American University of the Caribbean, N.V. v. Caritas Healthcare, Inc.

Summarized by Lynn Hinson , Dean Mead Egerton Bloodworth Capouano & Bozarth PA
13 years 8 months ago

Citation:

In the United States Court of Appeals for the Eleventh Circuit Case Number 10-12836 (not published)

Tag(s):

Ruling:

The Eleventh Circuit Court of Appeals made several rulings in affirming the judgment of the District Court. First, the Court held that the unrebutted allegation in the Complaint that payments on a promissory note and a related agreement were owed in Florida was sufficient to state a prima facie case of personal jurisdiction under Florida law. In addition, the failure of the Defendants to object to personal jurisdiction based on due process grounds waived that argument. Second, the 11th Circuit held that when a party moving for summary judgment has met the initial burden of showing the absence of a genuine issue as to any material fact, the non-moving party may not simply rely on allegations or denials in a pleading to defeat summary judgment. Third, the 11th Circuit held that Florida courts require mandatory or limiting language before they will construe remedies stated in a constract as exclusive.

Procedural context:

The United States District Court for the Southern District of Florida entered summary judgment for damages on a promissory note and summary judgment for consequential damages for breach of a related agreement. The Defendants appealed, claiming that the District Court lacked personal jurisdiction, ignored disputed factual issues and improperly awarded consequential damages. The 11th Circuit affirmed the District Court's decision.

Facts:

American University of the Caribbean, N.V., a medical school in the Netherland Antilles, loaned $3,500,000.00 to Caritas Healthcare, Inc.for capital to upgrade Caritas' medical facilities. Caritas executed a promissory note in favor of American University to repay the loan. The parties also entered into an affiliation agreement. Wyckoff Heights Medical Center, Inc. and Brooklyn Queens Healthcare, Inc., which was the parent of both Caritas and Brooklyn Queens, guaranteed payment of the note and performance of the affiliation agreement. Caritas later filed filed bankruptcy. The note was to be repaid through the clerkship slots provided to medical students at American University of the Caribbean. For each student enrolled in a clerkship, the outstanding debt would be reduced by $341.25 per week. A dispute arose, and American University of the Caribbean sued on the note and the affiliation agreement. American University of the Caribbean moved for summary judgment on the note and the affiliation agreement. It submitted affidavits and an expert's report on damages in support of the motion for summary judgment. The Defendants argued that the pleadings and the agreements established that there were genuine issues of material fact. They submitted no affidavits in opposition to the motion for summary judgment. The District Court awarded summary judgment in favor of American University of the Caribbean for the balance due on the note. In addition, the District Court awarded summary judgment for consequential damages based on the affiliation agreement. Defendants then appealed to the 11th Circuit.

Judge(s):

Circuit Judges Edmondson and Barkett and District Court Judge Fuller, sitting by designation.

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