Mark Kindt wrote:Are there documents or other evidentiary sources to establish that Lakewood public officials (council-members) were advised by LHA or its board members that LHA would file for bankruptcy if city council did not vote in favor of the Master Agreement?
If supportable, this is a tremendously serious claim.
Mr. Kindt,
The short answer to your question is: Yes.
Below are some documents that suggest that Council was given an ultimatum and which also support the most direct evidence of the threat by Tom Gable that comes from a confidential source.
As folks read these statements, keep in mind that the city admits that LHA’s purported intention to file for bankruptcy was discussed in executive session--it was kept from the public until very late in the process—presumably to create a false sense of “urgency.”
Also keep in mind that Summers, Bullock and Madigan "were" LHA---Whatever Lakewood decided, LHA would have to follow them--So, feckless O'Leary had it all backward. Summers ran over the intellectually and morally weak O'Leary et al.
I. Butler/O’Leary et al Court Filing.
On December 21, 2015, Attorneys Kevin Butler and Robert Cahill both signed a pleading in Skindell v. Madigan in which they made following claims:
“
Finally, it cannot be overlooked that City Council considered in executive session the distinct possibility that its tenant at Lakewood Hospital, LHA, which was approaching insolvency, could soon file for bankruptcy protection in the event the City would have failed to permit a modification of LHA’s obligations to run an inpatient hospital.” Defendants’ Brief n Opposition to Plaintiff Skindell’s Motion For Temporary Restraining Order and Preliminary Injunction at page 10.
“
LHA must in the very near future cease operation of Lakewood Hospital or it will be forced to seek other recourse, including the very real possibility of declaring bankruptcy. Any sort of delay in putting the proposed master agreement into effect, should City Council vote to approve Ordinance 49-15, would likely result in LHA ceasing operations of its own volition and seeking bankruptcy protection.” Brief at p. 15
II. Cahill/O’Leary Representations to the Court
Also, from the transcript of the hearing of Skindell v Madigan, Attorney Cahill (with Butler at his side) made the following claims to the Court:
“
The city of Lakewood, Cleveland Clinic are aware from representations going back months now that a bankruptcy filing could be imminent if a deal cannot be reached timely, and the winding down of Lakewood Hospital can begin to stop that bleeding. Should there be any delay in finality of a decision on plaintiff's challenge, there is a very real threat that Lakewood Hospital Association will in fact file for bankruptcy likely killing this deal in its entirety, and instead of a brand new facility, medical facility with an emergency room, the city of Lakewood is facing an empty shell, a building at which nothing is happening and no funds to do anything with it.” TR. Page 7-8
III. Butler’s Sept 4, 2015 Letter to Citizens:In his letter placed on the city website and published in the Observer on September 4, 2015, Butler wrote the following scenario:
“
LHA is unable to continue to operate the hospital and elects to file for bankruptcy. A bankruptcy court could release LHA from its obligations under the lease and the definitive agreement and the city would once again be left without a partner to operate the hospital and the hospital property (with capital needs in excess of $91.5 million).”
Note that Butler’s claim is a cunard, because LHA would have to return all of its assets to the City, including the $50M portfolio held at LHA and the $30M LHF portfolio. Ironically, Lakewood will receive less than $20M under the Master Agreement,
so bankruptcy would have been preferable for the city.
