Amended Answer; Amended Answer to First Amended Complaint; Answer
Public Court Documents
July 5, 1977
18 pages
-
Case Files, Hatcher v. Methodist Hospital - Hardbacks. Amended Answer; Amended Answer to First Amended Complaint; Answer, 1977. 86d8ec01-5484-f111-ab0f-7c1e527d528a. LDF Archives, Thurgood Marshall Institute. https://ldfrecollection.org/archives/archives-search/archives-item/60479309-9f2b-4aea-a1ac-ced3770d50cf/amended-answer-amended-answer-to-first-amended-complaint-answer. Accessed October 10, 2026.
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[||c2f5afb8-2aba-4927-9205-45839509efe6||] IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF INDIANA
HAMMOND DIVISION
RICHARD GORDON HATCHER, et al.,
Plaintiffs,
Vv. CiV H 77-154
METHODIST HOSPITAL OF GARY,
INC. , et Aal1l.,
Defendants.
AMENDED ANSWER
Defendant Joseph Califano, Secretary of Health, Education
and Welfare (hereinafter sometimes referred to as the federal
defendant) by his undersigned attorneys hereby responds to
the Complaint as follows:
First Defense
The complaint fails to state a claim upon which relief
can be granted.
Second Defense
Defendant Califano asserts that the Court should not exer-
cise its jurisdiction at the present time under the Doctrine of
Primary Jurisdiction.
Third Defense
In answer to the numbered paragraphs of the Complaint,
the federal defendant admits, denies and alleges as follows:
l. This paragraph contains plaintiffs' characterization
of its action to which no answer is required, but insofar as
an answer may be deemed required, deny.
2. This paragraph contains conclusions of law and not
, averments of fact to which an answer is required, but insofar
as an answer may be deemed required, admit, and defendant
Califano specifically avers that this Court should not exercise
its jurisdiction under the Doctrine of Primary Jurisdiction.
RA »
3. The first four sentences of this paragraph contain
plaintiffs' characterization of this action to which no answer
is required, but insofar as an answer may be deemed required,
deny. The remainder of the paragraph contains conclusions of
law and not allegations of fact to which an answer is required,
but insofar as an answer may be deemed required, deny.
4. Admit the first and third sentences. The federal defen-
dant is without knowledge or information sufficient to form a
belief as to the truth or falsity of the allegations contained
in the second and fourth sentences. The federal defendant
denies the allegation contained in the fifth sentence, and is
without sufficient knowledge or information to form a belief as
to the truth or falsity of the fifth sentence as to the other
defendants. The sixth sentence is a conclusion of law and not
an allegation of fact to which an answer is required, but insofar
as an answer may be deemed required, the federal defendant is
without sufficient knowledge or information to form a belief as
to the truth or falsity of the sixth sentence.
5. The federal defendant admits the first sentence and
the second sentence to the extent that Plaintiff Page has
required and does require hospital treatment. The federal
defendant is without sufficient knowledge or information
to form a belief as to the truth or falsity of the remainder of
the second sentence and the entire third sentence. The fourth
sentence is a conclusion of law and not an allegation of fact
to which an answer is required, but insofar as an answer may
be deemed required, the federal defendant is without knowledge or
information sufficient to form a belief as to the truth or falsity
of the allegations contained in the fourth sentence.
6. Deny the last sentence. The federal defendant is with-
out knowledge or information sufficient to form a belief as to
the truth or falsity of the remaining allegations.
4 »
7. Deny first sentence except to admit that Methodist
Hospital of Gary, Inc. is not a not-for profit corporation orga-
nized under the laws of the State of Indiana which currently
operates a 165-bed facility in Merriville, and affirmatively
alleges that HEW figures from November 1976 show that the
hospital operates a 385-bed facility in the City of Gary. Deny
the second sentence except to admit that Methodist Hospital of
Gary, Inc. is a recipient of federal funds under the Hill-Burton
Act and the Medicare and Medicaid programs. Admit the third
and fourth setences. Deny the fifth sentence. Deny the sixth
sentence.
