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BHSF SERVICES CORPORATION, I IN THE COURT OF COMMON PLEAS OF
Plaintiff I CUMBERLAND COUNTY, PENNSYLVANIA
I
v I CIVIL ACTION - LAW
I
FIRST AID AND SAFETY PATROL I 94- CIVIL TERM
EMS, INC. , I
Defendant I
COMPLAINT
AND NOW, comes the Plaintiff, EHSF Services Corporation, by and
through their attorneys, Broujos, Gilroy & Houston, P.C., who aver
as follows:
I
The Plaintiff is EHSF Services Corporation, a corporation duly
organized in accordance with the laws of the Commonwealth of
Pennsylvania, with its principal place of business being located at
503 Bridge Street, New Cumberland, Cumberland County, Pennsylvania.
2
The Defendant is First Aid and Safety Patrol EMS, Inc., a
corporation duly organized under the laws of the Commonwealth of
Pennsylvania, or an unincorporated association, with its principal
place of business b9ing located at 245 South 11th Street, Lebanon,
Lebanon County, Pennsylvania.
3
The Plaintiff is in ths business of providing financial management
services, including but not limited to billing .el'vice., fol'
providel's of Emergency Medical Services.
4
The Defendant i. a provider of Emergency Medical Service..
S
On or about .June 6, 1994, Plaintiff and Defendant entered into an
agreement whereby Plaintiff would perform financial management
.ervice. for Defendant in exchange for a fee to be paid by the
Defendant. Attached hereto and marked as Exhibit A i. a copy of
.aid Agreement, which is incorporated herein by reference thereto
and hereinafter referred to as "the Agreement".
6
The Agreement provided that trip reports for ambulance .ervice.
rendered by Defendant were to be provided to the Plaintiff and that
Plaintiff would provide services including, but not limited to,
preparing billing invoices from said trip reports received from the
Defendant.
7
Paragraph H and Appendix II of the Agreement provided that during
the initial twelve (12) month period, being June 1, 1994 to May 31,
1995, that the Agreement could not be terminated by tiither party.
8
Pursuant to the terms of the Agreement, Defendant did provide
Plaintiff with trip report. generated by the Defendant for the
period up to and including July 1994.
9
On or about August 23, 1994, Plaintiff received information that
led Plaintiff to believe that another entity was providing
financial management and billing services for the Defendant.
10
On or about August 23, 1994, Plaintiff contacted the Defendant, to
ascertain whether Defendant was going to be honoring the terms of
the Agreem&nt and utilize Plaintiff for the contracted for
services, and Plaintiff was advised by the Defendant that
Defendant was in fact not going to be honoring the Agreement and
that it had contracted with another entity for billing services.
COUNT I - BREACH or CONTRACT
11
Paragraphs 1 through 11 are incorporated herein by reference
thereto.
12
The Defendant was to provide, as per the Agreement, its trip
reports for ambulance services to the Plaintiff for processing for
the period of June 1, 1994 until May 31, 1995.
13
Defendant has breached the Agreement by contracting with another
entity to process its trip reports.
.....,. ....,...
I ,
SHERIFF'S RETURN
COMMONWEALTH OF PENNSYLVANIA
COUNTY OF CUMBERLAND
EHSF Services Corporation
In the Court of Common Pleas of
Cumberland County, Pennsylvnaia
No.94-5435 Civil Term
Complaint in Civil Action Law
and Notice
VS
First Aid and Safety Patrol
EMS, Inc.
R. THOMAS KLINE, Sheriff. who being duly sworn according to law,
says, that he made diligent sea:ch and inquiry for the within named
defendant. to wit:
First Aid and Safety Patrol EMS. Inc.
them
in his bailiwick. He therefore
but w~s unable to locate
deputized the sheriff of
Lebanon
County. Pennsylvania.
to serve the within Complaint in Civil Action Law and Notice
On
September 29. 1994
, this office was in receipt of
the attached return from
Lebanon
County. Pennsylvania.
