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LAWSUITS NEWS & LEGAL INFORMATION

Henderson County, TX

This is a settlement for the Commercial lawsuit.

Henderson County, TX: (Sep-04-07) East Texas Medical Center Healthcare System (ETMC) filed suit against Henderson County Judge David Holstein, County Attorney James Owen, Henderson County, and the Hospital Authority, over two letters that were sent to East Texas Medical Center. The letters, sent by Owen in 2004 and attorney Charles Clark in 2005, alleged ETMC was in default of its contract with the Hospital Authority. The dispute against ETMC asserted among other things, that the hospital did not provide adequate indigent health care, did not provide adequate insurance and that lands on which ETMC had placed facilities were property of the county. The suit claimed they individually and illegally interfered with the contractual rights between ETMC Athens and the Henderson County Hospital Authority Board. The suit called for a judgment declaring ETMC Athens not in default of its sublease agreement, as Holstein and Owen claimed.

In a settlement reached, Owen cited indigent health care costs that will be paid from the tobacco fund settlement through the life of the agreement. Holstein has placed the figure at an estimated $800 million. Sources state that ETMC is working on the bond issue and has spent $21 million to benefit all parties involved, as it wrote the amount off in charity to benefit Henderson County residents in 2006. The settlement agreement finally resolved the legal battle between East Texas Medical Center Healthcare System and Henderson County. [CEDAR CREEK PILOT: CONTRACT DEFAULT]


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Published on Sep-5-07


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