Judge Orders Mediation of UofL-Norton Dispute over Kosair Children’s Hospital.

Breaking News 11:30 a.m.franklin-co-courthouse

At a hearing this morning in Frankfort, Franklin County Circuit Court Judge Thomas Wingate ordered the University of Louisville and Norton Healthcare to enter mediation to settle their dispute over control of Norton Kosair Children’s Hospital in Louisville. It is my understanding that neither party was adverse to that happening. The Judge appeared influenced by the admissions of both sides that they have been very close to a long-term agreement several times in the past, including at a breakfast meeting yesterday at Dairy Queen!

The Judge is going to request that former Kentucky Supreme Court Justice James E. Keller be the mediator. If Judge Keller is not available (or not available on a timely basis), it appears that each side will be allowed to suggest three mediators from among which the Judge may select one (or not).

Mediation was also strongly suggested by both Governor Steven Beshear and Attorney General Jack Conway in a recent letter to both David Dunn of the University of Louisville and Steven Williams of Norton Healthcare.

Judge Wingate denied a motion by UofL to require Norton to the enjoin Commonwealth of Kentucky as a party to its original suit for Declaratory Judgement over whether UofL has the right to demand that Norton vacate Kosair Children’s Hospital. Norton did not want to “create the optic that is was opposed to the Commonwealth.” UofL’s position was that because the Commonwealth was a signatory to the lease in question, that it must be included in ongoing legal proceedings.

Chief Deputy Attorney General  Sean Riley expressed the Commonwealth’s position that they did not want to be brought into the proceedings at this point. The position of the Commonwealth is as stated in the letter from the Governor’s office: if UofL and Norton can come to an agreement on long-term business issues, that the Commonwealth is willing to make reasonable modifications to the terms of the lease.

Norton made a motion that it be allowed to amend its original Complaint for Declaratory Judgement to reflect recent actions by both sides. This was accepted by the court and continued for a ruling later, if necessary, after the mediation.   It is assumed that all material would be disclosed at mediation.  As it happens, both parties are already at the stage of making claims for damages. As I understand it, Judge Wingate also denied a motion from UofL that would advance those adversarial proceedings. In any event, in the spirit of putting further courtroom action on the back burner, all current dates and deadlines for discovery and hearings are put on hold pending the outcome of the planned mediation.

It was an interesting field trip to Frankfort this morning for me. I will fill in with additional details, court documents, and commentary later. I do not yet have copies of the Judge’s orders.  If I have interpreted things incorrectly, please let me know.

Peter Hasselbacher, MD
President, KHPI
Emeritus Professor of Medicine, UofL
February 12, 2014

Letter from Governor and Attorney General to Norton and UofL, Feb 3, 2014
Motion to require Norton Healthcare to enjoin the Commonwealth, Feb 2014
Motion to require mediation, Feb 2014

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