Federal Judge Orders Walker County To Pay Erlanger $8,705,000, Plus Interest; Question Of Attorney Fees And Expenses To Go To Jury

  • Tuesday, August 23, 2016

Federal Judge Harold Murphy, in a 63-page ruling handed down Tuesday, ordered Walker County, Ga., to pay the Erlanger Health System $8,705,000, plus interest, on the Hutcheson Hospital debt.

Judge Murphy, of Rome, Ga., said the question of attorney fees and expenses owed Erlanger by Walker County should be decided by a jury trial.

Walker County and Catoosa County earlier agreed to back a $20 million loan to Erlanger at the time it was operating Hutcheson. The Fort Oglethorpe hospital later went into bankruptcy.

Erlanger began to seek the return of its $20 million after the Hospital Authority board of Dade, Walker and Catoosa counties terminated its operating agreement.

Catoosa County earlier settled with Erlanger.

Walker County got a credit of $1,295,000 on the $10 million owed when Erlanger received some payment for its Hutcheson collateral in the bankruptcy.

Erlanger has also won a judgment of $36,379,968.20 against the Hospital Authority, which turned to Walker and Catoosa to pay.

Attorney Stuart James of Chattanooga, representing Walker County, said the decision will be appealed.

He said, "Walker County is not surprised at the ruling made by Judge Murphy on the Erlanger motion for summary judgment.  With respect to Judge Murphy, Walker County takes issue with that ruling as it is entitled to do in our system of justice.  Walker County is, therefore, going to appeal the ruling and expects to file the appropriate notice of appeal tomorrow

"In making the appeal Walker County intends on requesting the 11th Circuit Court of Appeals to certify the questions raised by Erlanger and responded to by the county to the Georgia Supreme Court.  Walker County will request the 11thCircuit to send the case to the Georgia Supreme Court so it may address the issues raised in the motion for summary judgment and the ruling on the motion for summary judgment.

"The Court has given its reasons for granting the summary judgment.  In our system of justice parties often disagree with what judges say in rulings like this one. When a disagreement arises over an issue of law, as in this case, a party is entitled to appeal the Court’s decision. Walker County has to exercise that right of appeal so as to protect the interests of its taxpayers."
 

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