Shiva Shirvani v. Healthcare Holdings, LLC

Court of Appeals of Texas·Decided April 16, 2020·No. 05-19-00192-CV·Published

Opinion

AFFIRM; Opinion Filed April 16, 2020

In The

Court of Appeals

Fifth District of Texas at Dallas

No. 05-19-00192-CV

SHIVA SHIRVANI, Appellant/Cross-Appellee V.

CELEBRITY HEALTHCARE MANAGEMENT, LLC, FREDERICK T.

MONTESI III, FREDERICK T. MONTESI IV, JEFFREY B. PRESLEY, AND ANCONA HOLDINGS, LLC, Appellees

AND

HEALTHCARE HOLDINGS, LLC, Cross-Appellant

On Appeal from the County Court at Law No. 5 Dallas County, Texas

Trial Court Cause No. CC-17-04895-E

MEMORANDUM OPINION

Before Justices Bridges, Whitehill, and Nowell Opinion by Justice Nowell Dr. Shiva Shirvani sued Healthcare Holdings, LLC along with Celebrity

Healthcare Management, LLC, Frederick T. Montesi III (“Fred”), Frederick T. Montesi IV (“Eric”), Jeffrey B. Presley, and Ancona Holdings, LLC (collectively, “appellees”) for breach of contract.1 Following a bench trial, the trial court rendered

1 Shirvani also sued Healthcare Holdings and appellees for fraud and fraudulent inducement. She did not prevail on those claims at trial and does not raise any appellate issues related to those claims.

judgment in favor of Shirvani and against Healthcare Holdings on the breach of contract claim and awarded actual damages of $1,200,000 to Shirvani. However, the trial court also ordered Shirvani take nothing on her claims against appellees.

In two issues on appeal, Shirvani asserts (1) there is no evidence, or, alternatively, factually insufficient evidence, to support the trial court’s finding she failed to prove she had a binding contract with appellees, and (2) the trial court erred by concluding Shirvani was not entitled to recover attorney’s fees from the individual appellees on her breach of contract claim. In its cross appeal, Healthcare Holdings argues Shirvani’s breach of contract claim fails as a matter of law. We affirm the trial court’s judgment.

FACTUAL BACKGROUND

Shiva Shirvani is a chiropractor. Through various entities, Shirvani and her then-husband, Ramin Siroosian,2 owned a practice together. In April 2015, the entities owned by Shirvani and Siroosian transferred their interests in the practice to Healthcare Holdings in exchange for approximately $16 million.3 The parties executed an asset transfer agreement (“Agreement”). As part of the Agreement, Shirvani and Siroosian agreed to a non-compete/non-solicitation provision; Shirvani testified at trial that if she complied with that provision, she would receive an additional payment in April 2020. The Agreement was signed by Siroosian as

2 Siroosian is not a party to this litigation.

3 Shirvani and Siroosian held their interests in the business in numerous entities, which were the transferring parties. The names of those entities are not relevant to this appeal.

president of the entities and as a principal, Shirvani as a principal, and Fred as president of Healthcare Holdings. None of the appellees individually signed the Agreement. After the Agreement was executed, Shirvani and Siroosian each owned an interest in Healthcare Holdings.

In October 2016, Siroosian, Healthcare Holdings, and appellees sued one another in Tennessee (“Tennessee Litigation”). Bob Craddock, a lawyer in Memphis, Tennessee, testified he represented Healthcare Holdings, Celebrity Healthcare Management, Fred, Eric, and Presley in the Tennessee Litigation. His clients “sued [Siroosian] for a $450,000 clawback . . and then, Dr. Siroosian counterclaimed on various things.” Shirvani was not a party to the Tennessee Litigation.

Craddock testified that in June 2017, Carlos Cortez, a Texas lawyer, contacted him and advised that Shirvani would join the Tennessee Litigation “unless we would settle with him or buy her interests.” After hearing from Cortez, Craddock communicated with Siroosian’s lawyers about potentially settling the Tennessee Litigation. He was only interested in settlement if his clients could settle with Siroosian and Shirvani; Craddock’s clients desired to remove Siroosian and Shirvani from the Healthcare Holdings and Celebrity Healthcare Management “so that those entities could be restructured and cash could be diffused, and it didn’t do us any good to settle with one without the other.”

Craddock verbally communicated with Siroosian’s lawyers who responded with an email on June 21, 2017. The email states, in part, that Siroosian would be willing to accept a $1.2 million settlement provided some other conditions were satisfied, including Healthcare Holdings and appellees released Siroosian from future liability under the Agreement. On June 30, 2017, Siroosian’s lawyers sent two emails to Craddock. One stated: “Subject to the negotiation of mutually agreeable agreement and compliance with applicable agreements and laws, our client has authorized us to proceed with the settlement process at 1.2 million.” The second stated: “I should also add that we are not agreeing to our client getting less than Dr. Shirvani.”

Craddock testified he told Cortez that “we would settle if we could settle with both parties. . . . I had communicated to Mr. Cortez that we would pay [$]1.2 million if we could work out the other terms.” On Friday, June 30, 2017, Cortez emailed Craddock. The subject of the email is “Dr. Shiva Shirvani v. Celebrity Healthcare (CONFIDENTIAL SETTLEMENT PROPOSAL).” The body of the email states:

Pursuant to our discussion this morning, we have agreed to sell 100% of Dr. Shirvani’s interests in your client’s company in exchange for $1.2 million dollars with the understanding that the covenant not to compete stays in place and that each side pays their own attorney’s fees.

In addition, there will be a “claw-back” provision whereby if Dr.

Shirvani works as a chiropractor during the time period set out in the covenant not to compete[,] your client would be entitled to their monies back from Dr. Shirvani. This agreement is to mirror the exact terms offered to Dr. Siroosian, however, they are independent from one another and a violation from either of them would not affect the terms of the other.

Thank you for your professional courtesies in this matter and I look forward to receiving drafts of the Settlement Agreement/Buy-Out Agreement very soon.

On July 5, 2017, Craddock emailed Carlos Cortez and one of Siroosian’s lawyers. The subject of the email is “Healthcare Holdings/Settlement with Dr. Shivani [sic] and Dr. Siroosian.” The body of the email states:

This will confirm that we have reached an agreement with both Dr.

Shivani [sic] and Dr. Siroosian to settle on identical terms. My clients will purchase each of your clients’ entire membership interest and obtain a complete release of all remaining monetary obligations to your client for an amount of $1.2 million to each individual. The noncompetes will remain in full force; however, no additional funds will be paid to Dr. Siroosian or Dr. Shivani [sic] at the conclusion of the non-compete provision. The parties agree to a claw back provision in regard to the full amount paid in the event of violation of the non-

compete. Violation of one person will not trigger claw back of funds paid to the other. We intend to work toward documenting this transaction in the next few days. We understand and consent in principal to documenting same as a sale of interest, both common and preferred, by both Dr. Shivani [sic] and Dr. Siroosian, with full release of liability with respect to all matters covered by the current litigation.

This transaction is subject to suitable documentation.

Cortez responded to the July 5 email on the same day, stating:

Did you have a date certain in mind with respect to the payout?

Secondly, there is no current litigation between my client (Dr. Shirvani)

and your client so I’m not sure what we are releasing, however, it needs to be a mutual release.

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