Judge refuses to throw out Laconia Clinic suit

LACONIA — A Superior Court judge has refused to dismiss a suit brought against the Laconia Clinic by two doctors who charge that the group medical practice is illegally withholding the their severance.

Judge James D. O’Neill III denied the motion on each of the five counts contained in the suit brought by Doctors Alan Awrich and Adora Maharaj who allege the clinic violated their contractual rights when its member doctors indefinitely suspended the ability of former doctors to sell back their shares in the closed corporation upon their departure.

In a hearing on the dismissal motion held June 7 in Belknap Superior Court, Biron Bedard, the attorney representing Laconia Clinic PC and Laconia Clinic Properties LLC, argued the case should be dismissed because Awrich and Maharaj cannot show that the clinic or its officers acted in bad faith.

But Michael Perrson, the attorney for the two doctors, said that clinic president Dr. Arnold Miller had acted in bad faith by not announcing in the meeting notice that freezing the stock-repurchase provision would be on the agenda, as required by the bylaws. He argued that had Awrich and Maharaj known that was the plan, they would have chosen to sell back their shares before the meeting took place.

Awrich holds 80 shares valued at $500,000 and Maharaj has 40 shares valued at $250,000, the suit states.

In the ruling issued July 27 O’Neill said in the suit Awrich and Maharaj have made a good argument that “Miller’s bad faith (was a) breach of his fiduciary duty.”

The suit alleges the Clinic’s actions constitute breach of contract, breach of duty to act in good faith, breach of what both parties to agreement assume to be true, harm to the plaintiffs because they relied the Clinic’s promise, and breach of fiduciary duty.