Sheriff's Costs:
Docketing 14.00
Out of County 5.00
Surcharge 2.00
Lebanon County 16.60
$ 37.60 pd. by
Sworn and subscribed to before me
So answers:
J. THOMAS KLINE. Sheriff
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EllSF Serv ices Corp.)l~ ion
First Aid and Safety Patrol EMS, Inc,
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94-5435 Civil Term
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7. Admitted in part. Denied in part. It i. admitted that
paragraph H and Appendix II provide cortain language and were
agreed to between plaintift and Detendant, a. .et forth in the
Agreement, Exhibit "A". It is denied that Defendant wa. required
to have plaintitt perform any or all financial management .ervice.
between June 1, 1994, and May 31, 1995. It is denied that
Defendant haa terminated the Agreement, Exhibit "A".
8. Admitted in part. Denied in part. It is admitted that
beginning on about June 6, 1994, and continuing tor some period of
time thereatter, Detendant did provide to Plaintitt certain trip
report. tor ambulance services rendered by Detendant. It ia denied
that Detendant was required to provide theee trip report. for
ambulance services rendered or any trip reports tor ambulance
.ervice. rendered to Plaintitt.
9. Denied. Atter reasonable investigation, Detendant ie
without knowledge or intormation sutticient to torm a beliet ae to
the truth ot the averment.
10. Admitted in part. Denied in part. It ie admitted that
on or about Auguet 23, 1994, Plaintitt contacted Defendant and
que.tioned Detendant about whether Detendant would be providing
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additional trip report. tor ambulance .ervice. rendered by
Detendent to Plaintitt in accordance with the Agreement, Exhibit
"A". It i. denied that Detendant advi.ed Plaintitt that Detendant
would not honor the Agreement, Exhibit "A". It i. admitted that
Detendant did advi.e Plaintitt that Detendant had contracted with
another entity to provide billing .ervices tor Defendant. Further,
Detendant alleges that Detendant was not required to provide any
trip reports tor ambulance services rendered by Detendant to
Plaintitt, and that Detendant has, at all times, honored the
Agreement entered into between Plaintitf and Defendant, Exhibit
"A", to the Complaint. Further, Detendant believe. and avers that
Plaintitf ha. pertormed certain financial management and billing
.ervice. on behalf of Defendant, and has received payment. a. a
re.ult ot tho.e .ervices, but has failed and refu.ed and has
wrongtully withheld making payments over to Defendant.
COUNT I - BREACH OF CONTRACT
11. Detendant incorporates herein, by reference thereto it.
ANSWER to paragraph. 1 through lOot the COMPLAINT.
12. Denied. The Agreement between Plaintitt and Detendant,
Exhibit "A" to the Complaint, provide. tor Detendant to provide to
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Plaintiff trip raport. for ambulance .arvice. rendered by Defendant
on a .chedule to be determined solely by Defendant, and not
requiring any minimum number of trip reports to be provided by
Defendant to Plaintiff at any time. (see Exhibit "A", page 5,
Appendix I).
13. Denied. The Agreement between Plaintiff and Oefendant,
Exhibit "A" to the Complaint, is not an agreement that requires
Defendant to exclusively have the financial management service or
billing .ervice for its trip reports performed by Plaintiff, but
rather Defendant may perform such services on its own 01' may enter
into agreement. or contracts with any other ontity to perform .uch
.ervice.. It is denied that Defendant has breached it. Agree.ent
with Plaintiff, Exhibit "A" to the Complaint, by contracting with
another entity to process trip reports for ambulance service.
rendered by Defendant.
14. Denied. Defendant believes and avers that Plaintiff has
not at all time. abided by the terms and Obligation. of the
Agreement, Exhibit "A", including both at the beginning of the teI'1l
of the Agree.ent .s .et forth in Exhibit "A", and through to and
including the present time. Further, Defendant believe. and aver.
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Defendant from performing on it. own behalf the .ervice. outlined
in Exhibit "A" which Plaintiff has agreed to perform on behalf of
Defendant, nor do.. Exhibit "A" prohibit, forbid, or limit
Defen~ant from entering into an agreement with one or more other
entities to perform the service. outlined in Exhibit "A" which
Plaintiff has agreed to perform for Defendant. Exhibit "A" i. not
an exclu.ive agreement.
