Sovereign Healthcare, LLC et al.v.Mariner Healthcare Management Company
Mariner Health Care Management had previously obtained a ruling that three related healthcare companies breached administrative-services agreements by terminating them early and that the agreements’ liquidated-damages clauses were enforceable. In this second appeal, the companies challenged the trial court’s decision to impose liquidated damages on all signatories, award prejudgment interest, and recognize Mariner’s contractual right to attorney fees. The Georgia Court of Appeals held that the agreement made only Sovereign responsible for the early-termination fee. Holdings’ separate guaranty covered monthly service fees, not liquidated damages, and Southern had no guaranty obligation. The court held that the law-of-the-case doctrine did not resolve which entity owed damages because the first appeal had not decided that question. It upheld prejudgment interest because Georgia law makes interest mandatory on a fixed contractual demand, and it upheld the contractual attorney-fee ruling because the services agreements were not subject to the notice statute for notes or other evidence of indebtedness. The court left the final prevailing-party determination open until the remaining claims were resolved. Judgment was affirmed in part and reversed in part.
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