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Press Releases"On behalf of my client, I am extremely gratified the California Supreme Court has upheld the District court's dismissal of the lawsuit. Many public hospitals throughout the state have been able to continue operating in the current competitive environment only because changes in the Local Health Care District Law have allowed them to affiliate with nonprofit health care systems. If the arguments of the District had been accepted by the Supreme Court, many of these affiliations would have been jeopardized." McDonough, Holland & Allen shareholder Richard E. Brandt, upon learning the outcome of the lawsuit that pitted the Marin County Healthcare District against Marin General Hospital and its nonprofit parent corporation, Sutter Health. Brandt acted as Sutter Health's lead attorney in the case. The following press release details the lawsuit and the outcome of the case. High Court Terminates Lawsuit Against Marin GeneralGREENBRAE, Calif., February 25, 2003 -- The California Supreme Court yesterday terminated the Marin Healthcare District's lawsuit against Marin General Hospital. The state's highest court declined the District's request to review a lower court's decision that essentially dismissed the case. After more than five years of court proceedings and several appeals, the District Board's lawsuit to break its 30-year lease with MGH has failed. No other court can hear the case. CEO Margaret Sabin said, "Needless to say, we are very pleased that the court upheld the decision. We believe the court's decision was the correct one. This is an extremely positive development for the entire Marin community. We can now move beyond conflict and expensive lawsuits - now we can focus all of our efforts on our number one priority - patient care. "We are now able to set aside several years of contentious and costly litigation and concentrate all of our efforts on making MGH the best possible hospital for this community. This includes continuing on our declined efforts to bring new programs and services to Marin residents - such as the stroke program and state of the art heart care." It also means that Marin General will be able to focus on planning efforts to create a hospital for future generations, Sabin said. "District Board members have been invited to join our planning groups and we will be making routine progress reports at District Board meetings. "Our fervent hope is that the District Board will now move beyond this history of conflict and work together with us in a positive, productive manner so that all Marin residents will benefit." At issue was whether the District's lawsuit - filed in November 1997 to break a lease agreement it signed with MGH in 1985 - could stand the test of time. The lawsuit alleged a conflict of interest on the part of two of the District's own representatives who subsequently went to work for MGH. MGH had steadfastly denied that a conflict of interest existed. A lower court upheld MGH's argument that the conflict of interest claim must be dismissed because it was barred by the statute of limitations - 12 years had passed between the date the lease was signed and the filing of the District's lawsuit. The District Board appealed this decision to the Court of Appeal in 1999. That court denied the appeal in November 2002, issuing an extremely strong statement upholding the statute of limitations. The District then asked the Supreme Court to review the decision. |
MHALaw Search KEY CONTACTSTraci Stuart Vice President Blattel Professional 415.397.4811 Melinda Faith Account Executive Blattel Professional 415.397.4811 Jill Okimoto Marketing Director 916.325.5803 |
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