O'Fallon nursing home sued over unpaid pharmacy bill, breach of contract

Kelly Holleran Apr. 26, 2010, 6:17am

Home Pharmacy Services has filed suit an O'Fallon nursing home that closed in January 2008, alleging it breached its contract when it failed to pay for pharmaceutical services provided to it.

Home Pharmacy Services claims it entered into a contract with Covenant Care of O'Fallon in which it agreed to provide certain pharmaceutical services to those living at the center. According to the complaint filed April 15 in St. Clair County Circuit Court, the contract became effective on July 1, 2002, and was to remain in effect until July 1, 2005. On July 1, 2005, each agreement would automatically renew for an additional three-year term, the suit states.

Again, on July 1, 2008, the contract was to be renewed for an additional three years unless Covenant Care of O'Fallon remained current with its payments to Home Pharmacy Services and provided Home Pharmacy Services at least 120 days written notice of its election not to extend the service, the complaint says.

In January 2008, Covenant Care of O'Fallon closed its doors, Home Pharmacy Services states. By that time, it was not current with its payments to Home Pharmacy Services and did not provide the company with its intent to not extend services, thus causing a renewal of the agreement, according to the complaint.

Now, because Covenant Care of O'Fallon renewed the contract but has failed to make payments, Home Pharmacy Services is seeking a late fee of 1.5 percent per month on each invoice that Covenant Care of O'Fallon failed to pay to Home Pharmacy Services. Home Pharmacy Services sent invoices to Covenant Care of O'Fallon from September 2006 through February 2009 which it has refused to pay in full, the suit states.

Also between September 2006 and January 1, 2008, Covenant Care of O'Fallon purchased goods and services from Home Pharmacy Services on its account, but has failed to pay for them, the complaint says.

"The debtor has failed to pay all amounts due and owing to Home Pharmacy, and a principal balance of $118,446.21 remains outstanding," the suit states. "Home Services did not provide its goods and services gratuitously, but rather, provided its goods and services with an expectation of compensation."

In addition to the late fees, Home Pharmacy Services is seeking the amounts of all invoices it sent to Covenant Care of O'Fallon, plus lost monthly profits, pre-judgment interest, attorneys' fees, costs and other relief the court deems just.

Gregory C. Mollett and Laura C. Hayden of Greensfelder, Hemker and Gale in St. Louis will be representing it.

St. Clair County Circuit Court case number: 10-L-178.

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