Opinion ID: 2640812
Heading Depth: 2
Heading Rank: 2

Heading: Cotter and Erwin entered into a consulting agreement

Text: ¶ 6 During 1997 and 1998, many of Cotter's SHC facilities in Texas and California were experiencing operational problems due to inefficient and irresponsible operators. CP at 31, FOF 18. Cotter turned to Erwin, among others, for assistance with these problems. Id. On February 9, 1999, Erwin and Cotter signed a document entitled Consultant Agreement (hereinafter referred to as Agreement) at Cotter's home in California. [4] CP at 31, FOF 19. The Agreement, drafted by Erwin, was consistent with other agreements he had used. ¶ 7 In the Agreement, Cotter granted Erwin a nine month exclusive engagement to represent and right to sell or lease designated Cotter SHC facilities. Ex. 8, ¶ 4. Cotter agreed to pay Erwin a fee of 14 percent of the first year's annual lease payment for any new operational lease on a designated SHC facility. Ex. 8, ¶¶ 3, 4; see also CP at 33, FOF 32. The Agreement automatically extended to cover a deferred closing of any business opportunity or Buyer presented to Cotter during its original nine month term. Ex. 8, ¶ 3. In the event that Cotter canceled the Agreement, Erwin was entitled to an entire fee for any lease of a designated facility made to a registered buyer within 36 months following the cancellation. [5] Ex. 8, ¶ 21. ¶ 8 The Agreement expressly stated that it applied to properties identified in Addendum `A,' Exhibit 8, ¶ 3, and additionally contemplated that properties could be added. CP at 33, FOF 30; see also Ex. 8, ¶ 18. When Cotter and Erwin signed the Agreement, Addendum A was not filled in as to any specific properties. CP at 31, FOF 21. However, they and Sleeth, prior to, during, and immediately after the meeting of February 9, 1999, discussed the properties which Cotter was interested in working on, which included facilities in Texas, California, Oklahoma, and possibly others. CP at 31, FOF 21. Shortly thereafter, Addendum A was completed, listing several Texas SHC facilities. [6] CP at 32, FOF 22. Cotter later gave the signal, through Sleeth, that Erwin should move ahead with work on the four California SHC facilities as well. CP at 33, FOF 31.