Pharmacy Corporation of America v. Allegiant Healthcare of Phoenix LLC
2:23-cv-02437
D. Ariz.May 20, 2025Background
- PharMerica Corporation entered into a Pharmacy Services Agreement (PSA) with Allegiant Healthcare entities in 2020 to provide pharmacy goods and services to skilled nursing facilities.
- The agreement required Allegiant to pay PharMerica's invoices within 90 days, with unpaid balances accruing interest at 10% per year.
- Allegiant failed to pay over $1 million in invoices, alleging overcharges and inaccurate billing by PharMerica based on internal audits.
- PharMerica sued for breach of contract (non-payment), breach of contract (improper termination), unjust enrichment, and account stated; Allegiant counterclaimed for breach of contract, breach of the covenant of good faith and fair dealing, and unjust enrichment.
- PharMerica moved for summary judgment as to its main claims and all of Allegiant’s counterclaims.
- The court granted PharMerica's motion for summary judgment on the breach of contract for non-payment and dismissed Allegiant’s counterclaims, pending further briefing on damages and appropriate defendants.
Issues
| Issue | Plaintiff’s Argument | Defendant’s Argument | Held |
|---|---|---|---|
| Breach of contract for non-payment | Allegiant failed to pay contractually owed invoices | Invoices contained overcharges and errors; justified non-payment | Summary judgment for PharMerica; Allegiant failed to provide specific evidence or details to support its defenses |
| Account stated | Failure to object to invoices constitutes acceptance of debt | Objects due to alleged overcharges (but not specifically pled) | Not reached (moot due to main claim granted) |
| Allegiant’s counterclaims | Allegiant's claims are conclusory and unsupported | PharMerica overcharged Allegiant approx. $600,000 | Summary judgment for PharMerica; no specific, admissible, or timely evidence produced |
| Use of untimely evidence | New evidence offered after discovery closed should be excluded | Evidence supports defenses (despite late production) | Allegiant’s late evidence excluded; not substantially justified or harmless |
Key Cases Cited
- Celotex Corp. v. Catrett, 477 U.S. 317 (1986) (outlines summary judgment standard and movant’s burden)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1986) (summary judgment standard; mere allegations insufficient)
- First Nat. Bank of Ariz. v. Cities Serv. Co., 391 U.S. 253 (1968) (evidence must raise genuine dispute for jury)