Citations
- 330 F. Supp. 2d 383
Full opinion text
OPINION AND ORDER
LEISURE, District Judge.
TABLE OF CONTENTS
PAGE
Findings of Fact.390
I. The Parties.391
II. The Contract. N CO
A. The HCP Contract. CO
B. The Rider. CO
C. The Guaranties. W OO
D. Changes in the Contractual Relationship . lO CO
1. The July Amendment. lO CO
2. The September Early Termination Amendment IO CO
3. The Security Agreement. CD CO
4. The September Factoring Fees Amendment CO
5. The Letter Agreement. 0 CO
III.The Performance. Oí
A. The Parties’ Performance Prior to September 1992 . Oí
1. Sale of Accounts . Oí
2. Payment for Accounts. Oí
3. Collection of Accounts . Oí
4. Record Keeping of Accounts. Oí
B. The Parties’ Performance After September 1992 Oí
1. Sale of Accounts . Oí
2. Payment for Accounts. Oí
3. Collection of Accounts .
4. Record Keeping of Accounts. cTj
C. Hunt Health’s Distributions to Investors . iY>
IV. The Termination.401
V. The Performance Posh-Termination.402
A. Aftermath of the Termination.402
B. Hunt Health’s Attempt to Buy Back Accounts.402
C. Hunt Health’s Sale of Assets to Esperanza.403
D. Payments Made After February 26, 1993, on Accounts Sold to Towers.403
E. Towers’Bankruptcy.403
Conclusions of Law.403
I. Plaintiffs Breach of Contract Claim. 4^ O CO
A. What Is Hunt Health’s Indebtedness to Towers ? 4^ O 4^
1. The $910,870 Advance Payments from Hunt Health to Towers as of February 26,1998 . 4^. O 4^
a. Norir-Reimbnrsable Accounts. 4^ O 07
b. Rejected Accounts. 4^ O 00
i. Accounts Coded as “Appealed”. 4^ O 00
ii. Accounts with no Response Within 60 or 90 Days of Treatment. O •ctf
iii. Paid Accounts. r*H -ñH
e. Advance Rate. t — t -ñF
2. Factoring Fees. r*“i "ÑF
B. Does Hunt Health’s Early Termination Entitle Plaintiff to Early Termination Damages ?. (NJ
C. Did Hunt Health Materially Breach? .
1. Hunt Health’s Sale ofNoru-Reimbursable Accounts and Record Keeping. 4^ 4^
2. Hunt Health’s Distributions to Investors. 4^ Cn
3. Hunt Health’s Retention of Proceeds on Accounts It Had Sold to Towers.
4. Hunt Health’s Failure to Pay Liquidated Damages Upon Termination. 00 T — I ^
5. Hunt Health’s Sale of Assets to Esperanza. CO 1 — I ^
D. Did Totvers Breach Its Collection Obligation?. 00 r — i ^
E. What Effect Did Hunt Health’s and Towers’ Respective Breaches Have on the Parties’ Performance Obligations.
1. Plaintiff Satisfies the Elements of Breach of Contract.
a. Plaintiff’s Performance .
b. Breach by the Defendants.
c. Damages.
i. Advances on Non-Reimbursable and Rejected Accounts
ii. Factoring Fees.
iii. Early Termination Damages.
2. None of Defendants’ Defenses Apply To Bar Plaintiffs Recovery for Breach of Contract c