Cy-Fair health care company sued over contract

A rehabilitation provider is accusing Cy-Fair and Clear Lake home health care companies of failing to pay for therapy services.

RehabCare Group East Inc. filed a lawsuit against Bayou City Home Health Care Inc., doing business as Bayou City Home Health Care, and Professional Nurses at Home Inc., doing business as Bayou City Home Health Care North, on Dec. 10 in Harris County District Court.

According to the complaint, RehabCare entered into separate agreements to provide therapy services to patients at Bayou City and Bayou North in October 2009.

The company says it has provided therapy services as promised and has submitted numerous invoices to the defendants. Bayou City Home Health Care and Bayou City Home Health Care North have allegedly refused to pay, despite repeated demands from RehabCare.

The therapy provider says both Bayou City and Bayou North promised to pay the invoices and, based on that assurance, asked RehabCare to continue working for the home health care companies.

RehabCare accuses the defendants of a breach of contract and promissory estoppel for allegedly failing to pay, as promised, for therapy and rehabilitation.

RehabCare also argues Bayou City and Bayou North have received unjust enrichment. The therapy provider says both home health care companies have been reimbursed by Medicare for all, or a significant portion, of RehabCare’s services but have unlawfully withheld the money from the provider.

RehabCare is asking for an unspecified amount of money in damages along with interest, court costs and attorney fees. The company also requests a constructive trust be created with Medicare reimbursements received by the defendants but not paid to RehabCare.

Attorneys Gregory M. Sudbury, of Dallas, and Phillip A. Martin, of Louisville, are representing RehabCare.

Harris County District Court Case No. 2010-78236.

This is a report on a civil lawsuit filed at the Harris County Courthouse. The details in this report come from an original complaint filed by a plaintiff. Please note, a complaint represents an accusation by a private individual, not the government. It is not an indication of guilt, and it only represents one side of the story.