The most recent recession hit many Las Vegas establishments hard. For some, business slowed down, while others had to close their doors for good. All throughout the country the negative economic effects were felt. While conditions have been improving in many parts of the country, some individuals are still struggling with complications caused by the recession.
After an Ohio hospital filed for bankruptcy, a corporate dispute erupted. According to sources, four hospital officials were blamed for the financial breakdown and subsequently sued by the bankruptcy trustee for $15 million. Attorneys for the officials indicated that the economic downturn was to blame, not the officers who volunteered a lot of time and money to benefit the hospital.
However, the plaintiff believes that the hospital wouldn’t have gone under, leaving over $20 million in past due creditor claims, had the former hospital board members acted more prudently in their decision making. Reports indicate that some time prior to the bankruptcy, the hospital sanctioned a venture to expand the hospital. The lawsuit alleges that a study of the hospital’s economic situation would have indicated that the expansion was not a practical project to pursue.
Recently, a judge dismissed the lawsuit which called the officials “reckless.” Given that there was not direct proof that the hospital board members acted negligently, the judge decided not to move forward with the trial.
In business litigation lawsuits, having a lawyer by your side can be invaluable. If you are facing corporate disputes of any kind, consider your interests and contact an experienced professional for assistance.
Source: Times Reporter, “Twin City Hospital suit dismissed again,” Lee Morrison, Nov. 20, 2013