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

District Court, District of Columbia·Decided December 18, 2024·No. Civil Action No. 2020-0784·Published

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

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

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

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.

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

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) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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