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SRG Consulting Inc. v. Eagle Hosp. Physicians LLC

The indemnity provision of the parties' agreement applied only to costs, damages and fees, ' "which relate to the services provided" ' under the agreement and, looking at the contract as whole, it is clear that word services relates to first plaintiff's marketing and sales efforts for the defendant's medical care and management services and not to disputes over the defendant's liability for commissions the first plaintiff allegedly earned in performing those services.

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SRG Consulting, Inc. “SRG” appeals the trial court’s grant of partial summary judgment to Eagle Hospital Physicians, LLC “Eagle”. SRG and Gerst Investments, LP “Gerst” sued Eagle, seeking an inspection of Eagle’s books and records and asserting related claims. Eagle counterclaimed and moved for summary judgment on two of its counterclaims. The trial court granted summary judgment to Eagle on its counterclaim for indemnification against SRG in two lawsuits Eagle is defending in other jurisdictions.1 For reasons that follow, we affirm in part and reverse in part. On appeal from the grant of a motion for summary judgment, we conduct a de novo review of the evidence, and we ” ‘construe the evidence and all inferences and conclusions therefrom most favorably toward the party opposing the motion.’ “ 2 Viewed in this manner, the evidence shows that SRG and Gerst are both owned by Dr. Steven Gerst. They are minority shareholders in Eagle, a company that contracts with hospitals to provide medical care and management services. SRG entered into a sales and marketing agreement the “Agreement” with Eagle whereby SRG would market Eagle’s services to hospitals. SRG employed a sub-agent, James Ludwig Management, Inc. “Ludwig Management”, to develop leads and market Eagle’s services.

Eagle purported to terminate its Agreement with SRG in a letter dated October 21, 2003. SRG alleges that Eagle continued to accept marketing and sales efforts from SRG and Ludwig Management for another four months. Ludwig Management continued to market Eagle’s services and secured two contracts during that time. SRG further alleges that Eagle has not paid commissions to SRG for those two contracts or others obtained before the alleged termination.

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