GLF Secures Victory for Client: Business Litigation Case

Rym Partridge, DDS vs. Mikel Malek, Santa Cruz Superior Court, Case #16CV00347

GLF represented the Dr. Partridge who was the seller of a dental practice to the defendant buyer, Dr. Malek. Dr. Partridge was hired by Dr. Malek as an associate employee to work in the practice after the sale date.

The dental practice purchase agreement also provided for a $100,000 hold back for any potential lawsuits against Dr. Partridge for a year after the sale date. After one year had passed, Dr. Malek refused to release the $100,000 holdback and had not paid Dr. Partridge in full for wages owed for dental treatment as an employee.

Dr. Partridge filed a lawsuit for the unpaid wages and $100,000 hold back. Dr. Malek filed a counter claim claiming that the goodwill of the practice was not transferred to him by Dr. Partridge. Dr. Malek asked the jury to award him $1.1 million for lost profits.

After a several week jury trial, the jury returned a verdict in favor of Dr. Partridge and against Dr. Malek. The jury found against Dr. Malek on his cross complaint. Dr. Partridge ended up with a judgment against Dr. Malek which included attorney’s fees of $334,000 (in addition, the $100,000 hold back was released by Dr. Malek to Dr. Partridge). Collection was made on the judgment in favor of Dr. Partridge.