Contractual relationships and the relative obligations and rights that come with them can be difficult to decipher. There are so many clauses, provisions, and sections buried in these agreements that understanding the importance of certain matters can get lost in translation. In order to truly comprehend the exact obligations and rights that an individual or corporation has under an agreement, it is important to have the best attorneys drafting and reviewing the agreement. After all, these clauses are what govern the course of the parties’ professional relationship.
Case in point, Christus Health Southwestern Louisiana (“Christus”) planned to build a Senior Living Community in Lake Charles, Louisiana. It entered into a Development Services Agreement (“DSA”) with Greenbrier Development Co., L.L.C. (“Greenbrier”) in May 2007. Under the agreement Greenbrier would assist Christus with preparing budgets, providing marketing advice, and performing other development services.
Under the terms of the DSA, Christus was required to pay Greenbrier a development fee of $1.49 million, which was payable in installments throughout different phases of the project. There was no dispute as to Christus paying the initial 20% of the payment. The next 35% of the payment was due upon commencement of the construction. Certain sections of the DSA governed the parties’ respective rights and obligations for payment and termination of their professional relationship. The pertinent sections are summarized as follows: