Austin v. Recover-Care Healthcare

CourtDistrict Court, D. Kansas
DecidedMarch 19, 2024
Docket5:23-cv-04037
StatusUnknown

This text of Austin v. Recover-Care Healthcare (Austin v. Recover-Care Healthcare) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Austin v. Recover-Care Healthcare, (D. Kan. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

NESHON AUSTIN,

Plaintiff, Case No. 23-4037-DDC-RES

v.

RECOVER-CARE HEALTHCARE, LLC,

Defendant.

MEMORANDUM AND ORDER

Plaintiff Neshon Austin, proceeding pro se,1 sues defendant Recover-Care Healthcare, LLC for open account and breach of contract. This matter comes before the court on defendant’s Motion for Judgment on the Pleadings (Doc. 12). The court previously converted this motion into one seeking summary judgment because defendant submitted materials outside the pleadings. Doc. 21. Defendant argues it’s entitled to summary judgment because it never entered into a contract—or relationship of any kind—with plaintiff or her business. According to defendant, plaintiff simply has named the wrong party. While defendant’s assertions ultimately may prevail, plaintiff has adduced enough evidence to survive, for now, whether the parties had a contract. The court thus denies defendant’s motion. The court explains this decision, below.

1 Plaintiff proceeds pro se. The court construes her filings liberally and holds them to a less stringent standard than formal pleadings drafted by lawyers. See Haines v. Kerner, 404 U.S. 519, 520–21 (1972); Hall v. Bellmon, 935 F.2d 1106, 1110 (10th Cir. 1991). But the court does not assume the role of advocate for the pro se litigant. Hall, 935 F.2d at 1110. I. Background The following facts are uncontroverted, or, if controverted, are stated in the light most favorable to plaintiff as the non-moving party. Scott v. Harris, 550 U.S. 372, 378 (2007). Plaintiff’s business, Quality Nursing Services, LLC, (QNS) provided staffing services to nursing homes. On December 20, 2021, QNS entered a written agreement with Blue Valley

Nursing Home to provide personnel. See Doc. 18-3 (Pl. Ex. 3). QNS also has provided staffing services to Cambridge Place Senior Living. Doc. 12-2 at 1 (Halberstam Aff. ¶ 4). In December 2022, an entity called Cambridge Blue Valley Senior Living, LLC (Cambridge) began operating these two nursing homes. Id. (Halberstam Aff. ¶ 3). No written contract exists between QNS and Cambridge for the services QNS provides to the two nursing homes. Id. at 2 (Halberstam Aff. ¶ 6). And Cambridge never has had any agreement with plaintiff herself. Id. Despite the absence of written agreement between QNS and Cambridge, Cambridge paid QNS’s invoices. Cambridge testified that, at an unknown date, Cambridge received a letter from plaintiff and Gateway Commercial Finance, LLC (Gateway). Id. (Halberstam Aff. ¶ 7). The letter is addressed to RecoverCare, LLC. Doc. 12-3 (Halberstam Aff. Ex. 1). The letter

