Appellate court ruling widens scope of NY fee-splitting law to include earnouts -
The decision overturned a lower court ruling relating to the sale of part of a dental practice in 2015. The plaintiff agreed to sell certain assets to another dental practice for $250,000. Under the asset purchase agreement (APA), the defendant was to pay a fixed sum of $50,000, with the remainder of the purchase price parsed out in monthly installments based on:
..A percentage of the future monthly revenue generated by the plaintiff’s practice; and
..A percentage of the future revenue from the defendant’s practice that wasn’t part of the transaction, if certain conditions were met.
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