8. Admit,
9. Admit, except to affirmatively state that the Health
Facilities, Services and Review Development Division is called
the Health Facilities, Services and Resource Development Bureau
and the other division of the State Agency is the Health Resources
Development Division.
10. Admit, except to affirmatively state that the Health
Facilities, Services and Review Development Division, is called
the Health Facilities Services.
11. Admit.
12. Admit.
13. Admit the first sentence. The federal defendant is
without information or knowledge sufficient to form a belief
as to the truth or falsity of the allegation in the second
sentence,
14. Deny the first sentence except to admit that Broadway
Methodist Hospital is located in Merriville, Lake County,
Indiana, approximately fifteen miles south of Gary Methodist
Hospital. Admit the second sentence. The federal defendant
is without knowledge or information sufficient to form a belief
as to the truth or falsity of the remaining allegations.
© »
15. Admit the first sentence. The federal defendant is
without sufficient knowledge or information to form a belief as
to the truth or falsity of the allegations in the second sen-
tence.
16. The federal defendant admits that the Broadway facility
located in Merriville, Indiana, has a small minority population
and that the linear acceleration is located only at Broadway.
The federal defendant is without knowledge and information suffi-
cient to form a belief as to the truth or falsity as to the
remaining allegations in paragraph 16 (a) through (4d), inclusive.
17. Deny and affirmatively allege that Methodist Hospital
of Gary, Inc. received a grant of $1,152,527, a guarantee on a
loan of $14,336,193.12 and an interest subsidy of $6,032,555.54.
18. Deny. The federal defendant affirmatively BE that
it performed no civil rights review of Project 189 prior to
avarding the Hill-Burton grant of $1,152,527. There was no national
requirement by HEW that a pre-grant civil rights review be made
and no national guidelines were established for discretionary
reviews. The September 5, 1973, endorsement on the loan
guarantee and interest subsidy for Project 189 was given after
Methodist Hospital of Gary, Inc. agreed to sign the Civil Rights
Assurances of July 27, 1973.
19. Admit first sentence. Deny second sentence and
affirmatively allege that the 1976 application requested
$3,281,370 for a health services building at Gary, $3,599,800
for a health services building at Merriville, and $1,262,200
for a laundry at Merriville which will serve both facilities.
20. Admit.
21. Admit.
22. Admit the first sentence. Deny the second sentence
except to admit that a letter from Mr. Clarence Wood raised the
issue of inferior health care to the poor and minority persons
© *»
of Gary. Deny the last two sentences and respectfully refer
the Court to the letter from Alfred Sanchez dated October 21,
1976, with attachments labelled Hill-Burton Applications of
the Methodist Hospital, Inc. for a full statement of its
terms and qualifications.
23. Admit the first sentence. The federal defendant is
without sufficient knowledge or information to form a belief
as to the truth or falsity of the second sentence.
24. Deny and affirmatively allege that HEW is presently
conducting a civil rights compliance review and that under the
Doctrine of Primary Jurisdiction, HEW should be allowed to
complete that review prior to a judicial determination by this
Court.
25. The federal defendant is without sufficient knowledge
or information to form a belief as to the truth or falsity
as to the allegations contained in this paragraph.
26. The federal defendant denies this paragraph and affir-
matively alleges, with respect to subparts (a), (b), (cc), (4),
(e), and (i), that the federal defendant is presently conducting
a civil rights compliance review pursuant to its authority
under Title VI of the Civil Rights Act.
27. The federal defendant is without kneulsdne or informa-
tion sufficient to form a belief as to the truth or falsity
of the allegations contained in this paragraph.
28. The federal defendant is without knowledge or informa-
tion sufficient to form a belief as to the truth or falsity of
the allegations contained in this paragraph.
29. This paragraph contains plaintiffs' prayer for relief
to which no answer is required.
The federal defendant hereby specifically denies all of
the allegations of the complaint not hereinbefore otherwise
answered.
