It seems a Sacramento-based health services provider has come out on the losing end of its disagreement with a national seller of the same services -- at least, in this round.

Maryland-based Passport Health, Inc. and Travel Med, Inc., which is based here in Sacramento, are locked in a business dispute. A business deal between the two went sour, so they took their concerns to court. While it seems Passport Health has gained the upper hand, Travel Med has said it will appeal.

The trouble started when the two companies entered into a franchise agreement with in 2007. The agreement gave Travel Med the right to use Passport Health's trade names and service marks in connection with the clinic it opened at 5282 Elvas Avenue. Both companies help travelers get up-to-date with vaccines, health products and other destination-specific medical services.

Per the agreement, Travel Med was supposed to pay Passport Health 7 percent of its gross revenues. But in March 2009, Travel Med stopped making payments. That was less than two years into the term of the agreement, which was supposed to run for a decade.

The president of Travel Med said her company stopped making payments because it did not approve of some internal business decisions Passport Health had made without first consulting Travel Med.

Back in February, a court held that Travel Med was liable for breaching its agreement and for trademark infringement. And earlier this month, Travel Med was ordered to pay Passport Health $437,000 in damages. Travel Med is appealing to the 9th Circuit Court of Appeals.

Source: The Sacramento Bee, "Sacramento travel clinic ordered to pay damages to national franchise in contract dispute," Denny Walsh, Sept. 24, 2011