$11m damages awarded in dispute between VEI and ophthalmologist

The court dismissed Dr Kitchen’s multi-million-dollar counter claim against Vision Eye Institute.
Vision Eye Institute took Dr Kitchen to court for a breach of contract, claiming the he broke his agreent to work for the company for five years after it bought his Central Queensland Eye Centre practices in 2006.
Dr Kitchen counter-sued the company over a contract breach relating to staff runeration and alleged it convinced him to sell the business using misleading statents and false financial incentives.
A judgment handed down this week states the claim and counterclaim each sought tens of millions of dollars.
CQEC had consulting clinics at North Mackay, Mater Medical Centre in Rockhampton and Gladstone’s Mater Medical. Dr Kitchen also did day surgeries at Bundaberg’s private hospital.
The judgment details claims that Dr Kitchen allegedly terminated his ployment contract and set up new practices.
Vision Eye Institute argued he breached his contract in doing so.
The company argued it lost out financially from Dr Kitchen’s termination and breach of contract, including the closure of the Rockhampton and Gladstone clinics.
Expert accountants assessed the closure costs to be $256,571 on top of lost earnings, believed to be more than $10 million.
The price Vision Eye Institute paid for CQEC included a large number of shares, worth $5 million in 2006, with the company taking on a $7.8 million bank debt.
Justice Peter Applegarth found in Vision Eye Institute’s favour about the company’s shares, ruling Dr Kitchen and his wife were not yet entitled to shares owed to th.