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Contract dispute between LSU and foundation heats up

Back in July, we wrote about a contract disputes between Biomedical Research Foundation and Louisiana State University involving contracts the foundation had obtained in 2013 for the operation of two safety-net hospitals under Governor Jindal’s effort to privatize charity hospitals throughout the state.

LSU has claimed that the foundation breached the terms of the agreements in various ways, while the foundation denied those claims. As we noted back in July, the dispute appeared to be heading in a bad direction. This month, the university reportedly served formal notice to the foundation and requested that the foundation withdraw as the parent company of the University Health System. 

For its part, the foundation is refusing to withdraw and has accused the university, a public institution, of attempting to seize private assets. So, by all appearances, the issue will likely have to be resolved in court. This will require a look at the claims of breach alleged by the university. As we mentioned last time, the university has leveled a number of accusations, including failure to work collaboratively with LSU by promoting the academic mission and reputation of the LSU and failure to establish a “sustainable and competitive” business model.

Determining whether a breach of contract has occurred is not always an easy manner. Not only must the contract itself be thoroughly understand, but the facts of the case and the applicable law must be taken into account. In any such dispute, it is important to work with an experienced attorney. 

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