Testing Lab Sues Nursing Center for Breach of COVID-19 Testing Agreement

A complaint was filed on Friday in the Eastern District of New York by Bioreference Health, LLC, against Bellhaven Management, LLC (doing business as Bellhaven Center for Rehabilitation and Nursing Care) (BCRNC). The complaint alleges that the defendant breached an agreement they held with the plaintiff by failing to pay their outstanding balance with Bioreference.

The plaintiff is a “clinical testing laboratory offering testing, information and related services to physician offices, clinics, hospitals, nursing homes, employers and governmental units.” When the COVID-19 pandemic began, the plaintiff explains that they were the first to set up a public drive-through testing center for COVID-19.

In May 2020, New York Governor Andrew Cuomo ordered nursing home and adult care facilities like the defendant to test all personnel twice per week, the complaint said. If a facility did not comply with the order, they would be subject to steep fines or even potential suspension and revocation of their operating license. As a provider of comprehensive testing services, the plaintiff provided services to the defendant.

Bioreference entered into an agreement with BCRNC in May of 2020 where they agreed to perform COVID-19 tests upon request from BCRNC. In return, BCRNC would pay the plaintiff amounts determined by the type of test being conducted. The plaintiff was to invoice BCRNC for compensation and according to the terms of the agreement, BCRNC had to submit payment within ten days of the invoice.

However, the complaint contends that BCRNC failed to submit payments for the tests that were provided by Bioreference and covered under the terms of the agreement. Bioreference billed the defendant $269,897.75 for all testing conducted between June 2020 and March 2021. The complaint claims that despite reaching out to the defendant on multiple occasions, they have yet to pay the outstanding statement.

The complaint cites breach of agreement and account stated. The plaintiff is seeking pre- and post-judgment interest, favorable judgment on each count, damages in an amount no less than $269,897.75, litigation fees, and any other relief deemed proper by the Court.

The plaintiff is represented by Friedman Kaplan Seiler & Adelman LLP.