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Contracts
Breach of Contract
Failure to Pay

Tad Callahan, Center for Women’s Health and Family Birth, a Medical Group Inc. v. Keith Dillon, Keith O. Dillon, M.D. Inc.

Published: Oct. 5, 2013 | Result Date: Jun. 2, 2013 | Filing Date: Jan. 1, 1900 |

Case number: 1389432 Verdict –  $58,455

Court

Santa Barbara Superior


Attorneys

Plaintiff

Kristine L. Mollenkopf


Defendant

Eugene J. Martinez


Experts

Defendant

Paige Covell
(technical)

Facts

Plaintiff Dr. Tad Callahan invited defendant Dr. Keith Dillon to practice in Dr. Callahan's office in Santa Maria. Plaintiff claimed that in July 2006, the parties entered into an agreement whereby Dr. Dillon agreed to pay Dr. Callahan on a monthly basis for certain office overhead and operating expenses incurred in the ordinary course of business. Plaintiff filed a suit for breach of contract.

Contentions

PLAINTIFF'S CONTENTIONS:
Plaintiffs contended that defendants breached their contract by failing to pay $58,455 due and owing at the time the agreement, as modified during the course of their association, which was terminated in October of 2010.

DEFENDANT'S CONTENTIONS:
Defendants denied owing anything, and alternatively claimed that plaintiffs' staff had failed to timely and properly bill for Dr. Dillon's services to health insurance companies, resulting in substantial economic losses to Dr. Dillon. Dr. Dillon also alleged Dr. Callahan forced him to utilize the billing system in place in the office, and refused to allow Dr. Dillon to retain his own billing staff or service, and otherwise took advantage of Dr. Dillon's weaker position in the arrangement.

Damages

Dr. Callahan claimed $58,455 due and owing. Dr. Dillon alleged substantial economic losses as an offset.

Result

The jury found in favor of plaintiff on all causes of action. Plaintiff was awarded $67,929, which includes $9,474 in costs, inclusive of $1,000 as reasonable attorney fees pursuant to California Civil Code section 1717.5.

Deliberation

45 minutes

Length

five days


#118276

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