Living Alternatives for the Developmentally Disabled, Inc v. Department of Mental Health

Plaintiff appeals as of right from a Court of Claims order dismissing its breach of contract action against the Department of Mental Health (dmh). We affirm.

Plaintiff operates group homes for the developmentally disabled. Plaintiff entered into contracts with the dmh for the operation of the homes. Following an audit performed for the years 1986-87 and 1987-88, defendant determined that plaintiff had misallocated funds from one scheduled account into another scheduled account and that the monies would be recouped in the form of a reduction of future funding.

Plaintiff contested the auditor’s…