C&A Forces Dissolution of Zombie Hospital Joint Venture

C&A Forces Dissolution of Zombie Hospital Joint Venture

A California Knox-Keene Act hospital joint venture partner failed to provide doctors and patients and failed to abide by the exclusivity provisions agreed to in the joint venture agreement. The derilict partner ignored the client’s attempts to resolve without litigation. C&A quickly moved to compel arbitration to dissolve the joint venture and sought millions of dollars in lost profits, costs and fees. The derelict partner atttempted to thwart the arbitration but the Superior Court ordered it to arbitration as the parties had agreed. Once faced with an arbitration hearing, the derilict partner relented and conveyed 100% of the interest in the joint venture to C&A’s client. The parties separated on amicable terms without engaging in further legal maneuverings.