Attorney Stuart James, special counsel to Walker County, has filed an answer and counter complaint in the case in which Erlanger Health System sued the county.The filing claims that Erlanger could not be a party to an intergovernmental agreement because it is not a party to the agreement. It claims Erlanger Health System "is not a recognized governmental entity in the state of Georgia."
Erlanger sued Walker County, saying it is owed $10 million related to Erlanger's operation of Hutcheson Medical Center that the county agreed to back.
The filing claims that Erlanger could only become a party to the intergovernmental agreement if the state of Georgia took action to allow such action.
Attorney James said, “The state Legislature would have to expressly give those rights in writing and see Erlanger as a governmental entity within the state.
Because such a written agreement doesn’t exist and the State Legislature wasn’t asked to take action, Walker County claims that it is immune from the suit under Georgia law.”
He said, "Walker, Catoosa and Dade Counties entered into an agreement to provide payments that would provide continued healthcare services to their residents; however, the agreement didn’t give any rights to Erlanger or any nongovernmental entity for that matter. To do that, the state of Georgia would have had to take action. Because no action was taken, Walker County claims the contract is void.
Walker County is asking the court to declare the rights of the parties named in the counter complaint for Declaratory Judgment making a determination as to sovereign immunity claims. The county is also requesting the court to determine the respective rights of the parties to the intergovernmental agreement and the scope of that agreement as it applies to the parties to the agreement as well as to counter defendant Erlanger under the laws of the state of Georgia. It is also asking the court to rule that the parties to the intergovernmental agreement are immune from suit because they were not signatories to the agreement.
“We look forward to having this matter brought before the court. We believe the good citizens of Georgia are due answers that will allow their leadership to plan for addressing current and future healthcare needs,” said attorney James.
Attorney James listed "Frequently Asked Questions"
1. Walker County claims in their answer to Erlanger’s complaint that Erlanger violates the Georgia Constitution and principles of sovereign immunity. What is sovereign immunity?
Walker County alleges that it is immune from a suit by Erlanger under Georgia’s doctrine of Sovereign Immunity. According to the Georgia Constitution (1983, Art. IX, Sec. III, Par. I (a) provides: “The state, or any institution, department, or other agency thereof, and any county, municipality, school district, or other political subdivision of the state may contract for any period not exceeding 50 years with each other or with any other public agency, public corporation, or public authority for joint services, for the provision of services, or for the joint or separate use of facilities or equipment; but such contracts must deal with activities, services, or facilities which the contracting parties are authorized by law to undertake or provide.”
2. How does sovereign immunity impact this situation?
Simply put, Erlanger is not a party to the intergovernmental agreement which includes Catoosa, Dade and Walker Counties.
3. Is there a way that Erlanger could become a party of the intergovernmental agreement?
Yes, but only if sovereign immunity is waived by the State of Georgia’s Legislature or by written contract. Walker County alleges a private party (such as Erlanger) that becomes a third-party beneficiary to an intergovernmental contract would destroy the nature and character of the contract as an intergovernmental contract. According to Walker County’s filing, the intergovernmental agreement does not waive sovereign immunity giving rights to Erlanger either by express or implied agreement.
4. Can Erlanger assert a claim for breach of an implied contract?
No. Only a County can waive immunity by entering into a written contract. Unfortunately, even if Erlanger is given any rights under the intergovernmental agreement, the agreement is void as Erlanger is not a governmental entity within the state of Georgia.
5. Did Erlanger have a written agreement with Walker County?
No. Walker County entered into an intergovernmental agreement with the Hospital Authority which is specifically authorized by the Georgia Constitution.
6. Couldn’t Erlanger have their rights declared through an agreement with the parties?
No. The agreement would be void because it was entered in such a manner as to void its terms under the Georgia Constitution.
7. Is Walker County responsible as a party to the line of credit taken out by Erlanger to serve the Hospital Authority?
No. Walker County was not a signatory nor party to the line of credit as outlined. The Hospital Authority cannot assign any rights given to it under the intergovernmental agreement and the County asserts that the intergovernmental agreement is authorized by the Constitution of the State of Georgia.
8. Didn’t Walker, Catoosa and Dade Counties enter into an agreement to provide payment for the purposes of providing continued healthcare services to their residents?
Yes. However, the agreement didn’t give any rights to Erlanger or any nongovernmental entity. To do that, the intergovernmental agreement would have to expressly give those rights in writing or sovereign immunity is preserved under the intergovernmental agreement. Unless the State of Georgia took action to allow this, the contract is void. Walker County claims that Erlanger has no right to make a demand for payment under the intergovernmental agreement. The county also claims that because a written agreement giving Erlanger any rights does not exist, it is immune from the suit under Georgia law.
9. What’s in Walker County’s counter complaint?
Walker County is asking the Court to provide a declaratory judgment. This means the Court “simply declares the rights of the parties or expresses [its] opinion…on a question of law without ordering anything to be done…” Clien v. Kaplan Ga.396, 403, 40 S.E.2d 133
10. What is Walker County requesting from the Court?
Walker County is asking the Court to declare the rights of the parties named in the Counter Complaint for Declaratory Judgment making a determination as to sovereign immunity claims. The County is also respectfully requesting the Court to determine the respective rights of the parties to the intergovernmental agreement and the scope of that agreement as it applies to the parties to the agreement as well as to counter defendant Erlanger under the laws of the State of Georgia. It is also asking the Court to agree that the parties to the intergovernmental agreement are immune from suit because they were not signatories to the agreement.