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Published on 11/20/1995 All articles from this issue

Hospital board mum on litigation action against Camino Healthcare management

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By Clyde Noel / Town Crier Staff Writer

The four-member board of trustees of the El Camino Hospital District was keeping quiet last week on any further developments in a potential legal battle between the district board and Camino Healthcare management.

Attorneys from the Stephen Mayne of Steefel, Levitt & Weiss legal firm of San Francisco are representing the district board interests. The board also is employing the public relations firm of Orloff/Williams & Co.

The El Camino Hospital District Board elected to initiate legal action on Oct. 30 to seek a judicial judgment declaring void three 1992 contracts that transferred hospital assets and management responsibility to Camino Healthcare.

The action follows the District Board's discovery that the agreements between the El Camino Hospital District and Camino Healthcare violated California Government Code 1090. An interpretation of that code prohibits government employees from participating in the making of public contracts in which they have an interest.

Under the California Government Code, contracts created in violation of 1090 are void and unenforceable.

Camino Healthcare Board members consider the district's lawsuit is without merit and no conflict of interest exists. The Camino Healthcare board is also concerned the costs and adversarial nature of litigation could hurt day-to-day operations at the hospital.

At stake is control of the 462-bed hospital that serves the residents of Mountain View, Los Altos, Los Altos Hills and Sunnyvale.

Both district and Camino Healthcare board members hope hospital operations will proceed without adverse effect on the employees of El Camino Hospital in the event the two sides are unable to settle their differences soon.

The district board hopes to engage in a productive discussion with the representatives of the Camino Healthcare Board of Directors to resolve matters promptly in the best interest of the community.

The next El Camino Hospital District board will meet at 6:30 p.m. Dec. 7 in the back of the El Camino Hospital cafeteria and is open to the public. Camino Healthcare board members meet at unannounced times and are not open to the public.