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Intermed Associates, Inc. v. Maldonado

Citations: 351 F. Supp. 2d 821; 2004 WL 3094435Docket: 04 C 5681

Court: District Court, N.D. Illinois; December 6, 2004; Federal District Court

Narrative Opinion Summary

Intermed Associates, Inc. filed a lawsuit against Rafael Maldonado and All Imaging Diagnostic Center, Inc., alleging breach of contract and seeking declaratory and injunctive relief concerning a lease agreement for an MRI scanner. The case revolves around a contract governed by Illinois law, which required monthly payments and a per-use fee for the equipment. Defendants failed to meet their payment obligations starting February 2003, leading to a substantial debt. Despite a subsequent Statement of Commitment and contract amendment intended to address the defaults, All Imaging continued to miss payments. The court ruled on motions for summary judgment, granting it in part by finding no genuine issues of material fact for the period up to February 2004, thereby awarding the plaintiff $90,780 for unpaid fees and validating the 2% late fee stipulated in the contract. Defendants' claims that equipment disrepair excused their noncompliance were deemed insufficient to negate the breach for the specified period. The court deferred decisions on attorneys' fees pending further proceedings. This case underscores the necessity for clear contractual terms and the potential consequences of non-performance under contract law.

Legal Issues Addressed

Breach of Contract under Illinois Law

Application: The plaintiff must demonstrate the existence of a valid contract, performance of duties, breach by the defendant, and resultant damages. The defendants acknowledged a valid contract mandating monthly payments for an MRI scanner, which they failed to make.

Reasoning: Under Illinois law, a breach of contract claim requires the plaintiff to demonstrate the existence of a valid contract, performance of duties by the plaintiff, a breach by the defendant, and resultant damages.

Late Fee Assessment in Contract Amendments

Application: The court found that a 2% late fee was properly assessed as it was explicitly included in the contract amendment and Statement of Commitment.

Reasoning: The defendants attempted to dispute a 2% late charge, claiming they did not agree to it, but the contract amendment and Statement of Commitment clearly allowed for such charges.

Performance Disputes in Breach of Contract

Application: Disputes regarding the plaintiff's performance did not affect the breach of contract claim for the period specified, as no material facts were in contention.

Reasoning: However, this dispute regarding the plaintiff's performance did not affect the breach of contract claim for the period from February 2003 to February 2004, as there were no material facts in contention.

Summary Judgment Criteria

Application: The court must determine if there are genuine issues of material fact when ruling on summary judgment motions, granting the motion if the moving party is entitled to judgment as a matter of law.

Reasoning: The court emphasized that, in ruling on summary judgment motions, it must determine if there are genuine issues of material fact. If the evidence supports no such issues and the moving party is entitled to judgment as a matter of law, the motion will be granted.