TASK
Horizon—a large, publicly traded provider of both nursing homes and management for nursing homes—wanted to expand into Osceola County, Florida. Southern Oaks was already operating in Osceola County; it owned the Southern Oaks Health Care Center and had a Certificate of Need issued by the Florida Agency for Health Care Administration for a new one-hundred-and-twenty-bed facility in Kissimmee. Horizon and Southern Oaks decided to form a partnership to own the proposed Kissimmee facility, which was ultimately named Royal Oaks, and agreed that Horizon would manage both the Southern Oaks facility and the new Royal Oaks facility. To that end, Southern Oaks and Horizon entered into twenty-year partnership and management contracts. The partnership agreements provided that “irreconcilable differences” was a permissible reason for dissolving the partnership. Three years later, Southern Oaks filed suit alleging that Horizon breached its obligations under two different partnership agreements and that Horizon had breached the various management contracts. The court ordered that the partnerships be dissolved, finding that they were incapable of continuing to operate in business together. Explain whether Southern Oaks is entitled to receive a damage award for the loss of the partnerships’ remaining seventeen years’ worth of future profits.
