Daniel E. Gremillion, M.D. v. Nashville Gastrointestenal Specialists, Inc.

This appeal involves a dispute over the interpretation of a buy-out provision. One of the four physicians in a medical practice retired and requested a repurchase of his stock. The physicians had previously adopted a formula for the valuation of stock in such situations, but when it came time to apply the agreement, they could not agree as to the meaning of several phrases within the agreement. The trial court heard testimony regarding the parties’ intentions as to the agreement and testimony from two accountants regarding their interpretations of the agreement. After interpreting the various phrases of the agreement, the trial court valued the physician’s stock and awarded prejudgment interest at the rate of ten percent since the date of the physician’s retirement. We reverse the trial court’s ruling as to the meaning of the agreement and affirm the trial court’s judgment as modified.