constitutes a notice of assignment, informing RecoverCare, LLC that RecoverCare, LLC’s “accounts have been assigned to [Gateway] and [Gateway] has purchased all rights, titles and interest in [QNS’s] account receivables.” Id. The letter instructed RecoverCare, LLC “to remit all payments of all present and future invoices due to [QNS] directly to [Gateway] and continue to do so until notified in writing only by Gateway[.]” Id. Consistent with these instructions, Cambridge has paid QNS’s invoices to Gateway directly. Doc. 12-2 at 2 (Halberstam Aff. ¶ 10). And QNS’s invoices come with a disclaimer specifying that QNS’s “invoices have been sold and assigned and Payable only to” Gateway. Doc. 12-4 at 3 (Halberstam Aff. Ex. 2). Plaintiff alleges that, on December 20, 2022, plaintiff and defendant entered a verbal and written staffing contract, and defendant agreed for plaintiff to supply healthcare workers to defendant’s skilled nursing facilities, including the two nursing homes at issue here. Doc. 5 at 2 (Am. Compl. ¶ 8). Plaintiff submitted an affidavit testifying: On or about (December 20, 2022) Blue Valley Health and Rehabilitation & Cambridge Place Senior Village under the ownership of Recover-Care Healthcare, LLC entered into a verbal contract agreeing off the terms of the written contract previously standing to be able to continue to provide [healthcare workers] to the two sistering nursing facilities “Cambridge Place Senior Village” and “Blue Valley Health and Rehabilitation” both currently under the ownership of “Recover-Care Healthcare, LLC.” Doc. 18 at 2 (Austin Aff. ¶ 9) (internal quotation marks omitted). Defendant disputes this assertion. Defendant Recover-Care Healthcare LLC’s sole member testified that defendant “has no involvement in the issues raised in [plaintiff’s] Amended Complaint.” Doc. 12-5 at 1 (Margulies Aff. ¶ 3). And defendant also testified that it doesn’t directly own the two nursing homes at issue here. Id. (Margulies Aff. ¶ 4). Defendant further testified that it has no agreement or account with plaintiff or QNS related to the issues raised in plaintiff’s Amended Complaint. Id. at 2 (Margulies Aff. ¶ 5). And defendant testified it never has had any agreement, account, or other relationship with plaintiff. Id. (Margulies Aff. ¶ 6). Going even further, defendant testified it never has had any contact with plaintiff or anyone associated with QNS. Id. (Margulies Aff. ¶ 7). Indeed, defendant testified that it has no employees. Doc. 20-1 at 1 (Margulies Aff. ¶ 3). And, according to defendant, Zisha Margulies is the only person authorized to enter into contracts on defendant’s behalf. Id. (Margulies Aff. ¶ 4). Despite defendant’s testimony that it has no employees and never has had any relationship with plaintiff, plaintiff has adduced some evidence of her communications with “Recover Care” employees. In January 2023, Any Paredes of “Recover Care Accounts Payable” asked employees of the two nursing homes for QNS’s W-9 form. See Doc. 18-4 at 1 (PI. Ex. 4). Ms. Parades informed the nursing home employees that “every new vendor we are contracted with we need to get their W-9.” Jd. An employee from Blue Valley Nursing Home forwarded Ms. Paredes’s request to plaintiff, /d., and plaintiff submitted the requested W-9, Doc. 18 at 2 (Pl. Aff. ¥ 10). Plaintiff Neshon Austin also had issues with overdue invoices and communicated with “Recover Care” employees about the payment issues. In February 2023, plaintiff sent the following email:

-M Gmail Neshon Austin Payment Status Neshon Austin s—<—*~i‘“‘~*S*S*(WN ed, Feb 22, 2023 at 2:50 PM To: Any Paredes , Judah Davidson , Julie Fox , Maggie Lord , Rachel Darling , Yitzchak King Good afternoon,

Unfortunately, we have sent many emails over the past two weeks that have gone unanswered regarding payment status, and we have still yet to receive proof of any recent paid-out invoices. We have been more than fair and lenient on late payments, but the amount in our aging report is too high. We value our relationship between both facilities, but unfortunately, we will have to pull all of our staff from working at Cambridge & Blue Valley starting 2/26/23. Once an update regarding payment status is received, Scheduling of staff can resume as normal. Hoping you can understand. Thank you. [Quoted text hidden] Quality Nursing Staff, LLC

Doc. 18 at 2 (PL. Aff. Jj 12, 13); Doc. 18-5 at 2 (PI. Ex. 5). Plaintiff received the following response to this email:

Gmail Neshon Austin Payment Status Yitzchak King □□□□□□□□□□□□□□□□□□□□□□□□ eM Feb 22, 2023 at 2:54 PM To: Neshon Austin , Any Paredes , Judah Davidson , Julie Fox , Maggie Lord

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Austin v. Recover-Care Healthcare, Counsel Stack Legal Research, https://law.counselstack.com/opinion/austin-v-recover-care-healthcare-ksd-2024.