A judge has ordered a Michigan hospital to pay more than $2.7 million as a result of a lawsuit involving plaintiffs who combined to loan the hospital nearly $2 million. The February complaint against Doctors Hospital in Pontiac, Mich., sought principal, interest, contractual costs and attorney fees.
The plaintiffs included Dr. Surindar Jolly, who had been a member of the hospitals four-person board of directors, as well as Sanjay Jolly and Shree Investment Group. Oakland (Mich.) Circuit Judge James Alexander found no material questions of fact in dispute in the case and granted a summary disposition motion.
"The maturity date of each note has passed and plaintiffs have demanded repayment," Alexander wrote in his ruling. "And the parties specifically agreed that any delay in seeking repayment did not affect plaintiffs ability to demand repayment now."
Mark Jewett, president and CEO of Doctors Hospital, declined comment. The hospital had argued that verbal agreements were in place to delay repayment but Alexander ruled that the argument was inconsistent with written language in the agreements and, even if the verbal agreements were considered, they still would not matter because of a requirement that such modifications be made in writing.
Doctors Hospital "fails to allege that any writing exists," Alexander wrote. [Doctors Hospital] also fails to identify any consideration supporting the alleged modifications. As a result, the court rejects [the hospitals] claim that the purported oral modifications modified the parties written agreements.
The hospital argued that there were ambiguities regarding whether some of the notes were actually loans and further argued that, because the plaintiffs waited years in some cases to enforce repayment rights, their claims are subject to "equitable estoppel."
"But, as stated, the parties specifically contracted that any delay in demanding repayment did not affect the plaintiffs collection rights, the judge wrote.
The lawsuit was one of several filed against the hospital in recent years regarding finances, according to the Oakland Press. As of last June, the hospital had been ordered to pay out nearly $1 million in some of those suits, while the outcomes of others were not listed in court documents.