Pa. company files breach of contract suit against Kentucky rehab facility

By Jon Campisi | Oct 24, 2012

A Kentucky-based rehab facility has been hit with a breach of contract complaint initiated

by a suburban Philadelphia company over claims that the defendant has failed to fully compensate the plaintiff for work performed in accordance with a written agreement.

Healthcare Services Group Inc., which is based in Bensalem, Montgomery County, filed suit in federal court in Philadelphia on Oct. 23 against Highlands Nursing and Rehabilitation Center over allegations that the defendant owes the plaintiff $107,490.

That amount is the outstanding balance as of Oct. 17 stemming from a contract the two parties entered into back on Feb. 3 of this year, the lawsuit states.

In the housekeeping and laundry service agreement, HCSG agreed to provide management, supervision, labor and materials necessary to perform housekeeping and laundry services on the premises of the Highland’s facility, the suit states.

In return for the work, the plaintiff was supposed to be compensated in the amount of $468,000 per year, to be paid in monthly installments of $39,000, according to the complaint.

The service agreement, which commenced on March 1 of this year, could be canceled by either party 120 days after the services began, the suit states, provided a 30-day written notice was given.

In late September, however, a new company, Diversacare, took over operations of the facility from Highlands, with Highlands failing to fully compensate the plaintiff as per the terms of the contract.

Healthcare Services Group Inc. seeks the $107,490 it says it is owed, plus interest, attorney’s fees and litigation costs.

The complaint was filed by Reading, Pa. lawyers Steven J. Adams and Craig A. Hirneisen of the firm Stevens & Lee.


The federal case number is 2:12-cv-06034-TJS. 

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