IV. Butler & O’Leary et al. Responses to Records Requests:F
rom: "Butler, Kevin" <Kevin.Butler@lakewoodoh.net>
To: 'Brian Essi' <bjessi@sbcglobal.net>; "Petrus, Jeannine" <Jeannine.Petrus@lakewoodoh.net>; "Hagan, Mary" <Mary.Hagan@lakewoodoh.net>
Cc: "Summers, Mike" <Mike.Summers@lakewoodoh.net>; "O'Leary, Sam" <Sam.OLeary@lakewoodoh.net>; "Nowlin, Ryan" <Ryan.Nowlin@lakewoodoh.net>; "Anderson, David" <David.Anderson@lakewoodoh.net>; "Marx, Cynthia" <cindy.marx@lakewoodoh.net>; "Bullock, Tom" <Tom.Bullock@lakewoodoh.net>; "Litten, John" <John.Litten@lakewoodoh.net>; "O'Malley, Daniel" <Daniel.OMalley@lakewoodoh.net>; "Swallow, Jennifer" <Jennifer.Swallow@lakewoodoh.net>
Sent: Wednesday, February 3, 2016 10:18 PM
Subject: RE: Public Records Request Concerning Wind-Down Costs, RFPs and Bankruptcy
Mr. Essi,
We have responded to your Dec. 13 8:35 a.m. records request. We are working on a response to your Dec. 13 9:15 a.m. records request.
I’ve reproduced your Jan. 9 2:54 p.m. and Dec. 13 1:45 p.m. records requests below for clarity, and have responded following each one:
1. All records of communication of a threat by Lakewood Hospital Association (LHA) or any representative of LHA that LHA might file for bankruptcy protection. Response: We cannot produce LHA records that are not public records. To the extent you mean records of communication of a threat by LHA to the city that LHA might file for bankruptcy protection, we have found no such written records. Otherwise, please see the record linked here: http://www.onelakewood.com/wp-content/u ... 2015-1.pdf
From: Butler, Kevin
Sent: Friday, July 15, 2016 3:39 PM
To: 'Brian Essi'
Cc: Petrus, Jeannine; Strachan, Shannon
Subject: RE: Public Records Requests --PRR1 to PRR 173
Mr. Essi:
In No. 128 of your March 15, 2016 public records request, you ask for “All records, notes, and communications – electronic or otherwise – relating to any representation by the LHA, or any representative of the LHA, regarding bankruptcy.”
My email to you of April 4, 2016, at 8:59 p.m. should be fully responsive to this request. Nevertheless, I’m obligated to remind you that because it seeks information “relating to” another thing, your request is vague, overly broad and/or ambiguous, and is therefore, to that extent, denied. The Ohio Supreme Court has held that a public records request must describe the records desired with reasonable and sufficient clarity and not be overly broad and ambiguous. State ex rel. Morgan v. New Lexington, 112 Ohio St.3d 33, 2006-Ohio-6365, ¶29, quoting State ex rel. Fant v. Tober, 68 Ohio St.3d 117 (1993). Furthermore, a governmental office has no duty to “seek out and retrieve those records which would contain the information of interest to the requester.” Fant, 1993 Ohio App. LEXIS 2591 at *4 (8th Dist. Apr. 28, 1993); aff’d 68 Ohio St.3d 117 (1993). Finally, a public office is under no obligation to search for records containing selected information. State ex rel. Thomas v. Ohio State University, 71 Ohio St.3d 245 (1994).
This completes our response to No. 128 of your March 15, 2016 request.
Best wishes,
Kevin M. Butler, Director of Law
City of Lakewood | Law Department
(216) 529-6034
kevin.butler@lakewoodoh.netV. O’Leary Emails to Constituents in December, 2015
LKWD—PRR132-00079: On Dec 31, 2015, at 7:32 AM, O'Leary, Sam <Sam.OLeary@lakewoodoh.net> wrote:
Ms. Bradley,
Thanks for reaching out on this important issue.
I voted to support a new health care future for Lakewood because the current hospital
could not be sustained, and there was no other alternative that was viable or prudent.
It was clear that LHA (the entity to whom the City of Lakewood leases the hospital)
would file for bankruptcy this month or next, unless there was a clear path forward
toward a different outcome
LKWD-PRR132_00335 From: Sam O'Leary [s.t.oleary@gmail.com]
Sent: Monday, December 07, 2015 1:00 PM
To: April Stoltz
CC: sam.oleary@lakewoodoh.net
Subject: Re: LHA Again Slams The Door To New Offer/City Council Mtg/Let's Jam!
April,
As I mentioned when we had tea the other night, it is simply too late. LHA would file for
bankruptcy before such a deal could be completed.