New Orleans Home for the Incurables named in breach of contract lawsuit

By Angela Underwood | Jul 5, 2018

A Pennsylvania corporation has filed a lawsuit claiming that a rehabilitation center has failed to pay for contracted housekeeping and laundry services that it performed.

Healthcare Services Group filed a lawsuit April 26 in the U.S. District Court for Eastern Pennsylvania against New Orleans Home for the Incurables Inc., dba The John J. Hainkel Jr. Home Rehabilitation Center, claiming breach of contract and unjust enrichment.

According to Count 1, plaintiff's attorney John Kilagannon of Philadelphia argues that in 2015, HCSG and New Orleans Home contracted to partner in a Laundry Service Agreement (Agreement). “Pursuant to the Agreement, New Orleans Home was required to pay HCG’s specified monthly sums in consideration of HCSG’s providing services to New Orleans Home,” the complaint states, noting New Orleans Home was required to pay $34,650 monthly.

According to the complaint, “as a direct and proximate result of New Orleans Home breach of contractual duties, HCSG has been and continues to be damaged."


Count 2 of the complaint states that even though HCSG fights for rendered services payment, they have not been paid, according to the complaint. “If New Orleans Home fails to pay the reasonable value of services, then they are unjustly enriched,” it states.

The plaintiff provides Exhibit A, a Housekeeping and Laundry Terms Agreement that included pricing, payment terms, scope of work, tax and failure to pay terms. The monthly full service fee includes a full-time account manager and district manager salaries; wages and taxes; fringe benefits; company uniforms; background checks; re-bills,vaccines and other medical exams and cleaning, laundry, housekeeping and chemicals supplies.  

Concluding the 15-page complaint, Kingannon notes the Failure to Pay violation. “Client acknowledges that failure to timely pay any amounts due hereunder, or any portion thereof, shall be a material breach of this Agreement for which HCSG may, in addition to pursuing all other remedies, immediately terminate this Agreement," he claims. "Client shall reimburse HCSG for all expenses incurred by HCSG in exercising any of its rights under this Agreement or applicable law with respect to a default in payment or other breach of this Agreement,” according to the complaint, adding, “the prevailing party should be entitled to recover reasonable attorneys’ fees, court costs and related expenses.”

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