Pak

FACTS

Pak and Rassman, both medical doctors, co-owned and jointly operated New Hair Institute Medical Group (NHI), which provided hair- transplant services. Their relationship eventually deteriorated, with Pak claiming Rassman had become incapacitated and was not generating enough revenue. He decided to separate from Rassman and start a new business. Pak then took steps to exclude Rassman from the business. He informed staff that Rassman was no longer allowed in the office, hired security guards to enforce the directive, stopped paying Rassman’s salary, and purported to terminate his employment. He withdrew $600,000 from NHI’s bank account without Rassman’s approval and used the money for personal purposes. He formed a new entity and assumed control of NHI’s assets. And he filed a complaint against Rassman with the state medical board, which found the allegations unsupported. Pak sued Rassman for breach of fiduciary duty and related claims. Rassman filed a cross-complaint against Pak and NHI, alleging conversion, breach of fiduciary duty, wrongful termination, and other claims. While the action was pending, Rassman filed an administrative complaint with the Department of Fair…