Hansel DeBartolo, MD, a surgeon at Surgicare of Joliet, a HealthSouth surgery center, brought forth the suit against HealthSouth and the center after Surgicare notified him that it was exercising a clause in his agreement that allowed it to buy out his shares in the center because he did not meet the one-third requirement.
Dr. DeBartolo brought forth the case in federal district court, which dismissed the suit. He then appealed to the federal Appellate Court.
The 7th Circuit Appellate Court ruled the that federal district court should not have heard the matter originally because it involved state law contract claims, as opposed to federal issues. The 7th Circuit Appellate Court overruled the lower court decision and remanded the case back to the lower federal court with instructions that the federal court did not have authority to even hear the matter.
The physician can now bring the suit as a state law contract claim in state court, as opposed to federal court.
Read the Appellate Court’s complete ruling.
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