Psychoanalytic Center, Inc. v. Burns

• Decision Date: 27 March 1979
• Citation: Psychoanalytic Center, Inc. v. Burns, 46 N.Y.2d 1002, 416 N.Y.S.2d 237, 389 N.E.2d 832 (N.Y. 1979)
• Parties: , 389 N.E.2d 832 PSYCHOANALYTIC CENTER, INC., Appellant, v. Robert A. BURNS, Respondent.
• Court: New York Court of Appeals Court of Appeals

Page 237

416 N.Y.S.2d 237

46 N.Y.2d 1002, 389 N.E.2d 832

PSYCHOANALYTIC CENTER, INC., Appellant, v. Robert A. BURNS, Respondent.

Court of Appeals of New York.

March 27, 1979.

Herman Lieblich and Fredric R. Zarkin, New York City, for appellant.

Roger Brian Cowan, New York City, for respondent.

OPINION OF THE COURT MEMORANDUM.

The order of the Appellate Division should be reversed, with costs, and the judgment of Supreme Court confirming the arbitration award reinstated.

After determining that respondent, a psychotherapist, had breached his agreement with appellant psychotherapy treatment center not to treat any clients of the center in the event his association with the center was discontinued, the arbitrator made an award of damages. The amount of that award was computed on the basis of the allocation of the fees received for professional services while respondent had been associated with the center. We hold that such award did not direct the splitting of fees or otherwise offend any public policy reflected in regulation 72.2 (subd. (a), pars. (4), (5)) of the Commissioner of Education which proscribe fee splitting.

What are prohibited by the regulation are certain voluntary prospective arrangements for the division of professional income in circumstances where such a...