OF COUNSEL:
MARVIN G. GAVIN
Regional Attorney
EDWARD L. KOVEN
Assistant Regional Attorney
Department of Health,
Education and Welfare
300 South Wacker Drive
18th Floor
Chicago, Illinois
JEFFREY CHAMPAGNE
U.S. Department of Health,
Education and Welfare
®
Respectfully submitted,.
a Mth (Bn bo Seton samp
BARBARA ALLEN BABCOCK
Assistant Attorney General
FRED W. GRADY
Assistant United States Attorney
td [5 C& MHptleT
BARBARA B. O'MALLEY
Ortluesea 2 (toss
REBECCA IL. ROSS
Lon O Collar,
ANN F. COHEN
S Sunaa foe
CATHY $. SURACE b vo
Attorneys for Defendant
Attorneys, Department of Justice
Washington, D.C. 20530
Telephone: (202) 739-4267
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF INDIANA
HAMMOND DIVISION
BERNICE TERRY, et al.,
Plaintiffs,
Vv. CIV 'H 76-3173
METHODIST HOSPITAL OF GARY,
INC., et al.,
Defendants.
AMENDED ANSWER TO FIRST AMENDED COMPLAINT
Defendant Joseph Califano, Secretary of Health, Education
and Welfare (hereinafter sometimes referred to as the federal
defendant) by his undersigned attorneys hereby responds to the
Complaint as follows:
First Defense
The complaint fails to state a claim upon which relief
can be granted.
Second Defense
Defendant Califano asserts that the Court should not exer-
cise its jurisdiction at the present time under the Doctrine of
Primary Jurisdiction.
Third Defense
In answer to the numbered paragraphs of the Complaint,
the federal defendant admits, denies and alleges as follows:
l. This paragraph contains plaintiffs’ shavacterization
of its action to which no answer is required, but insofar as
an answer may be deemed required, deny.
2. This paragraph contains conclusions of law and not
averments of fact to which an answer is required, but insofar as
an answer may be deemed required, admit, and defendant Califano
specifically avers that this Court should not exercise its juris-
diction under the Doctrine of Primary Jurisdiction.
3. The federal defendant admits the first sentence and
the second sentence to the extent that plaintiff Terry has
required use of hospital facilities, including emergency room
treatment. The federal defendant is without information or
knowledge sufficient to form a belief as to the truth or fal-
sity of the remaining allegations in the second sentence. The
third sentence is a conclusion of law and not an allegation +
of fact to which an answer 1s required, but insofar as an
answer may be deemed required, the federal defendant is without
information or knowledge sufficient to form a belief as to the
truth or falsity of the allegations of the third sentence.
4., The first two sentences of this paragraph contain
plaintiffs' characterization of this action to which no answer
is required, but insofar as an answer may be deemed required,
deny. The remainder of the paragraph contains conclusions of
law and not allegations of fact to which an answer is required,
but insofar as an answer may be deemed required, deny.
5. Deny first sentence except to admit that Methodist
Hospital of Gary, Inc. is a not-for-profit corporation orga-
nized under the laws of the State of Indiana which currently
operates a 1l65-bed facility in Merriville and affirmatively
allege that HEW figures from November 1976 show that the hos-
pital operates a 385-bed facility in the city of Gary. Deny
the second sentence except to admit that Methodist Hospital
of Gary, Inc. is a recipient of federal funds under the Hill-
Burton Act and the Medicare and Medicaid programs. The third
and fourth sentences are admitted.
6. Admit
7. Admit
8. Admit first sentence. Deny second sentence except to
admit that Gary is the largest city in Lake County. Deny second
sentence and affirmatively allege that although Gary had a
population of 175,415 according to the 1970 census, it has a
population of 167,546 according to the 1975 census, and further
affirmatively state that in 1970 the population of the City
of Gary was 52.8% Black and 9.4% Hispanic.
9. The federal defendant is without knowledge or informa-
tion sufficient to form a belief as to the truth or falsity of
the allegation contained in the first sentence. Admit the
second sentence. Admit the third sentence. The federal defen-
dant lacks knowledge or information sufficient to form a belief
as to the truth or falsity of the allegations contained in the
fourth sentence. Admit the last sentence.
