Settlement Agreement

     [||a28eddd7-b92c-4b2b-8da7-d004cf3b0633||] -» 
tg 

IN THE 

  

UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF INDIANA 

HAMMOND DIVISION 

BERNICE TERRY, ET AlL., 

Plaintiffs 

VS. Cause No. H 76-373 

METHODIST HOSPITAL OF GARY, INC., 

An Indiana Not For Profit 
Corporation, and JOSEPH CALIFANO, 
as United States Secretary of 
Health, Education and Welfare, 

Defendants 

RICHARD GORDON HATCHER, 

WILLIE LEE PAGE, 

METRO CORPS OF GARY, INC., 

A Not-For-Profit Corporation 
and others similarly situated, 

Plaintiffs 

Vs. Cause No. H 77-154 

METHODIST HOSPITAL OF GARY, INC., 

An Indiana Not-For-Profit 
Corporation and DENIS E. RIBORDY, 
as President of the Board of 

Directors, 

JOSEPH CALIFANO, as United States 
Secretary of Health, Education 
and Welfare, 

WILLIAM T. PAYNTER, M.D., as 

State Health Commissioner for the 

Indiana State Board of Health, 

JAMES WHITE, as Director of the 
Division of Hospital and 
Institutional Services of the 
Indiana State Board of Health, 

DAVID J. EDWARDS, M.D., as 

Director of the Health Facilities, 
Services and Review Development 
Bureau of the Indiana State Board 
of Health La we b _ F 

a
r
?
 

e
r
”
 

e
r
?
 

e
r
”
 

S
r
’
 

e
r
”
 

N
a
’
 

S
e
”
 

N
e
 

n
e
’
 

e
r
?
 

a
t
”
 

a
?
 

C
a
?
 

N
n
”
 

S
a
 

a
t
 

S
w
i
?
 

a
?
 

S
a
t
 

N
w
?
 

S
a
 

N
o
 

S
i
l
 

N
a
i
 

N
a
g
 

N
a
t
l
 

N
i
l
l
 
N
a
 

w
a
t
?
 

“
a
t
?
 
“
e
l
 

“
w
t
 

“
w
i
t
 

w
t
 

Defendants 

SETTLEMENT AGREEMENT 
  

1. The attorneys for all parties in these cases have 

agreed upon a settlement thereof with the exception of plaintiffs’ 

 



  

allegations with respect to the "national causes of action" 

limited only to defendant, Joseph Califano, United States 

Secretary of Health, Education and Welfare which were severed 

by this Court's Order of January 13, 1978, and plaintiffs’ 

allegations of "statewide causes of action" limited to the 

State of Indiana defendants. Further, Counsel for plaintiffs 

reserve the right to apply to this Court for an Order for 

the entry of attorney's fees and costs against the defendants 

and Counsel for the defendants deny the right of Counsel 

for the plaintiffs to apply to this Court for attorney's 

fees and costs and specifically reserve any and all rights 

they have to dispute or deny such claims of the Counsel 

for plaintiffs, except that defendants shall not Sain that 

counsel for plaintiffs have waived their alleged right to 

apply for attorney's fees and costs by entering into the" 

Consent Decree, 

2. The attorneys for the parties have reduced the 

terms of the agreed upon settlement to a proposed Consent 

Decree, a copy of which proposed Decree with exhibits is 

attached hereto as Exhibit A. Said Consent Decree embodies 

all terms and conditions of the settlement and supercedes 

any previous verbal and/or written proposals, positions 

Or agreements. 

3. The attorneys for the parties have also agreed 

upon the form of a Joint Motion for Approval of Settlement 

and Consent Decree and Hearing on Objections to be submitted 

to the Court, a copy of which motion is attached hereto 

as Exhibit B. 

4. The attorneys for the parties have also agreed 

upon the form of a Notice of Proposed Settlement, Consent 

Decree and Hearing to be given all members of the class 

certified by this Court in its Order of December 7, 1977, 

a copy of which is attached hereto as Exhibit C. Said Notice 

3 

 



  

is to be given by publication in the following fashion: 

(To be agreed upon, i.e. Gary Post-Tribune, dates of 
publication). 

