Facts

Smartmed Inc. dba Medsmart Consulting filed an arbitration claim against FirstChoice Medical Group Inc., involving a contractual dispute and allegations of fraud.

Respondent filed a counterclaim asserting causes of action for various breaches of duty, good faith, contract, and conversion.

CLAIMANT'S CONTENTIONS:
The parties allegedly entered into a Management Services Agreement. Respondent allegedly terminated the agreement without cause, resulting in damages. Claimant asserted claims for breach of contract and fraud.

RESPONDENT'S CONTENTIONS:
Respondent contended that it terminated the MSA due to claimant's allegedly fraudulent conduct. Claimant allegedly duped respondent into forming an Independent Physicians Association, which then led to the signing of the MSA.

Result

The arbitrator found FirstChoice liable to MedSmart in the amount of $1,027,545 for FirstChoice's breach of the MSA, which included $44,000 in monthly payments not made from November 2013 through February 2014, $827,560 in net lost profits, and $325,000 in lost investment of time and expenses. The arbitrator denied FirstChoice's claims in their entirety.

Other Information

Claimant SmartMed also obtained an award of attorney fees and costs of $1,027,545.27.