Medical Billing Solutions, Inc. v. Diabetic Medserv, Inc.

A provider of health care services (Diabetic) entered into negotiations with a medical accounting and billing service (Medical) to handle its office accounts. After doing business for a period of time, they disputed their relative obligations and ultimately Diabetic sued Medical and Medical filed a counterclaim. On January 31, 1997 Medical served Diabetic with a demand for judgment. The demand stated $12,000.00 as a net judgment “as inclusive of costs and attorney’s fees.” The demand further stated that upon acceptance the parties would dismiss all pending claims and counterclaims and allow…