Laurence Kandel v. Urological Treatment and Research , Ralph Benson, Dean Knoll & Institute for Urological Research

This is a breach of contract case. The plaintiff physician entered into an employment contract with the defendant physician's group. The contract provided that the physician would work for the group for one year, and that the parties would then "negotiate in good faith" to give the employee physician the opportunity to purchase stock in the group. At the end of the physician's first year of employment, the parties negotiated, but reached an impasse. Subsequently, negotiations ceased, and the physician's employment was terminated. He filed suit against the group, alleging that the defendants breached the contract to "negotiate in good faith," and that the defendants committed promissory fraud in inducing him into signing the employment agreement. The trial court granted summary judgment in favor of the defendants on both counts. The physician now appeals. We affirm. Even if Tennessee recognizes a cause of action for breach of an agreement to negotiate in good faith, the evidence does not demonstrate such a breach, and does not establish promissory fraud.