Inova Health Care Services, for Inova Fairfax Hospital and Its Department, Life With Cancer v. Omni Shoreham Corporation

CourtDistrict Court, District of Columbia
DecidedDecember 18, 2024
DocketCivil Action No. 2020-0784
StatusPublished

This text of Inova Health Care Services, for Inova Fairfax Hospital and Its Department, Life With Cancer v. Omni Shoreham Corporation (Inova Health Care Services, for Inova Fairfax Hospital and Its Department, Life With Cancer v. Omni Shoreham Corporation) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inova Health Care Services, for Inova Fairfax Hospital and Its Department, Life With Cancer v. Omni Shoreham Corporation, (D.D.C. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

INOVA HEALTH CARE SERVICES, FOR INOVA FAIRFAX HOSPITAL AND ITS DEPARTMENT, LIFE WITH CANCER, et al.,

Plaintiffs,

v. Civil Action No. 20-784 (JDB) OMNI SHOREHAM CORP.,

Defendant.

MEMORANDUM OPINION

After this Court granted summary judgment to plaintiffs Inova Health Care Services, for

Inova Fairfax Hospital and its Department, Life with Cancer (“Inova”) and Smith Center for

Healing and the Arts (“Smith Center”) (together, “Plaintiffs”) on their breach of contract claims,

a jury awarded them $225,000.27 in damages. Then they and defendant Omni Shoreham

Corporation (“Omni”) filed a suite of post-trial motions and filings. First, Plaintiffs filed a bill of

costs, which Omni contests in part. Second, Plaintiffs filed a motion for both prejudgment and

postjudgment interest. Third, Omni filed a combined motion to dismiss for lack of jurisdiction

and motion for a new trial. The Court now resolves each matter.

BACKGROUND

Following the loss of his sister to cancer, Robert Hisaoka started the “Joan Hisaoka

‘Make a Difference’ Gala” (the “Gala”) to raise money for cancer-focused organizations

including Inova and Smith Center. Trial Tr. vol. 1 [ECF No. 134–3] at 89:7–90:2. From 2013

through 2018, Hisaoka, through his company RGH Management Services (“RGH”), hosted the

Gala at the Omni Shoreham Hotel in Washington, D.C. (the “Hotel”). See Omni’s Statement of

1 Undisputed Facts Supp. Omni Mot. for Summ. J. [ECF No. 62–2] (“Omni SUMF”) ¶¶ 2, 3; Pls.’

Statement of Material Facts as to Which There is No Genuine Dispute [ECF No. 63–2] (“Inova

SUMF”) ¶ 41. Originally, the same was to be true for 2019; Hisaoka, on behalf of Inova, entered

a contract (the “Agreement”) with Omni providing that the Hotel would host that year’s gala on

September 21. First Am. Compl. Ex. A [ECF No. 26] (“Agreement”) at 1–2, 6. But on July 8,

2019, Omni informed Inova that the Hotel was relocating the Gala from its traditional

locations—the Ambassador and Regency Ballrooms—to other spaces at the Hotel. Omni SUMF

¶¶ 38–39; Inova SUMF ¶ 80. Unpleased to say the least, Inova tried to get Omni to reverse

course on the relocation, and told Omni it would no longer host the Gala at the Hotel when Omni

refused. Omni SUMF ¶¶ 42–45; Inova SUMF ¶¶ 81, 104.

This suit started in May 2020 when Inova sued Omni in D.C. Superior Court and Omni

removed the case to federal court. Inova Health Care Servs. for Inova Fairfax Hosp. v. Omni

Shoreham Corp. (“Inova I”), Civ. A. No. 20-784 (JDB), 2022 WL 4598578, at *3 (D.D.C. Sept.

30, 2022). Inova alleged Omni breached the Agreement and the covenant of good faith and fair

dealing. Id. Omni subsequently counterclaimed, alleging it was Inova who breached the

Agreement. Id.

Years of litigation later, Plaintiffs and Omni moved for summary judgment on all their

claims. Id. at *4. Initially, this Court denied both motions because of genuine factual disputes.

