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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND IN RE: YONAS ZEGEYE HIRUT SELESHI :

YONAS ZEGEYE and HIRUT SELESHI Appellants v. KEVORK KESHISHIAN Appellee

: : : : Civil Action No. DKC 2004-1387 : : MEMORANDUM OPINION

This case is before the court on appeal from the order of Bankruptcy Judge Duncan W. Keir, granting in part and denying in part the objection of debtor/appellants Yonas Zegeye and Hirut Seleshi to the proof of claim of appellee Kevork Keshishian, M.D., Case No. 97-22971-DK (hereinafter "Bankr. Proceeding"), paper no. 1000, and ordering that the claim in the amount of $307,500 Trustee's with interest be paid Plan pursuant of to the Chapter 11

Third

Amended

Reorganization.

Bankr.

Proceeding, paper no. 1369.

Oral argument is deemed unnecessary

because the facts and legal arguments are adequately presented in the briefs and record, and the decisional process would not be significantly aided by oral argument. 8012. See Fed. R. Bankr. P.

For the reasons that follow, the court will affirm in

part and reverse in part the bankruptcy court's ruling, and remand to that court for further proceedings consistent with this opinion. I. Background The following a facts are and undisputed board except as noted.

Keshishian,

licensed

certified

radiologist, During

practiced at a hospital in New Hampshire until 1996.

that period, Keshishian, who was trained and certified before CT scans came into general use, worked with other radiologists who read CT scans. On one occasion Keshishian read a CT scan

incorrectly, whereupon the hospital recommended a two to three week continuing education course on CT scans, but Keshishian, not believing that such a course would be sufficient, instead ceased reading CT scans. Sometime in late 1994 or early 1995, Keshishian and Zegeye met. Keshishian wanted to relocate to Maryland from New

Hampshire, and Zegeye, who ran several MRI imaging centers in Pennsylvania but had himself relocated to Maryland, wanted to hire, or take on as a business partner, a radiologist for a new chain of medical services centers in Maryland. Zegeye alleges

that "[i]t was discussed that Dr. Keshishian was going to read all CT scans" and that it was "critical to Dr. Zegeye . . . that Dr. Keshishian . . . be able to read CT scans at the center." 2

Paper no. 5, at 4.

Keshishian, on the other hand, alleges that,

despite taking a month-long fellowship to learn more about CT scans, he "did not feel confident reading CT scans," and "[w]hen he began negotiations with Dr. Zegeye . . . he made clear to Dr. Zegeye that they needed to find other specialists to read these types of scans and it was agreed that this work would be outsourced." Paper no. 6, at 5.

On March 14, 1996, Keshishian and Zegeye entered into an employment agreement. See Bankr. Proceeding, paper no. 1000, That contract stated

Exh. B (hereinafter "Empl. Agreement").

that "the Radiologist agrees to read and interpret, and the Company agrees to employ the Radiologist to read and interpret all non-MRI and non-invasive diagnostic radiology studies of the Facility, on an exclusive basis." Empl. Agreement at

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Maryland Law