Former Wrangell Medical Center administrator Noel Rea has filed an answer in the lawsuit filed against him and six members of the recalled WMC Board of Directors – and made a counterclaim of his own in the matter.
In the filing, Rea’s attorney, David Shoup of Anchorage, denies that Rea had any advance knowledge of the board’s action in firing him on June 20 and denies that a Release of Claims and Covenant Not to Sue were attached to his most recent employment contract.
The borough’s claim for a declaratory judgment, voiding a second amendment to Rea’s contract, is also being challenged by Shoup’s filing, saying that the city is not entitled to a ruling that the amendment is void or unenforceable.
The answer also states that the borough had no legal authority to stop a June 21 wire transfer to Rea. In their initial complaint, the borough alleges that former board president Mark Robinson “ordered” interim administrator Olinda White to cancel the issuance of a check and to wire the money to Rea.
The recalled board members, through their attorney, Steven Rose of Anchorage, state that White agreed to cancel a check and make a wire transfer, but that Robinson’s tone, which was alleged by the borough to be aggressive in nature, were untrue. Rea’s answer did not address the issue, saying the paragraph was, “addressed to other parties and Rea is not required to respond.”
In his counterclaim against the borough, Rea is asking the court to find that the former WMC board acted within their authority to enter into the Second Amendment to his employment contract, and that he is entitled to two severance package payments – totaling $1,041,577.12.
Rea and his attorney allege that the WMC board, under parts of Section 3.32.030 of the Wrangell Municipal Code, has “full power and authority to operate and maintain the hospital; to employ an administrator who shall have the active management of the hospital, subject to the supervision and control of the board.”
The counterclaim also states that the city’s code provides that the “(WMC) board shall determine all salaries and wages to be [p]aid to each classification of labor employed,” and that although the board is required to submit WMC’s budget to the Borough Assembly, it is only, ‘to allow the assembly to provide necessary funds for the operation and to use excess revenue of the hospital in the general fund of the borough. The code does not require the assembly to fund the WMC.’”
Rea and his attorney also claim that no provision exists in the city code or charter requiring the Borough Assembly to review, approve, or even see WMC employment contracts.
“Such power is vested in the WMC board,” Rea’s filing states directly.
The document also states that following Rea’s termination, he was paid the first installment of his severance package, amounting to $520,788.56 – and that he is owed an additional $520,788.56 in June 2013.
Rea is also asking that the case against him be dismissed, and that the court award him attorney fees in the matter.
Neither Rea nor his attorney could be reached for comment.
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