Jean Moreau & Assoc. v. Health Center Comm'n
720 S.E.2d 105
Va.2012Background
- HCC was established by Chesterfield County to operate health facilities, including Lucy Corr Village, a nursing-home facility.
- HCC expanded Lucy Corr Village in 1999 and 2002 to include assisted-living and independent-living (CCRC) components, seeking financial stability without county subsidies.
- In 2004, HCC awarded Jean Moreau a five-year contract to develop Springdale, an independent-living facility, with specified fee structures and conditions.
- May 2006, HCC voted to discontinue the contract; June 9, Moreau notified of potential unpaid fees, asserting development fees were due.
- HCC paid Jean Moreau nine invoices for 2005-2006 work on July 31, 2006; Moreau sought mediation for deferred fees in October 2006.
- Jean Moreau filed suit in January 2007 seeking declaratory relief, breach of contract, and quantum meruit; HCC raised plea in bar asserting Procurement Act and sovereign immunity defenses.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Procurement Act compliance for breach claim | Moreau asserted timely claim within 60-day window after final payment. | Moreau failed to submit a proper claim within 60 days and did not submit final payment notice. | Breach claim barred under mandatory Procurement Act procedures. |
| Sovereign immunity for quantum meruit against HCC | Municipal immunity should not bar quantum meruit against governmental functions. | Immunity applies when acting in governmental capacity; Springdale was governmental. | HCC immune from quantum meruit for governmental function. |
| Absolute immunity of HCC as creator by county | HCC should share Chesterfield County's absolute immunity. | HCC is not entitled to absolute immunity merely because created by a county. | HCC not entitled to absolute immunity; rejected Hampton Redevelopment reading. |
| Whether Springdale served a governmental or proprietary function | Springdale is akin to housing project, proprietary. | Springdale is part of continuum of care and governmental. | Springdale served a governmental function; immune from quantum meruit. |
Key Cases Cited
- Flory Small Business Dev. Ctr. v. Commonwealth, 261 Va. 230 (2001) (procurement claims require strict 60-day filing after final payment)
- Leonard v. Town of Waynesboro, 169 Va. 376 (1937) (quantum meruit against municipality where proprietary functions)
- Mount Jackson v. Nelson, 151 Va. 396 (1928) (quantum meruit against town for water main; proprietary result)
- Carter v. Chesterfield County Health Comm'n, 259 Va. 588 (2000) (governmental function for nursing services; immunity)
- Virginia Electric & Power Co. v. Hampton Redevelopment & Housing Authority, 217 Va. 30 (1976) (housing authority indicates proprietary function for certain entities)
- Prendergast v. Northern Virginia Regional Park Authority, 227 Va. 190 (1984) (determines whether entity is arm of state for immunity purposes)