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<DIV><FONT size=2><FONT size=2><FONT size=3>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?</FONT></FONT></FONT></DIV>
<DIV><FONT size=2><FONT size=2></FONT></FONT> </DIV>
<DIV><FONT size=2><FONT size=2><FONT size=3>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?</FONT> </FONT></FONT></DIV>
<DIV><FONT size=2><FONT size=2></FONT></FONT> </DIV>
<DIV><FONT size=2><FONT size=2>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?</DIV>
<H2></H2>
<DIV><FONT size=3>W.</FONT></DIV>
<H2></H2>
<H2> </H2></FONT></FONT>
<H2>Infinity Rehab sues Latah Health Services</H2>
<P
style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 14px; MARGIN-BOTTOM: 0pt">Company
claims breach of contract, seeking damages of $170,000 </P>
<P style="MARGIN-TOP: 0pt; FONT-SIZE: 12px; MARGIN-BOTTOM: 0pt">By Omie
Drawhorn, Daily News staff writer</P>
<P style="FONT-SIZE: 10px">Wednesday, March 21, 2007 - Page Updated at 01:56:00
PM</P><SPAN style="FONT-SIZE: 14px">
<P>Infinity Rehab has filed a lawsuit against Latah Health Services seeking
$170,000 in compensatory damages.</P>
<P>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.</P>
<P>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.</P>
<P>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 <STRONG><FONT color=#0000ff>accuses LHS of disposing of
assets</FONT></STRONG> or giving preferential treatment to other creditors.</P>
<P>The lawsuit stated that over the last two years LHS has repaid $410,000 to
certain creditors, but not Infinity Rehab.</P>
<P>Latah County Prosecuting Attorney Bill Thompson said he doesn't believe Latah
Health Services has been selective in repaying its debts to creditors.</P>
<P>"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."</P>
<P>Infinity Rehab's attorney, Randall Peterman of Boise, did not return calls
seeking comment.</P>
<P>A legal response to the lawsuit filed by LHS through attorney Doug Mushlitz
of Lewiston denied Infinity's allegations.</P>
<P>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.</P>
<P>In its response, LHS requested that the court dismiss the complaint and that
it be awarded costs and fees for defending the lawsuit.</P>
<P>Mushlitz declined to comment because of the lawsuit's pending nature.</P>
<P>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.</P>
<P>The official transfer of the building to Gritman Medical Center is scheduled
to occur April 2.</P>
<P><B>Omie Drawhorn</B> can be reached at (208) 882-5561, ext. 234, or by e-mail
at odrawhorn@dnews.com>.</P></SPAN></BODY></HTML>