Facts

Bisher Akil and Michael Wensley, both M.D.'s, operated their medical practices together at a medical facility on Fairfax Avenue in Los Angeles. Akil entered into several contracts for the management of his practice with Adjuvant Management Inc. (Adjuvant), a management company owned by Wensley. Under these contracts, Adjuvant provided Akil with billing services, lab work, and medication purchases. Adjuvant purchased medications on Akil's behalf from Specialty Pharmacy (Specialty), a company also owned by Wensley.

In 2005, Akil and Wensley parted and Akil moved his practice to a Sunset Boulevard facility. Adjuvant and Specialty sued Akil claiming he was indebted to them, alleging that Akil had derived substantial profit from the provision of laboratory testing, provided by Adjuvant, and AIDS medications, provided by Specialty.

In March 2007, the parties reached a settlement, whereby Akil acknowledged that he owed Adjuvant $200,000. The parties agreed that the debt would be paid from future payments received by the practice, that the first $100,000 received would be paid directly to plaintiff, and that the parties would enter a new agreement for the management of Akil's practice, to be structured in the same manner as their previous agreements. Some time later, Adjuvant and Specialty instituted arbitration proceedings against Akil for breach of the settlement agreement. The arbitration was before Diane Wayne who found in favor of Adjuvant and Specialty. They then sought affirmation of the arbitration award.

PLAINTIFF'S CONTENTIONS:
During the arbitration proceedings, Adjuvant and Specialty claimed that Akil diverted reimbursements to a different P.O. box and refused to respond to Adjuvant's attempts to reach a mutually agreed upon management agreement.

Damages

Adjuvant and Specialty sought to recover the unpaid portion of Akil's $200,000 debt.

Result

The court affirmed the arbitration award in the amount of $177,709 for Adjuvant, plus costs in the amount of $34,201. Specialty was not awarded anything.

Other Information

FILING DATE: Jan. 18, 2006.