[Vision2020] Here's another fine mess you've gotten us into, Ollie!

[Art Deco]

Does anyone care to speculate what is going to happen after reading the below article and/or how much it will cost Latah County taxpayers?

For example, does anyone know if there was a title search down before the transfer to Gritman, and if so, whether any outstanding liens were found? 

Does anyone know if the Board of Directors of LHS were covered by Errors and Omissions insurance during the time of the transfer of the facility to Gritman?
W.

Infinity Rehab sues Latah Health Services
Company claims breach of contract, seeking damages of $170,000 

By Omie Drawhorn, Daily News staff writer

Wednesday, March 21, 2007 - Page Updated at 01:56:00 PM

Infinity Rehab has filed a lawsuit against Latah Health Services seeking $170,000 in compensatory damages.

According to the lawsuit, Infinity Rehab and Latah Health Services entered into a contract in February 2006 for the company to provide therapy services at the since-closed facility. Infinity Rehab contends that contract has been breached by Latah Health Services' refusal to repay its debt.

Infinity has billed Latah Health Services monthly for its services but LHS has not made the payments, according to the lawsuit, which was filed in January.

The lawsuit also accuses LHS of intending to "delay or defraud any creditor or other person of his demands" by writing off $320,000 as uncollectible bad debts, and accuses LHS of disposing of assets or giving preferential treatment to other creditors.

The lawsuit stated that over the last two years LHS has repaid $410,000 to certain creditors, but not Infinity Rehab.

Latah County Prosecuting Attorney Bill Thompson said he doesn't believe Latah Health Services has been selective in repaying its debts to creditors.

"In Idaho if you don't have enough assets to pay creditors you can't go hiding evidence," he said. "From the county's perspective I don't know of any evidence to support that. I'm not aware of anything inappropriate."

Infinity Rehab's attorney, Randall Peterman of Boise, did not return calls seeking comment.

A legal response to the lawsuit filed by LHS through attorney Doug Mushlitz of Lewiston denied Infinity's allegations.

Infinity's complaint failed to state a claim upon which relief may be granted, according to the response. The response also stated that binding arbitration of this matter must happen before litigation in federal court occurs, according to the contract between Infinity and Latah Health Services.

In its response, LHS requested that the court dismiss the complaint and that it be awarded costs and fees for defending the lawsuit.

Mushlitz declined to comment because of the lawsuit's pending nature.

Latah Health Services Board of Directors Chairman Greg Mann said he didn't have any recent figures, but at the last count the facility was more than $300,000 in debt. On Feb. 6 Latah County voters approved the sale of the Latah Health Services facility and the property it sits upon to Gritman Medical Center for $1. The ballot language also included removal of a reversionary clause that restricted the building's use to health care.

The official transfer of the building to Gritman Medical Center is scheduled to occur April 2.

Omie Drawhorn can be reached at (208) 882-5561, ext. 234, or by e-mail at odrawhorn at dnews.com>.
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