10. The federal defendant admits that the Broadway facility
is located in Merrillville, Indiana, which has a small minority
population, that the linear accelerator is located only at
Broadway, and that the Merrillville facility consists of 165
beds. The federal defendant is without knowledge or information
sufficient to form a belief as to the truth or falsity of the
remaining allegations in the first three sentences. The federal
defendant admits the fourth sentence.
11. The federal defendant admits the first sentence. The
federal defendant is without information or knowledge sufficient
to form a belief as to the truth or falsity of the allegations
contained in the second sentence.
12. The federal defendant is without information or know-
ledge sufficient to form a belief as to the truth or falsity of
the allegations contained in this paragraph.
13. Deny and affirmatively allege that Methodist Hospital
of Gary, Inc. received a grant of $1,152,527, a guarantee on a
loan of $14,336,193.12, and an interest subsidy of $6,032,555.54.
l4. Deny. The federal defendant affirmatively alleges that it
performed no civil rights review of Project 189 prior to award-
ing the Hill-Burton grant of $1,152,527. There was no national
requirement by HEW that a pre-grant civil rights review be made
and no national guidelines were established for discretionary
reviews. The September 5, 1973, endorsement on the loan
guarantee and interest subsidy for Project 189 was given after
Methodist Hospital of Gary, Inc. agreed to sign the Civil Rights
Assurances of July 27, 1973.
15. Admit first sentence. Deny second sentence and affir-
matively allege that the 1976 application requested $3,281,370
for a health services building at Gary, $3,599,800 for a health
services building at Merriville, and $1,262,200 for a laundry
at Merriville which will serve both facilities.
16. Admit the first sentence. Deny the second sentence
except to admit that a letter from Mr. Clarence Wood raised
the issue of inferior health care to the poor and minority
persons of Gary. Sony the last two sentences and respectfully
refer the Court to the letter from Alfred Sanchez dated
October 21, 1976, with attachment labeled Hill-Burton Applica-
tions of the Methodist Hospital, Inc. for a full statement of
its terms and qualifications.
17. Admit the first sentence. The federal defendant is
without knowledge or information sufficient 40 form a belief
as to the truth or falsity of the allegations contained in the
second sentence.
18. Deny. The federal defendant affirmatively avers that
HEW 1s presently conducting a civil rights compliance review.
and that under the Doctrine of Primary Jurisdiction HEW should
be allowed to complete that review prior to a judicial deter-
mination by this Court.
19. The federal defendant is without knowledge or informa-
tion sufficient to form a belief as to the truth or falsity
of the allegations contained in this paragraph.
20. The federal defendant denies this paragraph and
affirmatively alleges that the federal defendant is presently
conducting a civil rights compliance review pursuant to its
authority under Title VI of the Civil Rights Act.
21. This paragraph contains plaintiffs’ prayer for relief
to which no answer is required.
The federal defendant hereby specifically denies all of
the allegations of the Complaint not hereinbefore otherwise
answered.
OF COUNSEL:
MARVIN G. GAVIN
Regional Attorney
EDWARD L. KOVEN
Assistant Regional Attorney
Department of Health,
" Education and Welfare
300 South Wacker Drive
18th Floor
Chicago, Illinois
JEFFREY CHAMPAGNE
U.S. Department of Health,
Education and Welfare
Respectfully submitted,
SARBARA ALLEN BABCOCK
Assistant Attorney General
FRED W. GRADY
Assistant United States Attorney
gi
Bets RB. GC’ pele
BARBARA B. O'MALLEY
Oo WeL0 2113 }0sS
REBECCA L. ROSS
Lorn lle...
ANN F. COHEN
>.