18. The Agreement entered into between Plaintiff and
Defendant, Exhibit "A", requires Defendant to provide Plaintiff
n. . . with trip reports on a schedule to be determined by . . .n
Defendant, which Agreement allows Defendant to provide no trip
report. to Plaintiff should Defendant choose to do so.
19. At all times relevant hereto, in matters inVOlving
di.cu..ion. and negotiations between Plaintiff and Defendant
involved with Defendant entering into the Agreement, Exhibit "An,
with Plaintiff and in all matters involving the entering into of
the Agreement, Exhibit "A", with Defendant, for Plaintiff to
perform certain financial management services on behalf of
Defendant, Plaintiff was represented by Mary Keiter, Plaintiff'.
then General Manager.
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20. At all times relevant hereto, Plaintiff's then General
Manager Mary Keiter was acting within the scope of her employment
and within the course of her duties as General Manager for
PlaintiU.
21. At all times relevant hereto, Plaintiff's then General
Manager Mary Keiter was authorized by Plaintiff or impliedly
authorized on behalf of Plaintiff to discuss and negotiate on
behalf of Plaintiff with Defendant and to enter into an Agreement,
Exhibit "A", between Defendant and Plaintiff for Plaintiff to
provide certain financial management services for Defendant.
22. During the course of the discussion. and negotiations
between Plaintiff, through its then General Manager Mary Keiter,
and Defendant, Mary Keiter informed Defendant that the written
Agreement Plaintiff would require Defendant to enter into with
Plaintiff, Exhibit "A", would not be a contract including any
exclu.ivity provision in thet Defendant would not be required by
Plaintiff to send any or all of the trip reports for a.bulance
.ervices rendered by Defendant to Plaintiff, for financial
.anage.ent services and collection, but rather Defendant could
perform such service. it.elf or could contract with other entities
to provide those .ame .ervice. for Defendant.
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:013. Durinq the course of the diacu.sion. and the neqotiation.
between plaintiff, throuqh its then General Manaqer Mary Keiter and
D.f.ndant, Defendant told Mary Keiter of it. concern about the
provi.ion of Exhibit "A", that the Aqreem.nt could not b.
t.rminat.d by either party durinq the initial twelve (12) month
p.riod of the Aqreement, Exhibit "A".
24. In response to this concern expressed by Defendant,
Plaintiff, throuqh its then General Manaqer Mary Keit.r,
r.pre.ented and warranted to Defendant that the Aqreement, Exhibit
"A", did not require Defendant to send any or all of it. trip
report. for ambulance services rendered by Defendant to Plaintiff,
and did not require Defendant to have Plaintiff p4lrform any
financial manaqement services as set forth in the Aqreement,
Exhibit "A", on behalf of Defendant. In further re.pon.., Mary
K.iter told Defendant that if Defendant, for any rea.on, became
unhappy or dissatisfied with Plaintiff's services, Defendant could
Itop Isndinq trip reports for ambulance services rendered by
D.fendant to Plaintiff and could refuse to send additional trip
r.port. for ambulance services rendered by Defendant to Plaintiff,
and that .uch actions by Defendant would not violate or terminate
the Aqr..m.nt, Exhibit "A". Further, in response to this conc.rn
.xpr....d by Defendant, Mary Keiter warranted and repr...nt.d to
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Defendant that Plaintiff as.umed that it. client., including
Defendant, would not be unhappy or di..atiefied with Plaintiff'.
.ervice., but if Defendant did become unhappy or dissati.fied with
Plaintiff'. .ervice. and Defendant cho.e not to provide additional
trip report. for ambulance .ervices rendered by Defendant to
plaintiff, Plaintiff would not pursue that decision of Detendant by
any means, including but not necessarily limited to any legal
action.
25. During the course of the discussions and negotiations
between Plaintitt, through its then General Manager Mary Reiter,
and Detendant, Detendant explained to Mary Reiter its sub.tantial
daily overhead costs and that Detendant needed, in order to meet
it. tinancial requirements and obligations, to receive payments
trom Plaintiff every two (2) weeks (every fourteen (14) days).
