Employment Termination Leads to Legal Dispute
In Patel v. Tulsa Pain Consultants, Inc., the Oklahoma Supreme Court considered whether an employer could recover attorney fees in a wrongful termination case. The dispute arose after Dr. Jayen Patel, a former employee and shareholder of Tulsa Pain Consultants (TPC), filed a tort claim for wrongful termination. The trial court ruled in favor of TPC, concluding that Patel was not an at-will employee and therefore could not pursue a wrongful termination claim under Oklahoma law.
Following the verdict, TPC sought attorney fees for its defense, citing a provision in the employment agreement. While the Court of Civil Appeals upheld the trial court’s decision, it denied TPC’s request for attorney fees. The Oklahoma Supreme Court granted certiorari to review whether the employer had a contractual right to recover legal costs.
Court Examines Contractual Interpretation
The key issue before the court was whether the attorney fees provision in the employment contract applied to Patel’s wrongful termination claim. The employment agreement stated that “if the services of an attorney are required by a party to secure the performance or interpretation of this agreement, the prevailing party will be entitled to reasonable attorney fees, costs, and other expenses.”
TPC argued that Patel’s lawsuit required the court to interpret the employment agreement to determine whether he was an at-will employee, thereby triggering the attorney fees provision. Patel, on the other hand, contended that his lawsuit was a tort claim and not a contractual dispute, making the attorney fees provision inapplicable.
Supreme Court’s Ruling on Attorney Fees
The Oklahoma Supreme Court found that the lower courts had, in fact, interpreted the employment agreement when determining Patel’s employment status. Because the contract’s terms were used to establish that Patel was not an at-will employee, the court ruled that the attorney fees provision applied. The court concluded that TPC, as the prevailing party, was entitled to recover its legal fees.
The decision vacated the Court of Civil Appeals’ order denying TPC’s request for attorney fees and remanded the case to the trial court to determine the appropriate amount. The ruling affirms the enforceability of attorney fee provisions in employment agreements when contract interpretation plays a role in resolving legal disputes.
Employment Law Guidance
For employees and businesses navigating wrongful termination claims and contractual disputes, our labor and employment law team at Whitcomb, Selinsky, PC provides experienced legal representation. Contact us to discuss your case and explore your options.
Joe Whitcomb