See id. at *16. In doing so, it determined that Plaintiffs had put forward adequate facts to

establish they had standing. Omni had argued—both in its summary judgment motion and in an

earlier motion to dismiss—that Smith Center lacked constitutional and prudential standing

because it wasn’t a party to the Agreement and there were inadequate facts to show it was a

third-party beneficiary to it. Id. at *5. But this Court concluded that Smith Center’s payments to

2 Omni for the 2019 Gala and past galas, plus the event’s receipt of tax-exempt status due to Smith

Center’s involvement, was “sufficient evidence of Smith Center’s involvement in the Agreement

such that a reasonable finder of fact could conclude that Omni had reason to know Smith Center

was a third-party beneficiary.” Id. at *7. And this Court also rejected Omni’s argument that

Inova lacked standing because Hisaoka, acting through RGH, didn’t have authority to enter the

Agreement on Inova’s behalf. Id. at *8. Uncontested evidence showed that Inova ratified the

Agreement four days after Hisaoka signed it. Id.

After the denial of the parties’ summary judgment motions, Plaintiffs moved for

reconsideration of their motion. Inova Health Care Servs. for Inova Fairfax Hosp. v. Omni

Shoreham Corp. (“Inova II”), Civ. A. No. 20-784 (JDB), 2023 WL 5206142, at *4 (D.D.C. Aug.

14, 2023). This Court then reexamined its decision and determined that, as Plaintiffs argued, the

Court had erroneously determined genuine disputes of material fact existed. Id. Namely, this

Court determined on reconsideration that (1) the Agreement unambiguously prohibited room

reassignment without Inova’s consent, and extrinsic evidence confirmed as much; (2) Omni thus

breached the Agreement when it unilaterally relocated the Gala to other rooms; (3) the breach

was material because the room assignments were “vital[ly] importan[t]” to Inova’s assent to the

Agreement; and (4) Omni also breached the covenant of good faith and fair dealing by giving the

rooms originally assigned to the Gala—and promised by the Agreement—to another, more

lucrative event months after entering the Agreement. Id. at *6–19. Hence, this Court granted

Plaintiffs’ summary judgment motion on both of their claims and denied Omni’s motion

altogether. Id. at *19.

That left the issue of damages. The parties first tried to resolve the issue in mediation,

but their attempts failed. See Notice Regarding Mediation [ECF No. 87]. Hence, a jury trial on

3 damages was scheduled. Inova Health Care Servs. for Inova Fairfax Hosp. v. Omni Shoreham

Corp. (“Inova III”), Civ. A. No. 20-784 (JDB), 2024 WL 4534156, at *2 (D.D.C. July 16, 2024).

Prior to trial, Omni filed a motion in limine that sought to exclude testimony by

Plaintiffs’ damages-analysis expert, David N. Paris. See Def.’s Mot. in Limine to Exclude or

Limit the Testimony of David N. Paris [ECF No. 95] (“Mot. in Limine”). Omni argued, inter

alia, that Paris’s testimony on Plaintiffs’ loss of distributions was inadmissible under Federal

Rule of Evidence 702 because it was the product of unreliable methods and principles, and that

those methods were not reliably applied to the facts in the case. See Inova III, 2024 WL

4534156, at *3. This Court disagreed. To start, the “but for” methodology Paris employed was

“a reliable methodology that experts use to determine economic harm.” Id. (quotation marks

omitted). Plus, Paris’s application of that method to the facts of the case was supported by

sufficient evidence to allow the jury to determine its evidentiary weight. Id.

Then, in its pretrial statement, Omni said it expected to offer several letters between the

parties’ counsel. Def.’s Pretrial Statement [ECF No. 105] at 4. One letter—which was written

and sent before Plaintiffs started this lawsuit—offered Plaintiffs a $42,479.52 check. See Letter

from Kristen Reinsch, Litig. Counsel, to Christopher Mahoney (Feb. 27, 2020) [ECF 129–5] at 1

(“Prelitigation Letter”). The letter explained that the amount reflected “(1) the hard costs

associated with Inova’s change of venue to the Mandarin Oriental, Washington D.C.

($21,624.96); (2) legal fees Inova claims to have incurred in connection with the negotiation of

the new venue contract ($10,851.59); and (3) an additional 30% of the sum of those hard costs

and legal fees to cover additional legal fees incurred in connection with this dispute

($10,003.24).” Id.

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Inova Health Care Services, for Inova Fairfax Hospital and Its Department, Life With Cancer v. Omni Shoreham Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inova-health-care-services-for-inova-fairfax-hospital-and-its-department-dcd-2024.