A recent appellate court decision has upheld an order requiring a nursing home operator to pay significant attorney fees after failing to pay for pharmacy services. The ruling addresses whether the legal costs claimed by the pharmacy provider were reasonable and enforceable under their agreement.
The appeal was filed by Selfridge Leasing, LLC, doing business as Valley Oaks Care Center, in the Eighth Appellate District Court of Ohio on April 16, 2026. The complaint was originally brought by Citywide RX, LLC against Providence Healthcare Management, Inc., Selfridge Leasing, and other related defendants in Cuyahoga County Court of Common Pleas (Case No. CV-23-975447).
According to court documents, Citywide RX entered into a Pharmacy Services Provider Agreement with eleven nursing homes in November 2018. In February 2023, Citywide filed suit alleging that these facilities failed to pay for goods and services rendered under the agreement. The unpaid amount exceeded $300,000. Citywide also sought recovery of reasonable attorney fees as allowed by the contract.
During litigation, Citywide responded to extensive discovery requests and produced over 5,000 pages of documents. The company filed two motions to compel discovery when defendants did not comply with requests; both motions were granted by the trial court. Despite these orders, defendants continued not providing required information, prompting Citywide to file a motion for an order to show cause.
In June 2024, Citywide moved for partial summary judgment on liability against ten defendants including Selfridge Leasing. Although defendants were granted an extension to respond, they did not file any opposition brief. In August 2024, the trial court found in favor of Citywide and awarded money judgments against ten defendants. The judgment included language making it final and appealable.
Citywide then sought partial summary judgment for attorney fees totaling $434,252.95—$383,976.60 billed by its New York counsel Morrison Cohen LLC and $50,276.45 billed by local Cleveland counsel Benesch Friedlander Coplan & Aronoff LLP. Evidence submitted included affidavits from attorneys at both firms detailing hours worked and hourly rates.
Defendants opposed this motion on several grounds: they argued that New York firm rates were excessive compared to local rates; that local counsel’s fees should not be recoverable; that overall hours billed were excessive; and that support staff time should not be compensated under the agreement. They requested a two-thirds reduction in total fees but did not request a hearing on these matters.
The trial court ultimately awarded Citywide its requested amount of attorney fees—$39,477.54 per defendant—with each portion allocated between New York and local counsel according to work performed.
The written opinion cited provisions from the Pharmacy Services Provider Agreement allowing recovery of reasonable attorney fees and costs for enforcement actions: “If either party brings an action against the other party to enforce any condition or covenant of the Agreement, the substantially prevailing party shall be entitled to recover its court costs and reasonable attorneys’ fees incurred in such action.”
On appeal before Judge Mary J. Boyle with Judges Michelle J. Sheehan and Kathleen Ann Keough concurring—the panel reviewed whether those attorney fee awards were unreasonable as claimed by Selfridge Leasing.
The appellate opinion noted that while Selfridge accepted liability under the agreement’s terms for some fee award, it challenged only whether amounts awarded were reasonable given differences between New York and Ohio billing rates and other factors such as block billing or use of multiple law firms.
The appellate panel found that affidavits from Citywide’s attorneys met evidentiary requirements under Ohio Civil Rule 56(C), supporting both reasonableness of hours worked and rates charged—including associate rates ranging from $750 per hour at litigation start up to $850 per hour after promotion during proceedings spanning 2023 through 2025.
By contrast, Selfridge relied primarily on outdated Ohio State Bar Association survey data from 2018 suggesting lower average hourly rates for experienced lawyers in private practice ($250/hour) but provided no evidence or caselaw specific enough or current enough to refute Citywide’s documentation.
Citing precedent cases Bittner v. Tri-County Toyota Inc., Phoenix Lighting Group L.L.C., and others regarding calculation of ‘lodestar’ amounts (reasonable rate times hours reasonably worked), the panel concluded there was a strong presumption supporting such calculations when supported by detailed records—as here—and rejected arguments requiring expert testimony or limiting recovery due solely to geographic rate disparities.
Ultimately affirming summary judgment for Citywide RX on attorney fee awards against Selfridge Leasing LLC d.b.a Valley Oaks Care Center (and other co-defendants), Judge Boyle wrote: “We agree with the trial court’s finding that Citywide demonstrated that the rates charged as well as the hours expended were reasonable considering length of litigation…discovery…and delay…solely attributed to defendants.”
Attorneys listed include Michael J. Meyer (Benesch Friedlander Coplan & Aronoff LLP) representing appellee Citywide RX LLC; G. Brenda Coey (The Coey Law Firm LLC) representing appellant Selfridge Leasing LLC d.b.a Valley Oaks Care Center; Judges explicitly named are Mary J. Boyle (authoring judge), Michelle J. Sheehan (administrative judge), Kathleen Ann Keough (concurring). Case ID is No. 115352.
