Legal Question in Business Law in Iowa

Loss of files due to extenuating circumstances

I am contracted by the Iowa Department of Human Services. to provide therapy services. I subcontact some work out. Due to deficient work, I gave a 30-day notice to one sub-contractor. Two days prior to her final day of work for me, she was seriously injured, resulting in a coma and subsequently, has limited functioning. She worked out of her home, as do I and the other subcontractors. I had difficulty obtaining her files and client records. Shortly thereafter, I was notified by DHS that my files would be audited. The audit resulted in mine and the other subcontractors having 100% accuracy of files. The audit of the particular subcontractor in question resulted in a pay-back to DHS of $32,000 due to deficiences and missing file requirements. I certainly do not have this kind of money. DHS is holding me accountable due to the fact that I hold the contract with the State. Though my subcontract states, ''If an audit of the billing, work performed and records kept results in (myself) being required to pay back money to the State of Iowa for work performed by (subcontractor), the parties agree that (subcontractor) will be responsible to reumburse (myself)''......I am certain that I would not receive this money. Please advise? Thanks.


Asked on 8/19/06, 1:56 am

1 Answer from Attorneys
Robert Luedeman solo practitioner

Re: Loss of files due to extenuating circumstances

You'd best hire yourself a lawyer asap, and you'd best start thinking about where the money is going to come from because DHS is not going to go away. If you'd like to talk about it send me an email and let's chat.

Read more
Answered on 8/19/06, 5:48 pm


Related Questions & Answers

More Business Law questions and answers in Iowa