CATHY SURACE
Attorneys for Defendant
Attorneys, Department of Justice
Washington, D.C. 20530
Telephone: (202) 739-4267
CERTIFICATE OF SERVICE
I hereby certify the copies of the foregoing Amended
Answer in CIV H 77-154 and the Amended Answer to the First
Amended Complaint in CIV H 76-373 were served upon the
following counsel of record:
by one-day express mail to:
Ms. Beth Lief
10 Columbus Circle
New York, New York 10019
Mr. Julian Allen
2009 Broadway
Gary, Indiana 46407
Mr. Bruce Sayers
Hodges, Davis, Greenberg,
Compton & Sayers
5525 Broadway
Gary, Indiana 46401
Mr. Michael Schaefer
Assistant Attorney General of
Indiana
219 State House
Indianapolis, Indiana 46204
Mr. Edward L. Koven
Assistant Regional Attorney
Department of H.E.W.
300 South Wacker Drive
18th Floor
Chicago, Illinois
by first class mail to:
Ms. Marilyn G. Rose
1757 NM Street, N.W.
Washington, D.C. 20036
Jeff Champagne
Department of H.E.W.
Office of Civil Rights
General Counsel
330 Independence Ave., S.W.
Washington, D.C. 20201
Jim Hinchman
Department of H.E.W.
Office of General Counsel
200 Independence Ave., S.W.
Washington, D.C. 20201
Lorn A_Ceon
ANN F. COHEN
IN "THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF INDIANA
HAMMOND DIVISION
RICHARD GORDON HATCHER, et al.,
Plaintiffs,
v. Civil'No. HB 77-154 |
METHODIST HOSPITAL OF GARY, INC.,
et al.,
Defendants.
/
ANSWER :
Defendant Joseph Califano, Secretary of Health, Education
and Welfare (hereinafter sometimes referred to as the federal
defendant) by his undersigned attorneys hereby responds to the
Complaint as follows:
First Defense
Plaintiffs have failed to exhaust their administrative
remedies.
Second Defense
The Court lacks jurisdiction over the subject matter of
the action.
Third Defense
The complaint fails to state a claim upon which relief
can be granted.
Fourth Defense
In answer to the numbered paragraphs of the Complaint,
the federal defendant admits, denies and alleges as follows:
1. This paragraphs contains plaintiffs' characterization
Of its action to which no answer is required, but insofar as
an answer may be deemed required, deny.
2. This paragraph contains conclusions of law and not
averments of fact to which an answer is required, but insofar
as an answer may be deemed required, deny.
h
3
3. The first four sentences of this paragraph contain
plaintiffs' characterization of this action to which no answer
is required, but insofar as an answer may be deemed required,
deny. The remainder of the paragraph contains conclusions of
law and not allegations of fact to which an answer is required,
but insofar as an answer may be deemed required, deny.
4. Admit the first and third sentences. The federal
defendant is without knowledge or information sufficient to
form a belief as to alte truth or falsity of the allegations
contained in the ‘second and fourth sentences. Deny the fifth
and sixth sentences.
5. The federal defendant is without knowledge or infor-
mation sufficient to form a belief as to the truth or falsity
of the allegations contained in the first, second and third
sentences. Deny the fourth sentence.
6. Bony the last sentence. The federal defendant is
without knowledge or information sufficient to form a belief
as to the truth or falsity of the remaining allegations.
7. Deny first sentence except to admit that Methodist
Hospital of Gary, Inc. is a not-for profit corporation orga-
nized under the laws of the State of Indiana which currently
operates a 1l65-bed facility in Merriville, and affirmatively
allege that HEW figures from November 1976 show that the hos-
pital operates a 385-bed facility in the city of Gary. Deny
the second sentence except to admit that Methodist Hospital
of Gary, Inc. is a recipient of federal funds under the Hill-
Burton Act and the Medicare and Medicaid programs. Admit the
third and fourth sentence. Deny the fifth sentence. Admit the
sixth sentence.
8. Admit.
9. Admit, except to affirmatively state that the Health
Facilities, Services and Review Development Division is called
the Health Facilities, Services and Resource Development Bureau
and the other division of the State Agency is the Health Resources
Development Division.
10. Admit, except to affirmatively state that the
Health Facilities, Services and Review Development Division
is called the Health Facilities Services.
11. The federal defendant is without knowledge or infor-
mation sufficient to form a belief as to the truth or falsity
of this allegation.
