Facts

Claimants Bahram Bahremand and Kishan Thapar, M.D., were executives (CEO and CFO respectively) of respondent ProMed Health Care Administrators, a California corporation. Claimants had negotiated contractual bonus terms based upon EBITDA of ProMed in their employment agreements. In June 2007, ProMed was acquired by Prospect Medical Holdings. Claimants performed such that they believed they were entitled to bonuses following the acquisition, but Prospect refused to honor the contractual bonus agreements.

RESPONDENT'S CONTENTIONS:
Respondent contended that claimants were entitled to bonuses but not in the amounts sought by claimants, who alleged they were owed over $5.5 million in compensation, interest and waiting time penalties. Respondent also contended that a favorable amendment to the employment agreement was not enforceable.

Damages

Claimants sought to recover over $5.5 million in alleged bonuses for fiscal year 2008 and 2009, statutory waiting time penalties, and interest.

Result

The panel awarded claimants $3,544,491.

Other Information

Petition to Confirm Arbitration Award granted in Los Angeles Superior Court on June 22, 2010. FILING DATE: Feb. 17, 2009.