Questions arise over hospital lawsuit

DAVE MOSIER/independent editor

Yet another lawsuit has been filed in Van Wert County Common Pleas Court in the ongoing fight over a land transfer agreement related to Van Wert County Hospital and its surrounding property. This time, though, at least some of the plaintiffs in the suit say they were not only unaware of, but did not authorize, the legal action.

The lawsuit, filed ostensibly on behalf of the Van Wert County Hospital Commission, is the second legal action taken this month in the continuing hospital property wrangle. Earlier in April, the Van Wert County Hospital Association –  charged with operating the hospital – filed a writ of mandamus against both the Hospital Commission and the Van Wert County Board of Commissioners in an attempt to force them to complete paperwork necessary to finalize the land deal.

In the newest action, Lima attorney William Balyeat, appointed March 14 by Common Pleas Judge Charles D. Steele to act on behalf of the Hospital Commission in place of County Prosecutor Charles F. Kennedy III, filed an action naming the Hospital Commission and Commission member Farrel Krall, individual as plaintiffs in the case against the Hospital Association, claiming that the association failed to honor some of the terms of its hospital lease, including providing audited financial statements and an appraisal of the hospital property, required as part of the lease agreement, and sought to compel the Hospital Association to provide those documents to the plaintiffs (see editorial on this issue on the Opinion Page).

Kennedy requested he be replaced, citing a possible conflict of interest between his roles as legal counsel to both the commissioners and the Hospital Commission.

The new lawsuit threatens the Hospital Association with termination of its lease – something that would prohibit the organization from operating a hospital at the current location — although ending the lease would also have to have the consent of the county commissioners.

Despite the filing of the latest lawsuit, serious questions arise when trying to ascertain whether Balyeat has official authorization from the Hospital Commission to even file the suit.

Both Commission Chairman Bill Ludwig and Vice Chair Mark Hartman expressed surprise Thursday afternoon when informed that a lawsuit had been filed on their behalf and noted that they had not authorized or requested such an action. Balyeat said during a telephone interview Thursday afternoon that, although he received no official authorization from the Hospital Commission to file the lawsuit, he feels the mandate from Judge Steele to act in the Commission’s best interests was enough to empower him to commence the legal action.

He did note, though, that Hospital Commission members could decide to have that group removed as a plaintiff in the suit. Doing so would also call into question Balyeat’s right to act on their behalf, as well as who would pay the Lima attorney’s $170-an-hour legal fees now being assessed to the county as part of Judge Steele’s decision to appoint him.

When contacted Thursday afternoon, Hospital President/CEO Mark Minick questioned whether there was appropriate authorization for the suit. “We think the complaint is without merit … there are a number of flaws,” he said, adding, “There are a number of serious questions regarding the legal action.”

Minick also disputed the facts of Balyeat’s lawsuit, saying the financial documents requested in the complaint are readily accessible in the commissioners’ office — which also is the mailing address of the Hospital Commission. The Van Wert independent was able to verify through Commissioners Clerk Larry Clouse that the documents were available in that office.

Furthermore, Minick said, a member of the Hospital Commission also served on the Hospital Association board for decades — in fact, up until the transfer agreement fight began — and received the same financial documents being sought in the lawsuit.

Minick went on to say he is keeping members of the Hospital Association Board of Trustees fully informed of the ramifications of the latest legal action and has sent a copy of the lawsuit to the hospital’s insurers, who will ultimately make the decision on whether to defend the hospital against the suit.

The hospital president also said he feels the lawsuit would lead to “a healthy discussion” when the Hospital Association Board of Trustees meets on Monday.

Still pending is the writ of mandamus, filed April 8 by the Hospital Association over the lack of action in finalizing the transfer agreement, which was adopted by both the Hospital Commission and county commissioners. No legal challenges have been filed to either of those actions.