Quimbee logo
DMCA.com Protection Status

In re Doctors Hospital of Hyde Park

337 F.3d 951 (2003)

Case BriefRelatedOptions
From our private database of 33,600+ case briefs...

In re Doctors Hospital of Hyde Park

United States Court of Appeals for the Seventh Circuit

337 F.3d 951 (2003)

Facts

The State of Illinois (state) (plaintiff) had contractually agreed to pay Doctors Hospital of Hyde Park, Inc. (hospital) for medical services that the hospital provided to Medicaid patients, and the state owed money under this contract. The hospital assigned its right to collect that contractual debt to Daiwa Special Asset Corporation (Daiwa) (defendant). The hospital then filed a bankruptcy petition. At that point, the hospital owed taxes to the state. However, the hospital had few assets and many creditors, which meant that the state might not get any payment from those limited assets. Instead of seeking money for the hospital’s tax debt, the state requested permission from the bankruptcy court to set off the hospital’s tax debt against the state’s Medicaid debt, i.e., to reduce the state’s Medicaid bill by the amount of the hospital’s tax bill. However, as the hospital’s assignee, Daiwa now owned the right to payment for the state’s Medicaid bill. The bankruptcy court denied the state’s request, finding that (1) the attempted setoff was a noncontractual defense to the state’s Medicaid debt and (2) the state could not exercise a noncontractual defense that was specific to the hospital after the hospital’s contractual rights had been assigned to Daiwa. The district court reversed the ruling, finding that (1) the state’s right to a setoff was an implied term in the Medicaid contract and (2) the state could enforce its implied contractual right to a setoff even after the hospital assigned its contractual rights to Daiwa. Daiwa appealed to the Seventh Circuit.

Rule of Law

Issue

Holding and Reasoning (Posner, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 603,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 603,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 33,600 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 603,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 33,600 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership