Kalkaska health care lawsuits set for trial

Record-Eagle, The (Traverse City, MI)

Nov. 17--TRAVERSE CITY -- Kalkaska village officials fear an extensive legal battle scheduled for trial could soon conclude with "devastating" consequences.

Cases involving former and current village employees who sued the village after their health insurance benefits were cut -- including former department of public works employee Richard Ramsey and his wife Lila; former village Manager Melvin Hill and his wife, former village Manager Penny Hill; and village dispatcher Helen Chew-Artress and her husband William Artress -- will head to trial beginning Monday, Nov. 27.

John DiGiacomo, the attorney representing those individuals, continued preparing for the 46th Circuit Court case Wednesday. His clients all had their retiree village health care benefits cut in 2014, but DiGiacomo will argue those benefits were owed to his clients for life, according to a 1996 letter of understanding. He will fight for what could amount to millions in damages, according to court documents.

"We want to convince the jury that the individuals who lost their health insurance need to be compensated," he said. "The difficult problem is health insurance is expensive and the jury might believe the amount we're asking for isn't reasonable."

He plans to bring experts to speak about health insurance rates and inflation to clarify the requested damages.

Village attorney Jeff Jocks submitted court documents indicating the plaintiffs' expert -- Calvin Hoerneman -- calculated total damages surmounting $2.18 million, according to court files. The village has a $3.01 million budget, according to budget documents approved in February.

Village officials made multiple settlement offers, including an $80,000 offer to Richard Ramsey that was rejected last July, but the trial will proceed after both sides failed to reach an agreement. Officials continually stressed the potential damages that could result during that time.

"As I've been saying and urging people to maintain focus on the issue, it's going to be a devastating event for the community," said village Manager Scott Yost.

Village President Jeff Sieting previously said village leaders were looking into all options to pay the potentially crippling debt, including grants, bonds and tax increases.

DiGiacomo claimed officials are painting a dire picture and sharing it with village residents in attempts to taint the jury pool that could determine the damages the village and taxpayers would be on the hook for. It's an accusation village officials challenged.

"They know how to pay for this thing," DiGiacomo said. "It's our position that scaring the taxpayers into believing they will bear the brunt of this judgment is immoral."

Village officials could seek bonds to pay out those damages without increasing the burden too severely on taxpayers, he said. Yost directed questions concerning payment options to Jocks, who did not immediately return calls requesting comment.

DiGiacomo said it remains unclear how much village officials would be responsible for in terms of damages if he and his clients are successful. Determining those numbers is complex because the amount will be taxable and his clients could lose much of it.

He already attempted unsuccessfully to move the trial to a different venue. The damages could make it hard to sit an impartial jury since their tax dollars likely will be responsible for covering the massive debt, he said.

"That's a real risk for us," DiGiacomo said.

Yost stood by the village council members' and attorneys' work to fight the lawsuits and try to reach smaller settlements.

"This council has been trying to act in the best interest of the residents and businesses and taxpayers of the community," Yost said. "I'm sure they will continue to do so."

The trial is scheduled for Nov. 27-Dec. 1 in circuit court before Judge George Mertz.

Clearing the Record: Because of a reporter's error, this story incorrectly listed Helen Chew-Artress' employment status. She is currently a Kalkaska village dispatcher. This story has been edited to reflect the correction.

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