26. In response to this concern expressed by Defendant,
Plaintiff, through its then General Manager Mary Reiter', agreed
that Plaintiff would send to Defendant, every two (2) week., a
check tor payments received by Plaintift on behalf ot Detendants,
a. .oon ae Plaintiff began performing financial management service.
on behalt of Defendant.
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27. In reliance upon these described material rspresentations
and warranties of Plaintiff, made by and throuqh its then General
Manaqer Mary Keiter, to Defendant, Defendant then executed the
written Aqreement, Exhibit "A", on or about June 6, 1994, believinq
and understandinq that based upon the described material
representations and warranties made by Mary Keiter, an aqreement
and meetinq of the minds had been reached between Plaintiff and
Defendant.
28. At the time that Plaintiff, throuqh its then General
Manaqer Mary Keiter, was discu8sinq and neqotiatinq with Defendant
enterinq into the Aqreement, and at the time the Aqreement, Exhibit
"A", was entered into between Plaintiff and Defendant, Mary Keiter
had be.n employed by Plaintiff for approximately thirteen (13)
years, and for the previous approximately ten (10) years had been
involved in discussinq, neqotiatinq, and enterinq into contracts
for financial management services between Plaintiff and customers.
29. The representations and warranties made by Mary Keiter,
then General Manager of Plaintiff, to Defendant during the course
of discussions and negotiations between Plaintiff and Defendant,
and which were a part of the Agreement, Exhibit "A", entered into
between Plaintiff and Defendant, and which are referred to herein
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at paragraph. 22 through 26 above, wen repre.entation. and
warranties that Mary Keiter, a. then General Manager of Plaintiff,
would make a. a cour.. of conduct and aa atandard repre.entation.
and warranties when diBcussing and negotiating a financial .ervice.
contract to be entered into between Plaintiff and a new cu.tomer.
30. The representations and warranties made by Mary Keiter,
then General Manager of Plaintiff, to Defendant during the cour.e
of di.cus.ions and negotiations with Defendant, and which are
referred to in paragraphs 22 thrO\lgh 26 above, were repre.entations
and warranties made by Mary Keiter, then General Manager of
Plaintiff, with the express or implied consent or authority of
Plaintiff, and were made in order to induce and convince Defendant
to enter into the Agreement, Exhibit "A", with Plaintiff.
31. All trip reports for ambulance services rendered by
Defendant that Defendant forwarded to Plaintiff were forwarded by
Defendant in reliance upon the Agreement, Exhibit "A", and the
de.cribed material representations and warranties made to Defendant
by Mary Keiter, then General Manager of Plaintiff.
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36. On July 25, 1994, Defendant phy.ically went to
Plaintiff'. offic.. and r.ceived from Plaintiff a payment of
Fifteen Thou.and Dollar. ($15,000.00), a. Plaintiff had not
forwarded to D.f.ndant paym.nt in accordance with the every (2)
week paym.nt agreement and which paym.nt Defendant would not have
rec.ived prior to August 8, 1994, had Defendant not trav.l.d to
Plaintiff'. offices.
37. On August 8, 1994, Defendant received from Plaintiff
paym.nt in the amount of Seventeen Thousand Two Hundred Eleven
Dollar. Tw.lve Cents ($17,211.12).
38. Defendant did not receive a payment from Plaintiff on or
by Augu.t 22, 1994.
39. Defendant did receive a payment from Plaintiff on
S.ptember 2, 1994, in the amount of Fifty-Two Thousand Eight
Hundred Thirteen Dollar. Ninety-Two Cent. ($52,813.92).
40. D.fendant has not received any payments from Plaintiff
.ince the payment received on September 2, 1994, d.spite Plaintiff
having trip reports for ambulance services rendered by Defendant in
it. po.....ion and for which tinancial management .ervice. are to
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be provided on behalt ot Detendant in the total amount ot One
Hundred Thirty-Seven Thousand Nine Hundred Thirty-Nine Dollar.
