Facts

Plaintiff, Marin General Hospital, sued defendant, Sutter Health, alleging that Sutter appropriated $120 million in various funds and profits prior to returning control of a hospital back to Marin. Plaintiff presented a number of witnesses to support the proposition that Sutter allowed the hospital to run down.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that Sutter disproportionately appropriated funds in order to build competing medical facilities prior to Plaintiff's takeover of a hospital. Moreover, Marin was taken out of an "obligated group," allowing Sutter to take money from Marin, but precluding Marin from receiving the benefits of any pooling funds. Plaintiff further contended that Sutter created a biased board in order to make the money transfers. In addition, Plaintiff contends that Sutter failed to pay depreciation or upgrade the technology at the facility.

DEFENDANTS' CONTENTIONS:
Defendants contended the disputed money was excess working capital that it pools with funds from other facilities in order to collectively strengthen all of those facilities.

Damages

Plaintiffs lost $120 million or some reasonable percentage of it that was taken away from Marin General Hospital.

Result

Marin Healthcare District: $21,593,459 Sutter Health: $721,094

Other Information

Marin General Hospital Corporation is entitled to $2,998,332 due to Sutter's breach of the agreements as they related to physician recruitment, $5,365,740 for breach of the agreements as they related to improper charges for cost of capital, $11.3 million in restoration of excess contributions to the SHRP, $814,392 for amounts due to the IS claim and $1,114,995 from the escrow account relating to the IS training costs. Sutter is entitled to release of the balance of the IS escrow fund in the amount of $721,094. All claims against Heller, Berdick and Bradley denied.