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Contracts Keyed to Murray
U.S. Nursing Corp. v. Saint Joseph Medical Center
Facts
U.S. Nursing Corp. (Plaintiff) entered into a contract with Saint Joseph Medical Center (Defendant) to provide nurses for Defendant. Under the contract, if Defendant failed to give seven days’ notice to Plaintiff before terminating the contract, Defendant would be required to pay Plaintiff what it would have earned during those seven days. Plaintiff did not apply for a license, as required under the Illinois Nurse Agency Licensing Act, until after it entered into the agreement with Defendant. The Illinois Department of Labor denied a license to Plaintiff, because it had begun performing under the contract without a license and had failed to properly train and verify the references of some of its nurses. The department notified Defendant that it was in violation of the licensing law for using Plaintiff’s services. Defendant terminated the contract and paid Plaintiff for services rendered. Plaintiff sued Defendant to recover the additional seven days’ payment for Defendant’s termination of the contract without sufficient notice. The district court found the contract to be unenforceable on public policy grounds and granted Defendant’s motion for summary judgment. Plaintiff appealed.
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