Opinion
Civil Action 22-cv-225
12-16-2024
MEDIX STAFFING SOLUTIONS, INC., an Illinois corporation, Plaintiff, v. NOVO HEALTH, LLC, a Wisconsin limited liability company, and NOVO HEALTH TECHNOLOGY GROUP, LLC, a Wisconsin limited liability company, and NOVO CONSERVATIVE CARE, LLC, a Wisconsin limited liability company, and NOVO DIRECT CONTRACTING, LLC, a Wisconsin limited liability company, and NOVO, LLC, a Wisconsin limited liability company, and INNOVATION ALLIANCE, LLC, a Wisconsin limited liability company, and CURT KUBIAK, an individual, Defendants.
DECLARATION OF BRIAN ELLEFSON IN SUPPORT OF FINAL JUDGMENT
Sharon Johnson Coleman, Judge
BEFORE ME, the undersigned authority, personally appeared, BRIAN ELLEFSON, after first being duly sworn, hereby deposes and says as follows under oath:
1. I am over the age of 18, of sound mind, and have personal knowledge of the facts stated in this Declaration. I submit this Declaration in support of the entry of Final Judgment in favor of Plaintiff Medix Staffing Solutions, Inc. and against Defendants Novo Health, LLC, Novo Health Technology Group, LLC, Novo Conservative Care, LLC, Novo Direct Contracting, LLC, Novo, LLC, and Innovation Alliance, LLC (“Corporate Defendants”). If called to testify at trial, I would testify consistent with this Declaration.
2. I am Plaintiff's Vice President of Finance and Controller, and I am familiar with Plaintiff's books and records.
3. The records submitted with this Declaration were made and kept in the ordinary course of Plaintiff's business. It is Plaintiff's regular practice to make such records at or near the time of the recorded events. The records were created by, or based on information from, persons with personal knowledge acting in the ordinary course of business. I hereby authenticate Plaintiff's records.
4. Plaintiff is a staffing company that provides its customers with the services of Plaintiff's workers pursuant to written contracts. Under these agreements, Plaintiff invoices its customers for the use of Plaintiff's workers, and customers are required to pay for such use.
5. On May 11, 2020, Plaintiff and Corporate Defendants entered into a written contract titled Epic Project Services Agreement, along with an addendum titled Addendum to the Service Agreement (collectively, the “Agreement”), under which Plaintiff agreed to provide staffing services to Corporate Defendants.
6. Plaintiff fully performed its obligations under the Agreement. However, Corporate Defendants breached the Agreement by failing to make the required payments.
7. Plaintiff filed the Complaint on January 13, 2022 (ECF No. 1) and the Second Amended Complaint (“SAC”) on February 7, 2023 (ECF No. 31) to recover the $1,583,276 principal balance owed by Corporate Defendants.
8. I have reviewed the allegations in the SAC, and I affirm that the allegations are true and correct.
9. The exhibit attached to the SAC is a true and correct copy of the Agreement, maintained by Plaintiff in the ordinary course of business.
10. The Agreement provides that Corporate Defendants owe late fees of 1.5% per month on any invoice aged longer than 60 days.
11. On February 13, 2024, the Court granted Plaintiff's motion for summary judgment against Defendant Novo Health, LLC on Count I (breach of contract) (ECF No. 59).
12. On December 13, 2024, the Court granted Plaintiff's motion for entry of judgment against Defendants Novo Conservative Care, LLC, Novo Direct Contracting, LLC, Novo, LLC, and Innovation Alliance, LLC in the same manner as the summary judgment entered against Novo Health, LLC. This judgment was entered by stipulation as to those entities and by default against Defendant Novo Health Technology Group, LLC due to its failure to retain counsel (ECF No. 88).
13. On December 15, 2024, the parties filed a Stipulation of Dismissal concerning a settlement between Plaintiff and Defendant Curt Kubiak, leaving the Corporate Defendants as the only remaining Defendants in the case. The Court has found in favor of Plaintiff and against all Corporate Defendants by summary judgment, stipulation, and/or default.
14. The Corporate Defendants have made no payments, and the principal balance of $1,583,276 remains outstanding.
15. As of December 16, 2024, the contract-based late fees owed by Corporate Defendants total $966,118 (Ex. A).
16. As of December 16, 2024, the total amount owed by Corporate Defendants, including the principal balance and late fees, is $2,554,691.
17. Pursuant to the Service members Civil Relief Act (50 U.S.C. § 520), Corporate Defendants are not engaged in military service. Based on my personal knowledge, none of the Corporate Defendants are currently on active duty in the military service of the United States, nor have they been on active duty within 30 days prior to this date. “Active Service” includes members of the Army, Navy, Air Force, Coast Guard, and Marines, as well as National Guard members ordered to active duty for a period exceeding 30 days.
18. After accounting for all credits and calculating all amounts owed, Corporate Defendants Novo Health, LLC, Novo Health Technology Group, LLC, Novo Conservative Care, LLC, Novo Direct Contracting, LLC, Novo, LLC, and Innovation Alliance, LLC, jointly and severally, owe Plaintiff $2,554,691 as of December 16, 2024.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on 12/16/2024
BRIAN ELLEFSON Vice President of Finance and Controller Plaintiff Medix Staffing Solutions, Inc.