On Wednesday, a case was filed in the Kings County, New York Supreme Court by Samson MCA LLC against IJNA Home Health Services. The case stemmed from a revenue purchase agreement between the two parties.
According to the complaint, on April 12, the parties entered into a contract where the plaintiff would purchase a set of future receivables from the defendant for $4000. The purchased receivables were given a set contractual value of $5,800, which would be transmitted to the plaintiff directly.
This purchase arrangement reportedly allowed the defendant, a home health company, to have operating funds immediately, without needing to wait for amounts to be slowly paid by insurance, patients, and other sources which could have an unpredictable payment schedule. The contract also provided for certain fees if the contract was breached with a default fee of $2,500 and certain processing fees.
As explained by the plaintiff, the defendant home health company only made a payment of $1,600, leaving the remaining agreed payment of $4,200.00 plus the fees unpaid. This allegedly resulted in an owed amount of $7,100, which is more than the agreed upon value of the receivables that were originally purchased.
The plaintiff filed a claim of breach of contract as well as breach of personal guarantee by the guarantor for the contract. The plaintiff is represented by the law firm of Berkovitch & Bouskila.
