Plaintiff alleges that it had contracts with Defendant Golden Day Schools, Inc. whereby Plaintiff advanced state and federal funds to Golden Day for the provision of nutrition services and subsidized childcare and development services to low-income families for fiscal years 2008-09, 2009-10, 2010-11, and 2011-12. Pursuant to audits conduct by the Office of the California State Controller, it was determined that almost all of Defendant’s reported costs for the audit period were questionable as unsupported, unallowable or excessive. Based on the findings of the audit report, the Department of Education issued notices of action to recoup the amounts advanced to Golden Day that the Controller found were unsupported, unallowable, or excessive. The Controller’s findings and the Department’s recoupment determinations have been fully litigated. The Office of Administrative Hearings (“OAH”) denied Golden Day’s appeals and ordered Golden Day to reimburse the Department; the OAH Decision is now f
Hearing Date
July 31, 2020
Type
Contract/Warranty Breach - Seller Plaintiff (no fraud/negligence) (General Jurisdiction)
For full print and download access, please subscribe at https://www.trellis.law/.
Plaintiff alleges that it had contracts with Defendant Golden Day Schools, Inc. whereby Plaintiff advanced state and federal funds to Golden Day for the provision of nutrition services and subsidized childcare and development services to low-income families for fiscal years 2008-09, 2009-10, 2010-11, and 2011-12. Pursuant to audits conduct by the Office of the California State Controller, it was determined that almost all of Defendant’s reported costs for the audit period were questionable as unsupported, unallowable or excessive. Based on the findings of the audit report, the Department of Education issued notices of action to recoup the amounts advanced to Golden Day that the Controller found were unsupported, unallowable, or excessive. The Controller’s findings and the Department’s recoupment determinations have been fully litigated. The Office of Administrative Hearings (“OAH”) denied Golden Day’s appeals and ordered Golden Day to reimburse the Department; the OAH Decision is now f