Three cent. ($137,939.03), which a. ot Auqu_t 27, 1994, were
de.cribed a. tollow_: current, Sixty-Four Thou.and Six Hundred
Forty-Five Dollar_ Seventeen cent. ($64,645.17); over thirty (30)
day., Eleven Thousand Three Hundred Seventy-Nine Dollar. sixty-
Three cent_ ($11,379.63); over sixty (60) days, Sixty-One Thou.and
Nine Hundred Fourteen Dollars Twenty-Two cent_ ($61,914.22).
41. The action of Defendant in not sendinq trip report. to
Plaintiff after those in the possession ot Plaintitf as ot Auqu_t
27, 1994, wa_ in reliance by Defendant upon the Agreement, Exhibit
"A", and in reliance upon the representations and warranties made
to Detendant by Plaintiff through its then General Manaqer Mary
Keiter.
42. Plaintiff has waived or impliedly waived any r1qht or
privileqe it may have had to brinq this action or to collect any
damaqe. from Defendant.
43. Plaintiff is estopped or equitably estopped from brinqinq
or pur_uinq thi_ action or from collectinq any damaqe_ fro.
Detendant.
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COUNTERCLAIM
COUNT I
46. Defendant incorporate. herein by reference thereto it.
Answer. to the Complaint, at paragraph. 1 through 15, a. well..
it. New Matter, paragraphs 16 through 45.
47. From about June 6, 1994, through to the pre.ent time,
Plaintiff has remained in possession of various trip reports for
ambulance .ervices rendered by Defendant and forwarded by Defendant
to Plaintiff pur.uant to the Agreement, Exhibit "A", and Defendant
believe. and aver. that Plaintiff has collected certain payments
arising out of the.e various trip reports and out of which paymente
are due from Plaintiff over to Defendant.
48. Other than the payments made by Plaintiff to Defendant
and de.cribed earlier herein, Plaintiff has made no other payments
to Defendant pursuant to the Agreement, Exhibit "A".
49. All writings or records involving financial manage.ent
eervic.. provided by Plaintiff involving these trip report., ..
well a. all payment. received by Plaintiff and arising out of the.e
trip report., are in Plaintiff's .ole po..e.sion and Defendant h..
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no writing. or records and no knowledge or information about
payJII.nta r.ceived by Plaintiff or about payment. which D.fendant i.
.ntitl.d to receive from Plaintiff.
50. Defendant believe. and av.r. that the writing. and.
record., including payments-received records, in the po.....ion of
Plaintiff will disclose, consistent with the term. of the
Agreem.nt, Exhibit "A", those payment. to which Def.ndant i.
entitl.d, and although Defendant has demanded an accounting,
Plaintiff has refused and continues to refuse to account to
Defendant.
51. Defendant avers that Plaintiff continues to refu.. and
neglects to pay over to Defendant those funds to which Defendant i.
entitl.d consistent with the Agreement, Exhibit "A".
52. Defendant requests this Honorable Court to require
Plaintiff to furnish to Defendant a true and proper account
involving all trip reports for ambulance services rendered by
Def.ndant and forwarded by Defendant to Plaintiff pur.uant to the
Agr..m.nt, Exhibit "A", and to award jUdCJlllent in favor of Defendant
and again.t Plaintiff for the balancs shown to be due to Defendant
trom Plaintiff by rea.on of such account, which amount Defendant
~-.....,.'-
8HSP S8RVICBS CORPORATION, . IN THB COURT OF COMMON PLBAS OF
Plaintiff . CUMBBRLAND COUNTY, PBNNSYLVANIA
.
v . CIVIL ACTION - LAW
.
PIRST AID AND SAFBTY PATROL . 94-5435 CIVIL TBRM
8MB, INC., ,
Defendant .
PRAIleIP.
TO THB PROTHONOTARY,
Pleaee diemi.. Plaintiff' e action againet the Defendant, with
prejudice.
.'
.//
Date. S'~I), 14) 111}-
,
L/ r etophe . ueton, Bequ re
Attorney for Pla ntiff
BroujoB, Gilroy' Houston, P.C.
4 North Hanover Street
Carlisle, PA 11013
111 - 243-4514