5. The hospital intends to submit a proposed Order 

to the Court, a copy of which has been attached hereto as 

Exhibit D, for entry upon the execution of this Settlement 

Agreement and its attached Exhibits A and B. It is understood 

and agreed that in the event such Order is not entered or 

is modified or varied in any fashion in the future without 

the express agreement of the hospital, that the hospital 

will be released from its obligations as set forth in this 

Settlement Agreement and, further, that the documents submitted 

to the Court under seal’ as requested by the hospital shall 

be withdrawn and the Settlement Agreement shall be null 

and void, and all the parties will resume negotiations on 

settlement and this matter will be reset for trial. 

6. The attorneys for the parties further agree that 

this Settlement Agreement and the documents to effectuate 

the provisions thereof, Exhibits A, B and C, are contingent 

upon the hospital securing certain financing and to that 

end it is understood and agreed that the Consent Decree, 

Joint Motion and Notice, Exhibits A, B and C above, will 

be opened, implemented and acted upon by the Court only 

in the event that the hospital has secured financing at 

an interest rate of no more than one and one-half points 

over the prime rate listed at the Continental Illinois 

National Bank for a period of not less than twenty-five 

(25) years to carry out the building projects described 

in paragraphs B-1 and B-2 of the Consent Decree, Exhibit 

A. It is understood that the hospital will secure such 

financing or determine that such financing is not available 

as soon as practicable but not later than May 31, 1979. 

he 

 



  

- “ 
a“ 

  

In the event Methodist Hospital is unable to secure financing 

according to the terms outlined above, all the parties will 

resume negotiations on settlement and this matter will be 

reset for trial. 

Respectfully submitted, 

ATTORNEYS FOR PLAINTIFFS 

  
  

JACK GREENBERG 

N.A.A.C.P. Legal Defense Fund 
10 Columbus Circle, Suite 2030 
New York, New York 10019 

  

BETH J. LIEF 

N.A.A.C.P. Legal Defense Fund 
10 Columbus Circle, Suite 2030 
New York, New York 10019 

  

JULIAN B. ALLEN 
2009 Broadway 
Gary, Indiana 

ATTORNEYS FOR METHODIST HOSPITAL:OF GARY, INC. 
and DENIS E. RIBORDY, AS PRESIDENT OF THE 
BOARD OF DIRECTORS 

  

BRUCE E. SAYERS 

  

EDWARD J. HUSSEY 

HODGES, DAVIS, GRUENBERG, COMPTON & SAYERS 

5525 Broadway 
Gary, Indiana 46410 

  
RAYMOND J. KELLY 

  

MARC KRASS : 

SEYFARTH, SHAW, FAIRWEATHER & GERALDSON 

55 East Monroe Street 
Chicago, Illinois 60603 

PH CALIFANO, UNITED ATTORNEYS FOR JOSEP 
Y OF HEALTH, EDUCATION AND WELFARE STATES SECRETAR 

  
REBECCA L. ROSS 

Department of Justice 
10th and Pennsylvania Avenue, N.W. 
Washington, D.C. 

 



  

    
ALBERT HAMLIN 

Assistant General Counsel 
Civil Rights Division 
Office of General Counsel 
Department of Health, Education and Welfare 
330 Independence Avenue, S. W. 
Washington, D. C. 20201 

  

JEFFREY CHAMPAGNE 

Attorney, Office of General Counsel 
Civil Rights Division 
Department of Health, Education and Welfare 
330 Independence Avenue, S. W. 
Washington, D. C. 20201 

  

FRED W. GRADY 

Assistant United States Attorney 
United States District Court 
Northern District of Indiana 
Federal Building, 507 State Street 
Hammond, Indiana 46320 

ATTORNEYS FOR WILLIAM T. PAYNTER, M.D., 
AS STATE HEALTH COMMISSIONER FOR THE 
INDIANA STATE BOARD OF HEALTH, JAMES 
WHITE, AS DIRECTOR OF THE DIVISION OF 
HOSPITAL AND INSTITUTIONAL SERVICES 
OF THE INDIANA STATE BOARD OF HEALTH 
and DAVID J. EDWARDS, M.D., AS DIRECTOR 
OF THE HEALTH FACILITIES, SERVICES AND 
REVIEW DEVELOPMENT BUREAU OF THE INDIANA 
STATE BOARD OF HEALTH 

  

THEODORE SENDAK 

Attorney General 

  

ERIC B. SERVAAS 

Deputy Attorney General 
State House 

Indianapolis, Indiana 46204 [||a28eddd7-b92c-4b2b-8da7-d004cf3b0633||]