12. Admit.
13. Admit the first sentence. The federal defendant
is without information or knowledge sufficient to form a belief
as to the truth or falsity of the allegation in the second
sentence.
14. Deny the first sentence except to admit that Broadway
Methodist Hospital is located in Merrillville, Lake County,
Indiana, approximately fifteen miles south of Gary Methodist
Hospital. Admit the second sentence. The federal defendant
is without knowledge or information sufficient to form a belief
as to the truth or falsity of the remaining allegations.
15. Admit the first sentence. Deny the second sentence.
16. Deny except to admit that the Broadway facility
located in Merriville, Indiana has a small minority population
and that the linear acceleration is located only at Broadway.
The federal defendant is without knowledge and information
sufficient to form a belief as to the truth or falsity of the
allegations concerning the location of handicapped persons in
South Lake County.
17. Deny and affirmatively allege that Methodist Hospital
of Gary, Inc. received a grant of $1,152,527, a guarantee on a
loan of $14,336,193.12 and an interest subsidy of 56,032,555.54.
18. Deny.
i
a
12. Admit first sentence. Deny second sentence and
affirmatively allege that the 1976 application requested
$3,281,370 for a health services building at Gary, $3,599,800
for a health services building at Merriville, and $1,262,200
for a laundry at Merriville which will serve both facilities.
20. . Admit.
21. Admit.
22. Admit the first sentence. Deny the second sentence
except to admit that-a letter from Mr. Clarence Wood raised
the issue of inferior health care to the poor and minority
persons of Gary. Deny the last two sentences and respectfully
refer the Court to the letter from Alfred Sanchez dated
October 21, 1976 with attachments labelled Hill-Burton
Applications of the Methodist Hospital, Inc. for a full
statement of its terms and qualifications.
23. Admit the first sentence. Deny the second sentence.
24. Deny and affirmatively allege that none of the named
plaintiffs wrote objections to HEW.
25. Deny.
26. Deny.
27. Deny.
28. Deny.
29. This paragraph contains plaintiffs' prayer for re-
lief to which no answer is required.
The federal defendant hereby specifically denies all of
the allegations of the complaint not hereinbefore otherwise
answered.
Respectfully submitted,
A A
re a A 7) rn ol es
BARBARA ALLEN BABCOCK 7
Assistant Attorney General
RICHARD 1... KIESER -
rT gd 3 wha a = - i a a hr
United stares AttorneV
OF COUNSEL:
JEFFREY CHAMPAGNE,
U.S. Department of Health,
Education and Welfare
MARVIN G. GARVIN
Regional Attorney
EDWARD IL. KOVEN
Assistant Regional Attorney
Department of Health,
Education and Welfare
300 South Wacker Drive
18th Floor
Chicago, Illinois
FRED W. GRADY
Assistant United States Attorney
C28 £ Fail
~"DENNIS G. LIND
AL en: wa gr i
REBECCA L. ROSS
Attorneys for Defendant
Attorneys, Department of Justice
Washington, D.C. 20530
Telephone: 739-4267
CERTIFICATE OF SERVICE
I certify that a copy of Defendants Answer has
— A
been served this 4 L day of July. 1977 by mailing
postage prepaid to:
Ms. Beth Lief
Mr. Jack Greenberg
Mr. Melvyn Leventhal
10 Columbus. Circle
New York, New York 10019
Mr. Julian Allen
2009 Broadway
Gary, Indiana 46407
Ms. Marilyn G.. Rose
Ms. Christine B. Hickman
1787 X Street, N.W.
Washington, D.C, 20036
Mr. Bruce E. Sayers
Hodges, Davis, Greenberg, Compton
& Sayers
5525 Broadway
Gary, Indiana 46401
Kipton Kaplan
Executive Director, Northern Indiana
Comprehensive Health Services Agency,
Inc.
900 East Colfax Avenue
South Bend, Indiana 46617
Michael Schaefer
Assistant Attorney General
of Indiana
219 State House
Indianapolis, Indiana 46204
Ce i te
EBECCA™L.. ROSE [||c2f5afb8-2aba-4927-9205-45839509efe6||]