with a corporate restructuring, claimant was offered employment with the newly formed City of Hope Medical Group. Prior to his formal removal as chairman, claimant signed a May 2011 employment agreement with the Group that contained substantially the same terms as the 2008 agreement.

Respondents demonstrated that when claimant entered into the 2011 agreement, he was aware of the potential for his removal as chairman. This, coupled with the fact that claimant was offered the new 2011 agreement along with every other doctor, supported respondents' position that there was no intent to deceive claimant about whether he was in risk of losing the department chairman position.

With regards to claimant's defamation claim, respondents claimed it never made any disparaging statements about claimant, and claimant did not suffer any damages because respondents or any executive recruiting firm never rejected him for any open position for which he applied as a result of any statements made.

Damages

Claimant asserted damages in excess of $2 million.

Result

The arbitrator found in favor of the respondents, finding that claimant had failed to establish breach of the implied covenant of good faith and fair dealing, promissory fraud, defamation, breach of contract or equitable estoppel.