Nursing Home Sued Over Breach of Contract Regarding COVID-19 Testing Expenses

On Monday, plaintiff Quest Diagnostics Incorporated filed suit against The Courtyards LLC in the Western District of New York. The complaint comes as a result of the defendant’s alleged failure to pay the plaintiff for COVID-19 testing equipment despite being contractually obligated to do so.

Quest Diagnostics “offers access to diagnostic testing services for a wide variety of conditions, including cancer, cardiovascular disease, infectious disease, neurological disorders, and COVID-19,” per its complaint.

The complaint recounted that, in an attempt to counteract nationwide shortages, the Department of Health (DOH) entered into a contract with the plaintiff in mid-2020 where the plaintiff agreed to provide COVID-19 testing equipment to nursing home personnel at no more than $100 per test. The method by which the plaintiff would be paid by the nursing homes was to be determined by the plaintiff.

The plaintiff then entered into an agreement with the defendant, a nursing home, where the plaintiff would provide them with COVID-19 testing at no more than $100 per test. Once the agreement was set, the plaintiff began fulfilling their contractual obligations and “provided more than a thousand COVID-19 PCR tests for personnel and staff at Defendant’s Facility.” The defendant accepted all of the COVID-19 tests they were given.

At the end of each month, the plaintiff would invoice the defendant for the equipment, charging $100 per test as determined by both the Department of Health contract and the agreement between the plaintiff and the defendant.

Up to the date that the complaint was filed, the defendant has failed to pay any of the invoices sent to them by the plaintiff “without a reasonable or proper justification.”

The complaint cites eight claims for relief, including breach of contract, breach of implied contract, breach of the DOH contract, account stated, costs and attorney’s fees, unjust enrichment, quantum merit, and money had and received (FEMA reimbursement). The plaintiff is seeking damages of no less than $117,600.00, attorney’s fees, and any other relief deemed proper by the Court.

The plaintiff is represented by The Glennon Law Firm P.C.