According to an article on The Times-Tribune.com, PA Lackawanna Holdings LLC has accused the county of breach of contract, alleging it was not informed of an ongoing agreement with a commercial linen supplier when it bought the county’s nursing home in 2010.
The nursing facility, now known as Lackawanna Health & Rehab Center, was purchased by PA Lackawanna Holdings in March 2010. According to the complaint, the county was required to provide copies of all contracts, leases, and agreements related to the nursing home, which the new owner assumed under the purchase agreement.
But PA Lackawanna Holdings alleges that it never received a copy of a 2008 contract with Dempsey Uniform & Linen Supply Inc., nor was it made aware of 2009 contract with Dempsey that ran until 2014, to provide commercial linen services to the facility. It was not until the new owner terminated services with the linen company that Dempsey went to court in June 2010 to compel PA Lackawanna Holdings to honor the 2009 contract.
A county spokesperson said the county has not comment on the lawsuit, citing a policy against speaking about pending litigation.