Two-and-a-half months after JAMS Arbitrator Judge Rebecca Westerfield awarded Marin General Hospital (MGH) more than $21 million in its dispute with Sutter Health, she has declared the hospital and Marin Healthcare District to be the “prevailing parties” that are entitled to seek reimbursement from the losing party (Sutter) for attorneys’ fees. Robert Heller who was dismissed from the case prior to the beginning of proceedings by the arbitrator was also named as a “prevailing party.”
MGH now has until September 10 to file a brief detailing and applying for the additional funds.
Marin General Hospital (MGH) Chief Executive Officer, Lee Domanico, said, “We are gratified with this decision, and expect the hospital to receive significant compensation for the costs associated with forcing Sutter to live up to their contractual duties as they exited the hospital management contract. As Judge Westerfield said in her decision, Sutter willfully and purposely failed to meet their contractual duties as well as their duty of good faith and fair dealing.”
Domanico added, “This decision contradicts Sutter Health’s claim that they ‘won’ the arbitration. Marin General is the prevailing party. That means we won and Sutter lost.”
According to MGH spokesperson Jamie Maites, the hospital is still working out specific plans for the use of the awarded funds.