Facts

IV Solutions Inc. sued TakeCare Insurance Company Inc.

PLAINTIFF'S CONTENTIONS:
IV Solutions alleged that A.H. was insured by TakeCare and that TakeCare requested IV Solutions to provide medication and services to A.H., who had a serious heath condition and needed home infusion of medication, as well as nursing and physical therapy services. IV Solutions also alleged that it provided the services to A.H. pursuant to a contract with TakeCare, but that TakeCare only paid a portion of IV Solutions claims for payment and failed to pay the remaining amounts owed, thereby breaching the contract.

DEFENDANTS' CONTENTIONS:
TakeCare argued that it was only required to pay the reasonable value of the goods and services provided by IV solutions and that IV Solutions charges for Daptomycin, which were 40 times the average wholesale price, were unreasonable compared to the industry average.

Result

The court granted TakeCare's motion for summary judgment and denied IV Solutions motion for summary judgment. The court found the contract did not specify the rates or amounts that IV Solutions would charge for its drugs, but that IV Solutions was required to exercise its discretion in good faith and charge the reasonable value of Daptomycin. The court held that TakeCare paid IV Solutions the reasonable value for the drugs and services provided and did not breach the contract.

Other Information

IV Solutions appealed defendant TakeCare's motion for summary judgment to the 9th Circuit Court of Appeals. While the matter was on appeal, the parties reached a settlement to the satisfaction of all parties. FILING DATE: June 25, 2013.