Crutcher v. MultiPlan, Inc., No. 20-3572 (8th Cir. 2022)
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Plaintiff, the owner of TLDI, filed suit against MultiPlan and PHCS, alleging numerous causes of action, including those relevant to this appeal—breach of contract and a right to an award of attorneys' fees. The Eighth Circuit affirmed the district court's denial of attorneys' fees, concluding that the Network Agreement's indemnity clause does not permit recovery of attorneys' fees in this dispute between the contracting parties.
However, the court reversed the district court's holding that plaintiff's conduct waived the contractual amendment-in-writing requirement, concluding that waiver and modification have been pleaded adequately. Furthermore, even assuming arguendo that Multiplan presented evidence sufficient to establish the presumption of receipt, plaintiffs countered with evidence that it was not received. Finally, the court concluded that alterations in position suffice as to consideration. In this case, the revised fee schedule together with the increased potential patient pool changed the obligations of both parties.
Court Description: [Smith, Author, with Gruender and Stras, Circuit Judges] Civil case - Contracts. In action alleging defendant breached the parties' agreement by applying discounts to plaintiff's claims in excess of the amount contained in the agreement, the district court did not err in determining that the indemnity clause in the agreement did not provide for an award of attorneys' fees in an action between the contracting parties; defendant adequately pleaded waiver and modification as defenses to plaintiff's breach-of-contract claims; the district court erred in finding plaintiff had waived their right to object to the introduction of a new fee schedule as it is not clear that plaintiff ever received notice and had knowledge of defendant's unilateral amendment of the contract; reversed and remanded for further proceedings on the matter of waiver.
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