PER CURIAM.
Following a bench trial, defendants Joseph Lozito, Diagnostic Unlimited, and Lozito Medical Associates, appeal from the Law Division's final judgment in the amount of $73,298, plus interest and costs, in favor of plaintiff Joel Jacowitz.
Lozito is a chiropractor, who owns and operates Diagnostic Unlimited and Lozito Medical Associates (collectively referred to as defendants, with Lozito being referred to as defendant). In October 2011, the parties entered into a verbal agreement whereby plaintiff, a cardiologist, would conduct studies of imaging scans, mostly echocardiograms and carotid artery ultrasounds, for defendants' patients. In addition to referring their patients to plaintiff, defendants would handle billing and pay the technician. Plaintiff's services were to be provided for defendants' out-of-network patients only, since doing so generated more money than billing patients with in-network providers or with Medicare insurance. There was no agreed upon compensation structure.
Approximately three months later, the parties met to discuss the lack of payment for plaintiff's services. Apparently, defendants had been using the wrong medical billing codes on the claim forms they submitted to insurance companies. Thinking the problem had been resolved, plaintiff continued to provide services to defendants' patients. However, difficulties continued. Plaintiff eventually learned that defendants were having problems billing Medicare — a surprise to plaintiff given that the arrangement was that he would only provide services for defendants' out-of-network patients. Nonetheless, plaintiff continued to perform services for defendants' patients because he "still believed that they were going to do the right thing" and pay him.
Payment problems continued, and, after unsuccessful attempts, the parties finally met in October 2012. Plaintiff again discovered that defendants were not properly billing patients' insurance companies, were receiving a low amount of reimbursement for Medicare patients, and failed to bill patients for fees not covered by their insurance carriers. Plaintiff received a $1700 check as partial payment,
Thereafter, sometime in October 2012, the parties entered into a written contract, prepared by plaintiff, that provided a prospective only fee structure for plaintiff's services. Unlike their verbal agreement, plaintiff would now be responsible for covering the costs for the technician. Plaintiff explained that the agreement was "a compromised solution so that we could continue to do this until [defendants] fixed their systems which they never did, and/or paid me the substantial amount of money for the work I had already done as part of a reconciliation that never happened."
Despite being fully paid during the first four months under the written contract, plaintiff did not receive any payments for his prior services and decided to stop servicing defendants' patients and filed suit alleging breach of contract, fraud, tortious interference, violation of the covenant of good faith and fair dealing, and sought an accounting.
At trial, plaintiff testified that prior to the October 2012 written contract, he performed approximately 235 imaging studies consisting of 157 or 158 echocardiograms, 78 carotid ultrasounds, and 2 abdominal ultrasounds for aortic aneurisms. The Medicare rates for an echocardiogram and carotid ultrasound were $273.62 and $224.34, respectively, and, the out-of-network rates were $950 and $546, respectively. Plaintiff calculated that defendants should have billed a total of $63,313.94, if the studies were all billed at Medicare rates, and $188,000, if they were billed at out-of-network rates. Plaintiff testified that he was entitled to fifty percent of the "properly" billed amounts for the tests he administered, equaling $94,000, minus $7,100 ($3,200 paid to plaintiff and $3,900 paid to the technician), for a total of $86,900.
Defendant testified there was no agreement that plaintiff would be compensated based on billed amounts because it would be more accurate to base plaintiff's compensation on collected amounts. Defendant also asserted that there was no agreement to pay plaintiff fifty percent of the amounts collected. Plaintiff testified that defendants presented him with a one-third compensation arrangement for bills actually collected.
Approximately a month after the two-day trial, the judge rendered his oral decision. The judge found that the parties had a "meeting of the minds" that plaintiff would do carotid ultrasounds, echocardiograms, as well as abdominal and aortal screenings, for out-of-network patients because they generated much more compensation than for in-network patients. The judge found that defendants intentionally misled plaintiff by sending him in-network and Medicare patients as well as claiming they were familiar with the out-of-network billing. The judge also determined that defendants agreed to, but failed to, collect the difference between the amount insurance carriers paid for in-network patients and the balance owed by the patient, as well as failed to collect deductibles for both in-network and Medicare patients.
In finding that defendants breached the agreement and plaintiff was entitled to compensation, the court stated:
The court also found defendants to be "incredibly incompetent in billing":
The court acknowledged that it was "not a simple task" to determine plaintiff's damages because "[t]he vast majority of the problems ar[ose] through the defendant[s'] failure to keep billing records" and "its failure to even bill for services rendered." Nonetheless, the court found plaintiff's testimony to be more credible as to what percentage was going to be paid:
Accordingly, the court found that fifty percent of the amount billed was a "fair and reasonable amount" for plaintiff's compensation.
The court awarded damages to plaintiff based on the billings by explaining:
While recognizing that the percentages due from patients' deductibles were not collected, the trial judge made no further deductions to account for this fact, explaining that his calculations are not based on the higher bills purported by plaintiff — almost a $200,000 increase. The court further explained:
The court then calculated fifty percent of $162,996, equaling $81,498, and deducted $8,200
Before us, defendants challenge the trial court's findings on liability and damages. Our standard of review of the trial court's determinations following a non-jury trial is a limited one.
