Homestyle Direct, LLC v. DHS

The Department of Human Services revoked a contractor's eligibility to provide home delivered meals to Medicaid clients because the contractor breached its contract with the department by failing to comply with certain food preparation and delivery standards. The contractor, Homestyle Direct, objected to the revocation, arguing that the standards in the contract were not enforceable because they should have been promulgated as administrative rules. The department rejected those arguments, concluding that whether the standards could have been promulgated as administrative rules was irrelevant to their enforceability as terms of a contract. The Court of Appeals reversed on the ground that the department could not enforce unpromulgated rules as terms of a contract. The Supreme Court disagreed with the appellate court and reversed its decision. The Court affirmed the final order of the department. View "Homestyle Direct, LLC v. DHS" on Justia Law