Breaking News. June 16, 6:20 pm.

It’s back to the mattresses.

It’s official. The court-ordered mediation between the two long-time partners over control of Norton-Kosair Children’s Hospital has broken down. Some additional details are becoming available but I do not yet have the independent report to the court by the mediator, Judge Bill Graham. Apparently only two mediation sessions were held on May 6, and June 4. It will be instructive and valuable to the community to learn what the barriers to compromise were and what the circumstances were that caused Judge Graham to report to the court that the mediation was unsuccessful. It is my understanding that UofL declined to continue the process. [As of June 18, The University has not responded to my email request for confirmation or comment.]

Some additional court documents are becoming available. The failure of mediation is apparently so definite, that Norton has petitioned the the court to lift its stay of Feb 14 to allow legal procedures to continue. I will analyze materials as I am able and will place links below to new documents as I obtain or receive them. Come back to see any additions and lend your insights in the comment section.

This is truly a shame.

Peter Hasselbacher, MD
President, KHPI
Emeritus Professor of Medicine, UofL
June 16, 2014

I am assembling and updating court and litigation documents below for the convenience of all. Click the “Continue Reading” button to access the material.

Documents Available: (Newer first)

•  Filings by Kentucky Attorney General to become an intervening defendant in case of Norton Healthcare v. UofL, Aug 6, 2014.

•  Filings by Kentucky Attorney General to become an intervening plaintiff in Kosair Charities v. Norton Healthcare, Aug 4, 2014.

•  Norton’s motion to lift stay to allow court action by both parties to go forward. Actions had been stayed pending outcome of mediation.

•  Norton’s motion to amend its complaint to include that UofL defaulted on an oral agreement of settlement of Jan 20, 2014. Motion had been put on hold pending mediation.

•  Norton’s amended complaint submitted June 16, 2014. This submission was held pending mediation as per the court order available below.

Exhibits to Norton’s First Amended Complaint (submitted 6-16-2014)

•   All Exhibits A-J  (pdf 14.1 mb)
A. UofL notice of default and claim on hospital. (8-27-2013).
B. Norton’s response to notice of default. (9-4-2013).
C. Master affiliation agreement between UofL and Norton. (2008).
D. Lease on land beneath Children’s Hospital. (1918).
E. Agreement to enter lease. (1981).
F. Attorney General’s analysis of proposed UofL-CHI merger. (12-29-2014).
G. Letter of Intent for venture between Norton and Univ. of Kentucky. (8-22-2013).
H. Emails between Dr. Dunn and Mr. Williams on status. (Jan 20&21, 2014).
I.  Email Mr. Williams to Dr. Dunn. (1-20-2014).
J. Email Dr. Dunn to Mr. Williams. (1-21-2014).

•  Norton’s motion to dismiss the University’s counterclaims submitted June-16, 2014.  This and the amended complaint give Norton’s version of what has been happening between the two organizations and lends insight into what the stumbling blocks are.  I invite the University of Louisville to offer their version of events.

•  Court Order for mediation from Judge Wingate in Franklin Circuit and placing all existing court deadlines on hold pending its outcome. Feb 14, 2014

• UofL’s Answer, Affirmative Defenses, and Counterclaims Against Norton Healthcare, 1-29-2014 (pdf 2-2 MB)

•  Exhibits to UofL’s Answer of 1-29-2014
A.  KentuckyOne withdraws language of right of first refusal to enter pediatric affiliation agreement with university of Louisville, 9-10-2103.
B.  Lease on land under Children’s Hospital, 12-8-1981.
C.  Agreement to enter lease agreement. 8-12-1981.
D.  Affiliation Agreement, 1962.
E.  Agreement for Provision of Pediatric Critical Care … July 2006
F.  UofL threatens breach of lease if not given access to Norton’s Board of Trustees Executive Meetings including closed executive sessions, 2-14-2011.
G.  Norton’s attorneys argue such full access is illegal and improper, 2-15-2011.

Other materials and legal documents relevant to this controversy can be seen in earlier articles in this series. Click the Norton Kosair Children’s Hospital category in the sidebar or below. My intention is to consolidate such items here as well.