Flagel v. Southwest Clinical Physiatrists, P.C.

755 P.2d 1184, 157 Ariz. 196, 5 Ariz. Adv. Rep. 23, 1988 Ariz. App. LEXIS 71, 1988 WL 27056
CourtCourt of Appeals of Arizona
DecidedMarch 31, 1988
Docket1 CA-CIV 9377
StatusPublished
Cited by7 cases

This text of 755 P.2d 1184 (Flagel v. Southwest Clinical Physiatrists, P.C.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flagel v. Southwest Clinical Physiatrists, P.C., 755 P.2d 1184, 157 Ariz. 196, 5 Ariz. Adv. Rep. 23, 1988 Ariz. App. LEXIS 71, 1988 WL 27056 (Ark. Ct. App. 1988).

Opinion

OPINION

EUBANK, Judge.

Our primary consideration is whether the trial court erred in granting summary judgment based on its conclusion that the payment by defendant-appellee, Southwest Clinical Physiatrists, P.C. (“Southwest”), by check, with “Paid in Full” noted on its face, to plaintiff-appellant, Donald Flagel (“Flagel”), of the undisputed part of Fla-gel’s disputed claim constituted an accord and satisfaction of Flagel’s whole claim. First, however, we consider whether the trial court erred in denying Flagel a change of judge based on waiver. Finally, we consider whether the trial court erred in striking Flagel’s amended motion for partial summary judgment based on the lack of citations to the record in his statement of facts.

FACTS

Flagel agreed to work as a physical therapist for Southwest as an independent contractor. Under his contractor agreement, Flagel would receive $26,000 as base pay for services rendered from April 21, 1983 to April 20, 1984. Under the addendum to the agreement, Flagel would receive a percentage of the revenue collected from Southwest Rehabilitation Services as incentive pay within one month of the contract termination date. The independent contractor agreement also provided that Fla-gel would indemnify Southwest for all costs including attorneys’ fees incurred by Southwest in enforcing the agreement. The agreement was renewed for the next year, but a different addendum was attached. It provided that Flagel would receive one-third of the revenue collected from Southwest Rehabilitation Services in excess of $100,000 as incentive pay, but the addendum did not address when Flagel would receive the incentive pay. The addendum provided:

Yearly incentive shall be based on the following formula:
Mr. Flagel shall receive additional salary for the 1984-1985 contract year, payable as mutually agreed upon, the amount which shall be equal to 33V3% of the amount of revenue collected from Physical Therapy Services, (Southwest Rehabilitation Services) over and above the initial $100,000 collected from such services. This formula shall be revised yearly, or more often as necessary, based on Southwest Clinical Physiatrists expense profiles.

In March 1985, Flagel and Southwest met, and Southwest decided not to renew the agreement. Flagel was upset that Southwest was not going to pay its accounts receivable:

A. ... [Flagel] I asked them about the accounts receivable at that time. They said if it isn’t in by the end of my contract, I would not receive any reimbursement for it.
Q. What do you mean if it doesn’t end by the end of your contract, you wouldn’t receive any reimbursement for it?
A. According to the doctors, if the money wasn’t collected by April 20, then I had no rights to it according to them even though I did the work on them.

On April 8, 1985, Southwest wrote Flagel, stating that “[t]he final payment due you will be paid at the end of your contract, April 20, 1985, based on the collections of the first three weeks of April, 1985.” Fla-gel testified that he understood by the term “final payment” that the doctors at South *198 west “were wiping out their obligation” to Flagel:

Q. Was your understanding of Adri-anna [who wrote the April 8, 1985 letter on behalf of Southwest], the that [sic] author’s use of the word “final payment” to be that they were sending you the final payment due you under the contract?
A. [Flagel] She might have thought that. I didn’t.
Q. I’m just asking what you interpreted her understanding to be. I realize that that is not your interpretation. I’m just asking you for your interpretation of what she was saying here.
A. That’s what it says.
Q. You thought, then, that according to the doctors, that by sending you this check, that they were wiping out their obligation to you; is that correct? The final check, the final payment due you referred to in Exhibit 8.
A. That’s what they are referring to in that paragraph, yes.
Q. And you knew that that’s what they were — that was their understanding?
A. Yes.

In its letter of April 26, 1985 to Flagel, Southwest enclosed “a check for full payment of your 1984-85 Independent Contract with Southwest Clinical Physiatrists.” Southwest explained in the letter that the amount of the check was based on “all payments received through April 20, 1985.” On the enclosed check for $2,803.00, Southwest noted, “1984-1985 Independent Contract — Paid in Full.” Flagel testified that he understood that by this notation on the check, Southwest was submitting the check in total satisfaction of its obligations to Flagel:

Q. That was my question. So it was your understanding that the doctors and Southwest Clinical Physiatrists were submitting to you [a] check marked as Exhibit 10 as final payment, total satisfaction of all of their obligations to you?
A. Yes, that’s what they say.

Flagel blacked out the notation on the check and cashed the check:

Q. I see something, a black square on Exhibit 10. Did you make that black square?
A. Yes. It had written paid in full or paid in full or something, something on that amount and I wasn’t going to sign a check and agree that I was paid in full which is the reason of the proceedings that we’re going through right now.
Q. Did you understand that they had sent you Exhibit [10] as your payment in full?
A. That’s what they think, yes.
Q. But that isn’t what you think?
A. Correct. 1

In June 1985, Flagel filed a complaint for breach of contract seeking $37,810.71 from Southwest. This amount of damages claimed was one-third of the amount in the accounts receivable on April 15, 1985, minus the amount collected at the expiration of the agreement. ($122,119.65 — $8,687.53) + S = $37,810.71.

On October 28, 1985, Flagel filed a motion for partial summary judgment. He argued that the addenda to the agreement were unambiguous and that Southwest was obligated to pay him a percentage of the amounts remaining in the accounts receivable on April 20, 1984 and on April 20, 1985. In response, Southwest moved to strike Flagel’s motion for partial summary judgment, based on Flagel’s failure to set forth any statement of facts in support of his motion, contrary to Rule 3.2(g)(1), Local Rules of Practice for the Superior Court of Maricopa County. On November 13, 1985, Flagel filed an amended motion for partial summary judgment, setting forth the following statement of facts:

The parlies hereto, entered into a written contract called “Independent Contractor Agreement” and “Employment *199

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Cite This Page — Counsel Stack

Bluebook (online)
755 P.2d 1184, 157 Ariz. 196, 5 Ariz. Adv. Rep. 23, 1988 Ariz. App. LEXIS 71, 1988 WL 27056, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flagel-v-southwest-clinical-physiatrists-pc-arizctapp-1988.