Valley Voice Newspaper

Tulare - Tulare Local HealthCare District officials and Lucy Reimche, its former chief financial officer, negotiated a $600,000 settlement four months ago, but the lawsuit remains unresolved and is heading toward a court hearing.

Reimche, who alleged employment violations when she filed suit against the district and former Chief Executive Officer Bob Montion in 2006, has asked Tulare County Superior Court Judge Lloyd Hicks to enforce the settlement all parties agreed to in writing on Jan. 15, following a full day of mediation.

A hearing on the matter is set for 8:30 a.m. next Thursday in Department 10 of Tulare County Courthouse in Visalia.

“I consider it [the case] settled and I'm going to court to get the agreement enforced,” said Reimche's attorney, Shelley G. Bryant of Fresno.

Bryant contends the mandated formal settlement and release agreement the hospital developed after the mediation session attempts to expand the scope of the original settlement and said Reimche has refused to sign it.

The original agreement was signed Jan. 15, by Reimche, Bryant, Dennis McCarthy, who is the hospital district's Monterey-based attorney, and John Church, the hospital's interim chief financial officer. Court records indicate the settlement called for:

• Tulare District to pay Reimche $600,000 and for each party to cover its own attorneys' fees and costs.
• A formal settlement and release agreement “containing terms and conditions commonly used for the resolution of employment disputes.” The mediator identified points to be covered and then added it would also contain “such other terms as are appropriate for the resolution of the dispute.”
• A separate agreement between Reimche and Montion and a mutual release of claims they might have against each other.
• A mutual release of claims between Reimche and her former attorney, Leonard Herr, who is now the hospital's general counsel.
• Ratification of the formal agreement by the hospital board.

The language in the formal settlement and release agreement drawn by the hospital required Reimche to dismiss the complaint she filed with the California Bar Association against Herr, who dropped her case against the health care district when his firm was hired as the district's general counsel. Herr, in turn, would have to forego his claim against Reimche for unpaid attorney fees.

According to court records, Reimche did not want to drop her action against Herr and argued, through her attorney, Bryant, that California's Rules of Professional Conduct prohibits a settlement that blocks the reporting of a violation of these rules.

Records also indicate the hospital district agreed with that argument and Herr is now unwilling to waive claims against Reimche.

The arbitrator working on the case said the portion of the settlement involving Reimche and Herr could be severed from the original agreement and handled separately and the parties have agreed to do this.

Bryant, in his motion to enforce the original agreement, said the hospital is refusing to pay per the original agreement because it does not believe that document is binding and because Reimche continues to refuse to sign the longer new agreement. Bryant said he believes a valid settlement agreement exists.

The hospital board fired Reimche in a 3-0 vote on Nov. 30, 2006, after a public hearing in which a human resource specialist hired by the district to investigate concluded Reimche's relationships with other employees were significantly impaired.

Reimche's lawsuit against the district and Montion alleges she was a victim of retaliation, slander and sexual harassment, which the defendants denied. They maintain those allegations were thoroughly investigated by the human resource specialist and were unsubstantiated.

The settlement agreement that came out of mediation called for a clause in which no parties would admit wrongdoing or liability.

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