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Hospital files breach of contract claim against group of doctors

On Behalf of | Feb 28, 2019 | Commercial Litigation

Failure to issue payment for services rendered and claims of failure to uphold the terms of a business contract are just two issues that can lead to intense contract disputes. Companies in Louisiana who encounter similar disputes may wish to take steps to protect their business interests, but the subsequent process can be complex. A hospital in another state has recently filed a breach of contract lawsuit against a group of doctors after it was accused of holding back payment for services rendered.

The incident reportedly began when a group of doctors filed a lawsuit against the hospital accusing it of owing the group more than $1.9 million. The group claims that in response to its attempts to collect payment, the hospital informed them that it had decided to terminate the arrangement. This reportedly came after the group decided to stop providing its services due to the alleged lack of payment.

However, the hospital has responded to the lawsuit by filing a claim of its own. According to reports, it has accused the group of failing to adhere to the terms of the agreement and failing to perform its contractual duties in a satisfactory manner. The hospital claims that the actions and performance of the group have led to substantial financial losses and caused irreparable harm to its reputation.

Business contracts can be complex documents that are sometimes subject to interpretation, and disputes that arise from these agreements can be highly-debatable matters. Those who encounter breach of contract disputes may find it beneficial to consult with an experienced attorney early on for guidance on how best to proceed. An attorney in Louisiana can examine the situation thoroughly and assist a client in forming a strategy to protect his or her legal rights and business interests.