City offers to settle with Rea, recalled members for $250K

The end could be in sight for litigation filed by the City and Borough of Wrangell against former Wrangell Medical Center administrator Noel Rea and six recalled members of the former WMC Board of Directors.

In an Oct. 25 press release Borough Manager Tim Rooney said the case would reach its conclusion when all parties have signed an agreement spelling out terms that will see a return of funds to the city.

“Based on direction provided by the Borough Assembly on the afternoon of October 8, 2012, the City and Borough of Wrangell has accepted a settlement offer from former Wrangell Medical Center Administrator Noel Selle-Rea and six recalled members of the Wrangell Medical Center Board of Directors,” Rooney’s press release states.

According to the terms of the pending agreement, the settlement agreement will require the return of $250,000 to the City and Borough of Wrangell and dismissal of the Borough’s lawsuit and Mr. Selle-Rea’s counterclaim entirely with prejudice, meaning the Borough and Wrangell Medical Center cannot seek further return of monies from Rea and the recalled board members and Rea cannot seek any further payments from the Wrangell Medical Center.

The settlement offer also includes a requirement that both parties agree to an anti-disparagement clause and that they submit that there was no wrongdoing by any of the parties involved.

No mention was made in the press release regarding an iPad and laptop computer the city had been seeking to be returned from Rea.

“Our community has struggled emotionally since the events of the evening of June 20, 2012 and I am looking forward to a time of healing and the bright future ahead of us,” Rooney added. “I will continue to work with the Borough Assembly, the newly elected Wrangell Medical Center Board of Directors, as well as USDA Rural Development, in moving the Wrangell Medical Center and Long Term Care Replacement Facility forward.”

According to Rooney, the settlement agreement will be made public after each of the parties sign it – and a Stipulation for Dismissal with Prejudice is filed.

Rooney would not offer direct comment on the story by deadline.