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U.S. Nursing Corp. v. Saint Joseph Medical Center

United States Court of Appeals for the Seventh Circuit
39 F.3d 790 (1994)


Facts

U.S. Nursing Corp. (U.S. Nursing) (plaintiff) entered into a contract with Saint Joseph Medical Center (St. Joseph) (defendant) to provide nurses for St. Joseph. Under the contract, if St. Joseph failed to give seven days’ notice to U.S. Nursing before terminating the contract, St. Joseph would be required to pay U.S. Nursing what it would have earned during those seven days. U.S. Nursing did not apply for a license, as required under the Illinois Nurse Agency Licensing Act, until after it entered into the agreement with St. Joseph. The Illinois Department of Labor denied a license to U.S. Nursing, because it had begun performing under the contract without a license and had failed to properly train and verify the references of some of its nurses. The department notified St. Joseph that it was in violation of the licensing law for using U.S. Nursing’s services. St. Joseph terminated the contract and paid U.S. Nursing for services rendered. U.S. Nursing sued St. Joseph to recover the additional seven days’ payment for St. Joseph’s termination of the contract without sufficient notice. The district court found the contract to be unenforceable on public policy grounds and granted St. Joseph’s motion for summary judgment. U.S. Nursing appealed.

Rule of Law

Issue

Holding and Reasoning (Lay, J.)

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