Central Valley Orthopedic and Spine Inst. v. Sanders Enterprises
After plaintiff, Central Valley Orthopedic and Spine Institute, L.P. (Central Valley), leased a hospital facility from defendant, Sanders Enterprises, L.P. (Sanders), Central Valley assumed the license and Medicare provider number that had belonged to the previous tenant, Sanger General Hospital. Consequently, Central Valley was potentially liable for amounts that might be due to Medicare for overpayments made by Medicare to Sanger General Hospital. The lease therefore provided that Central Valley could offset any amounts paid to Medicare on behalf of Sanger General Hospital against the rent due to Sanders.
Central Valley took possession of the hospital facility in October 2002 but quit paying rent in May 2004. Central Valley ceased operations in June 2004 and filed the underlying action against Sanders alleging fraud and seeking rescission of the lease and damages. Central Valley claimed that there were significant amounts owed to Medicare for periods of time before it took possession of the premises. Sander
Comments on Central Valley Orthopedic and Spine Inst. v. Sanders Enterprises