Ambulnz Health v. Summers CA2/7
Ambulnz Health, LLC agreed to buy the assets of Americare Medservices, Inc. Both companies are in the medical transportation business. The asset purchase agreement included a provision requiring Ambulnz and Americare to arbitrate any dispute arising between the parties to the agreement. Americare’s chief executive officer and sole shareholder, Michael S. Summers, separately agreed to and signed, in his individual capacity, two specific provisions of the agreement prohibiting him from negotiating with anyone else to sell Americare’s assets and from competing with Ambulnz or soliciting Ambulnz’s employees and clients after the sale. Summers did not sign, and was not a party to, the arbitration provision.
After a dispute arose, Ambulnz filed a lawsuit asserting claims against Americare and Summers. Ambulnz filed a motion to compel both Americare and Summers to arbitrate those claims, which Summers (but not Americare) opposed.
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