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Contracts
Partnership
Breach of Fiduciary Duty

David Azoulay, Active Care Physical Therapy v. Valley View Medical Clinic Inc.

Published: Mar. 19, 2011 | Result Date: Jan. 14, 2011 | Filing Date: Jan. 1, 1900 |

Case number: 30-2008-00115416-CU-FR-CJC Bench Decision –  Defense

Court

Orange Superior


Attorneys

Plaintiff

William B. Hanley
(William B. Hanley Attorney at Law)


Defendant

Roland E. Bye

Thomas R. Malcolm


Facts

David Azoulay worked as an independent contractor through his company, Active Care Physical Therapy. Azoulay had worked as an independent contractor for Valley View Medical Clinic for five years out of one of its offices. Valley View sold its assets to a third party in November 2008.

Azoulay claimed that an oral partnership agreement existed between him and Valley View. Active Care sued Valley View alleging breach of fiduciary duty and fraud. The matter proceeded to a bench trial.

Contentions

PLAINTIFFS' CONTENTIONS:
Azoulay contended that the oral partnership agreement entitled him to a certain percentage of the assets sold in November 2008. Further, he contended that he was owed 10 years of future income, based on Valley View's failure to honor the partnership agreement.

DEFENDANT'S CONTENTIONS:
Valley View contended that Azoulay was strictly an independent contractor, and was never a partner. It denied the existence of any oral partnership.

Damages

Azoulay sought $250,000 in compensatory damages and $500,000 in past lost earnings.

Result

The judge rendered a defense verdict.


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