However, we owe no deference to the trial court's "interpretation of the law and the legal consequences that flow from established facts."
Applying these principles, we conclude there is no reason to disturb the trial court's judgment, which is supported by substantial credible evidence in the record. We therefore affirm substantially for the reasons the judge expressed in his oral opinion. We add the following comments.
Defendants contend that there was no enforceable contract as the parties never had a "meeting of the minds," but rather an "agreement to agree" to specific terms in the future. This contention is without merit.
"A contract arises from offer and acceptance, and must be sufficiently definite `that the performance to be rendered by each party can be ascertained with reasonable certainty.'"
"A contracting party is bound by the apparent intention he or she outwardly manifests to the other party. It is immaterial that he or she has a different, secret intention from that outwardly manifested."
However, courts generally find that an agreement is unenforceable when the parties do not agree to one or more essential terms.
While it is undisputed that the parties had no written agreement prior to October 2012, and never agreed to a specific compensation structure under the oral agreement, the evidence supports the trial judge's finding that the parties entered into an agreement whereby plaintiff would perform certain services for defendants' patients for compensation that would be determined at a later time. Plaintiff's performance under the parties' oral agreement was evidenced by defendant's testimony that plaintiff provided the requested services to defendants' patients pursuant to their agreement. In fact, when asked if there was a specific agreement for plaintiff's compensation, defendant stated, "[i]t was specific for [plaintiff to be] compensated. It was specific for his tech[nician] to be compensated."
Moreover, defendants' conduct in tendering two checks to plaintiff in the sum of $3,200 for services performed prior to entering into a written contract in October 2012, belies defendants' contention that there was only an "agreement to agree." Defendants' "partial payment" notation on a check payable to plaintiff further underscores defendants' acknowledgment that plaintiff was entitled to compensation. Therefore, we conclude there was no error in the trial judge's finding that there was a "meeting of the minds," or an outward manifestation of intent through words and conduct to pay plaintiff for services performed, despite not specifying the parties' failure to discuss the compensation rate.
Defendants contend that plaintiff failed to adequately prove the judgment amount awarded him by the trial court. Specifically, he argues that because there was no agreement between the parties specifying the cost for the tests performed on patients throughout September 2011 to October 2012, the plaintiff was required pursuant to
As for plaintiff's factual allegations, defendants argue that the trial judge incorrectly determined that defendants made material misrepresentations to plaintiff. Defendants contend that the record does not support plaintiff's allegations that: 1) defendants misrepresented their ability to competently bill for plaintiff's services; 2) defendants failed to provide plaintiff with a billing reconciliation; 3) defendants failed to disclose that Medicare had paid for testing services after the parties agreed to bill through a separate entity; and 4) defendants failed to bill patients for amounts not reimbursed by insurance carriers, against plaintiff's expectations. Lastly, defendants assert that the trial court's calculation of damages is speculative and must be reversed.
First, we do not find fault with the trial court's decision to consider plaintiff's testimony on the issue of damages. Under our standard of review, we defer to a trial court's evidentiary ruling and will not reverse unless it was "so wide off the mark that a manifest denial of justice resulted[.]"
Defendants' reliance on
The trial court did not abuse its discretion by finding that as the finder of fact it did not need the assistance of an expert providing "scientific, technical, or specialized knowledge" under
Likewise, defendants' reliance on the
Finally, we address defendants' contention that the trial judge's damages award was speculative, without any factual basis, and must be reversed. Defendants argue that the trial court's finding that plaintiff was entitled to fifty percent of the billing for plaintiff's services is not supported by the record given that both parties denied agreeing to a fifty percent compensation structure. Defendants further argue that plaintiff failed to prove damages with specificity, instead relying on various figures he arrived at based on numerous calculation methods, most of which were inapplicable to the out-of-network billing agreed to by the parties.
In general, the purpose of compensatory damages is to compensate a plaintiff for his or her actual loss.
A plaintiff has the burden of proving his or her damages.
Applying these standards, we defer to the trial court's determinations, which are supported by substantial credible evidence in the record. As a cardiologist, plaintiff was familiar with the going rates for imaging scans that he rendered for defendants' in-network, out-of-network, and Medicare patients. His testimony therefore provided the requisite foundation for a lay opinion regarding the value of his services sufficient to enable the trial judge to make a fair and reasonable estimate of the damages. In assessing the parties' testimony regarding damages, the court found plaintiff credible and that defendant made misrepresentations.
The trial judge further rejected plaintiff's various calculations to support his compensation demand. Instead, he determined that, largely due to defendants' failure to maintain and produce complete and accurate billing records, it was fair to award plaintiff fifty percent of the amount defendants billed for plaintiff's services, plus the amount owed for the 164 missing studies, minus prior payments made to plaintiff and his technician by defendants. As noted, damages need not be exact.
Affirmed.