Maverick Benefit Advisors, LLC v. BostromAnnotate this Case
Plaintiffs, the purchasers of a health claims administration company, brought a breach of contract action against Defendant, the seller. After learning that they had not acquired all of the assets that contracted to purchase, Plaintiffs continued to operate the business for the next eighteen months. Only then did they stop making payments on the promissory note and then file this action. Defendant counterclaimed for breach of contract. Plaintiffs raised the affirmative defense that Defendant was first to breach the contract and that Plaintiffs were therefore excused from performing their contractual duties. The district court entered judgment in favor of Defendant. The Supreme Court affirmed, holding that Plaintiffs’ conduct after learning of Defendant’s alleged breach precluded it from asserting a prior breach as a defense to Plaintiffs’ breach-of-contract claim.