Michael Holmes, former COO at Yale New Haven (Conn.) Hospital, is suing his former employer, alleging that it breached a confidentiality and noncompete agreement, according to court documents obtained by Becker’s.
The complaint, filed Nov. 5, claims that the hospital violated terms of Mr. Holmes’ employment contract by refusing to make agreed-upon covenant payments after his resignation. These payments were instituted in order to provide post-employment compensation, according to the complaint, and would be granted if he complied with obligations in his noncompete. These obligations included that he would not work within 120 miles of New Haven, would assist in litigation if needed post-employment, honored confidentiality terms of his contract and provided written notice of intent to be bound by the covenant within 30 days of termination.
On Jan. 21, 2025, Mr. Holmes gave notice of his resignation, effective March 3, and took a job at the University of Florida Health System in Gainesville, a system more than 1,000 miles away from YNHH.
The hospital claimed Mr. Holmes was ineligible for payments due to insufficient notice of resignation, citing a separate employment agreement, not the noncompete agreement in question. The first covenant payment of $248,500 was due by Sept. 3, 2025, which the hospital refused to pay. It also indicated that no future payments would be made. The anticipated covenant payments would have totaled $994,000.
Mr. Holnes argues that the hospital breached the noncompete by failing to make the required payments, despite his full compliance and by wrongfully invoking a separate employment agreement to justify nonpayment.
He seeks damages for the unpaid first payment and all future payments, totaling nearly $1 million. He also seeks damages for attorney fees and pre-judgement interests under Connecticut law.
In response to the lawsuit, a spokesperson from Yale New Haven told Becker’s that the hospital is “aware of the lawsuit that has been filed. Yale New Haven Health denies the allegations and intends to vigorously defend against them.”
