SOURCE: Cory Watson Crowder & Degaris

Cory Watson Crowder & DeGaris

August 07, 2009 17:59 ET

City of Irondale Sues Trinity Medical Center and Daniel Corporation: Suit Asks Court to Force Trinity to Honor Contract to Build Hospital in Irondale

BIRMINGHAM, AL--(Marketwire - August 7, 2009) - The City of Irondale today filed a lawsuit in the Circuit Court of Jefferson County asking the court to force Affinity Hospital, LLC, d/b/a Trinity Medical Center of Birmingham, to honor its contract to build a new hospital in Irondale. The lawsuit also seeks damages from Daniel Corporation for interfering with the contract between Irondale and Trinity to build the hospital. Defendants named in the suit include Affinity Hospital, LLC d/b/a Trinity Medical Center of Birmingham, Affinity Health Systems, LLC, Community Health Systems, Inc., developer Daniel Corporation, and its affiliated limited liability companies.

Trinity had contracted with Irondale to build a new hospital in Irondale, but Trinity abandoned that plan in late 2008, announcing it would take over the unfinished HealthSouth hospital project on Highway 280 instead. "We were blindsided on September 30th when Trinity CEO Bill Heburn came to my office and told me what they were doing. He assured me Trinity would do the right thing by the City of Irondale, but it has been nine months and that hasn't happened," said Irondale Mayor Tommy Alexander.

"The City of Irondale held up our side of the agreement; we purchased 154 acres of land, issued $32 million in bonds, and worked diligently to prepare for the hospital construction. Unfortunately, Trinity did not honor their commitment. Trinity has left us no option except to file suit," said Mayor Alexander.

The suit asks the court to order Trinity to honor its obligation under the contract and pursue the Certificate of Need required to build the hospital. Additionally the suit requests a jury to award damages to Irondale for their losses as a result of conduct of the defendants. Attorney Ernest Cory, who represents the City of Irondale said, "We have sworn testimony of numerous Trinity officials who said they were going to build the hospital in Irondale. We expect the evidence to reveal that at the same time they were meeting secretly with Daniel Corporation, making plans to move the hospital to Highway 280. If that evidence is true, their conduct is reprehensible."

The City of Irondale is represented by attorneys Ernest Cory, Jason Shamblin and Ryan Lutz of Birmingham, Alabama law firm Cory Watson Crowder & DeGaris and City of Irondale attorney Greg Morris. A copy of the 45-page complaint filing is available at www.cwcd.com.

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