Breach of Contract

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7^th Circuit Court of Appeals

Case Name: Milwaukee Center for Independence, Inc., v. Milwaukee Health Care, LLC, et al.

Case No.: 18-3205

Officials: BAUER, MANION, and ROVNER, Circuit Judges.

Focus: Breach of Contract

Milwaukee Health Care, LLC (MHC) and Milwaukee Center for Independence, Inc. (MCFI) entered into an agreement in 2014. Per that agreement, MCFI, a non-profit organization dedicated to providing medical care for individuals with brain injuries, would operate a brain-injury center in MHC’s nursing facility. MHC would handle all billing and collections for the services MCFI provided and, through a process outlined in the agreement, remit the funds collected to MCFI (after taking a cut for itself).

But MHC failed to follow through on its obligations under the contract, redirecting MCFI’s funds to pay its employees and other creditors instead. MCFI sued MHC for breaching the contract and brought claims against MHC’s principal, William Nicholson. The district court, exercising diversity jurisdiction, entered summary judgment against MHC for breach of contract and against Nicholson for conversion and civil theft. The district court awarded MCFI over $2 million in damages, interest, and costs against MHC and Nicholson, jointly and severally. It also awarded MCFI over $200,000 in attorney’s fees and costs against Nicholson alone.

MHC and Nicholson appeal the judgments against Nicholson. Because we agree with the conclusions of the district court, we affirm.

Affirmed

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Derek A Hawkins is trademark corporate counsel for Harley-Davidson. Hawkins oversees the prosecution and maintenance of the Harley-Davidson’s international trademark portfolio in emerging markets.