Judge: Erlanger is owed money
U.S. District Judge Harold Murphy has ruled in favor of Erlanger Medical Center in Chattanooga in its lawsuit against the Hospital Authority of Walker, Dade and Catoosa Counties.
Murphy, of Rome, awarded Erlanger roughly $36.4 million, ruling that Erlanger was owed $20 million in principal, about $4 million in interest and nearly $12.4 million in late fees for the repayment of an original $20 million loan to Hutcheson Medical Center in Fort Oglethorpe.
That loan was part of a 2011 management agreement between the two hospitals. When Hutcheson severed its ties with Erlanger, Erlanger demanded immediate repayment of its loan.
Tom Weldon, attorney for the three-county hospital authority, said he must consult with the board before answering on their behalf but said that while disappointing, the judgment was just one piece of a very complicated legal matter.
“The judge did find us liable, but we are moving forward with our counterclaim,” Weldon said. “Judge Murphy did not rule on the counterclaim — only that the promissory note is due.”
In its countersuit, the hospital authority claims it is owed $141 million for irreparable damage caused by Erlanger’s having breached its contract to manage Hutcheson’s hospital, clinics and other operations.
Murphy’s order was restricted to Erlanger suing for repayment of money it loaned. The judge notes the Hospital Authority’s claims of breach of its management contract are separate from the lawsuit concerning a loan between the two hospitals.
catoosawalkernews. com
Calhoun police to hold firearms class
CALHOUN — The Calhoun Police Department will conduct a free firearms safety and familiarization course on May 21 from 9 a.m. to 1 p.m. for first-time gun owners.
The event will take place at the Calhoun Police Department C.I.D. building training room, 1949 U.S. Highway 41 South.
Anyone interested must register by contacting the Calhoun Police Department at 706-629-1234. Cutoff for registration is May 13. Participants must be at least 21 years old.
www.calhountimes. com