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untanglingwebs
El Supremo
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Lawsuit: Former Flint city attorney claims Hurley officials misspent $200,000 in public money on retreat
By Gary Ridley | gridley@mlive.com
on February 17, 2013 at 6:00 AM, updated February 17, 2013 at 6:08 AM
FLINT, MI -- Hurley Medical Center leaders wasted $200,000 on an unnecessary corporate retreat, according to a lawsuit filed in Genesee Circuit Court by former hospital executive and Flint city attorney Karen Lopez
The claim is just one of multiple accusations levied against the hospitals leadership by Lopez, who alleges that hospital executives, including former Hurley CEO Patrick Wardell, wasted hundreds of thousands of dollars in tax-payer money to pay for an unnecessary corporate retreat and an unauthorized signing bonus for an employee that didn't meet hiring requirements.
The allegations are contained in a complaint filed by Lopez Jan. 9 in Genesee Circuit Court against Hurley, hospital executive vice president and general counsel William Smith and current hospital CEO Melany Gavulic.
Hurley officials declined comment on the lawsuit.
"Hurley does not comment on past or current litigation," Hurley spokesperson Ilene Cantor said in an email to Mlive-Flint Journal.
Lopez alleges that her employment at the hospital ended due to hostile and intimidating behavior by other executives after she spoke out about the possible unlawful conduct and discrimination.
Lopez claims Wardell used hospital money to benefit another executive's career, spending $200,000 of hospital funds on an unnecessary retreat.
The suit claims Wardell authorized the retreat to benefit a then-hospital vice president in conducting a "corporate culture" transformation that she needed for her master's degree thesis.
Wardell left the hospital last year after he was named the new CEO of Cambridge Health Alliance in Cambridge, Mass.
Wardell declined to comment on the allegations, forwarding questions to Hurley staff.
Another hospital vice president was also accused by Smith of creating a "racially hostile work environment."
In May 2011, following Smith's address to the board, Lopez claims Wardell told Smith that the board was planning to strip him of his corporate compliance duties.
"The hostile relationship between Wardell and Smith was disrupting the administration of (Hurley Medical Center)," the lawsuit claims.
The suit claims Smith asked her to report the incidents to State Rep. Woodrow Stanley, D-Flint, to try and put outside pressure on Wardell to step down and that Lopez reported the issues to the former Flint mayor. Stanley's office did not return calls seeking comment on the lawsuit.
In June 2011, Lopez claims Smith delivered a seven page memorandum protesting the board's treatment of him. In response, the lawsuit states the board hired an attorney to investigate the issues raised by Smith and that Lopez told the attorney about what she perceived to be "a policy of race discrimination affecting all minority employees" at the hospital.
Lopez told the attorney that there was a disparity in pay and promotional opportunities at the hospital for non-white employees.
The suit claims that Wardell approached Lopez in September 2011 with an advance copy of the attorney's report claiming that a majority of the board had "lost faith in Wardell and his ability to effectively lead."
Lopez allegedly asked the Hurley board to report the allegations of misspent money to state or federal law enforcement but claims they declined.
After Wardell's departure, Lopez claims the hospital board violated the state's Open Meetings Act when it selected Gavulic as Wardell's successor.
Frances Gilcreast, who serves as a Hurley Board member and president of the Flint NAACP, said she had no comment on Lopez's suit.
Lopez said she sent an email to Gavulic March 28, 2012, complaining that Smith was ignoring her complaints of race discrimination but contends Gavulic never acknowledged her complaint, according to the lawsuit.
The suit claims Lopez contacted the state attorney general's office in April 2012 and told them that she was experiencing retaliation for her complaints about how the violations were being handled by the hospital.
The attorney general's office declined to become involved in the matter, Lopez claims.
On April 10, 2012, Lopez requested that her complaints about Smith be investigated by an outside counsel.
An attorney was hired April 10, 2012, to investigate Lopez's complaints, but Lopez claimed the attorney has done thousands of dollars of work for Smith in the past and was not independent when it came to investigating the allegations.
On April 25, 2012, Lopez's attorney, Loyst Fletcher Jr., sent a letter to Hurley stating that Lopez was subjected to a "hostile intolerable work environment" based on discrimination and retaliation. He also said that Lopez would not participate in the attorney's investigation.
After she was placed on paid leave by Gavulic April 26, 2012, Lopez claims Gavulic sent a letter ordering Lopez back to work June 10, 2012, to participate in the attorney's investigation. Lopez and Fletcher objected.
Following a meeting with a facilitator on June 6, 2012, to reach a severance settlement if her complaints were not resolved, Lopez informed the board that she was being "driven out" of Hurley and that she would not be returning to work.
Fletcher said Lopez has been working to reestablish herself as a private practice attorney since leaving Hurley.
"It's been very emotional for her," Fletcher said.
Lopez is seeking lost wages and emotional damages in the case. |
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Sun Feb 17, 2013 8:23 am |
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untanglingwebs
El Supremo
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Karen Lopez has a reputation for being a fair and honorable attorney. While she can be softspoken, she can deliver a punch on behalf of her clients .
Wardell never really listened to the pleas of the Carriage Town residents to find a suitable solution to the properties owned by Hurley in their area. It appeared Hurley only wanted "demolition by neglect". Lots of secret deals using realtors to purchase land covertly enabled Hurley to move their employee parking lots and enhance the hospital. |
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Sun Feb 17, 2013 8:31 am |
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