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CUC wants CHCC held in contempt
CHCC allegedly ignored $1.3M billings for 3 months
The Commonwealth Utilities Corp. yesterday asked for a court order holding the Commonwealth Healthcare Corp. in contempt for ignoring a $1.3-million bill for utility services for three months, causing CHCC’s total overdue balance to balloon to $14.7 million.
CUC, through counsel James S. Sirok, asked the Superior Court to issue a show-cause order requiring CHCC to appear in court and explain why it should not be held in contempt for failing to comply with the court’s orders of May 29, 2014, and Jan. 20, 2015.
At the May 29 hearing, Superior Court Associate Judge David A. Wiseman ordered CHCC to remain current with its monthly billings beginning June 1, 2014, or risk contempt, including consideration by the court of allowing the disconnection of non-essential CHCC utility services.
Last Jan. 20, Wiseman reiterated the order in issuing a preliminary injunction prohibiting CUC from disconnecting any utility services provided to CHCC or at the Commonwealth Health Center until the resolution of their dispute.
Sirok said that, as of Feb. 1, 2015, CHCC owes CUC $1.28 million for utility services for the months of October, November, and December 2014.
Sirok said as of Feb. 1, 2015, CHCC owes CUC a total of $14.69 million in unpaid utility services and late fees.
“These unpaid billings affect the ability of [CUC] to operate and provide utility services to the public,” the lawyer said.
Sirok said the court should find CHCC to be in contempt for the failure to comply with the court orders.
“As a consequence of this contempt, the utility should now be allowed to disconnect utility services to the Commonwealth Health Center,” Sirok said.
CUC sued CHCC in December 2013 to collect utility services in the amount of $9,690,875, together with pre-judgment interest. It was reported last year that the hospital owes CUC $11 million in past due accounts.
Last May 12, CHCC, through the Office of the Attorney General, filed a motion for temporary restraining order and preliminary injunction. CHCC asked the court to restrain CUC from disconnecting utility services for failure to pay what they claim were and are exorbitant and illegal late charges.
Last May 21, Wiseman granted CHCC’s request for a TRO.
Wiseman heard the motion for preliminary injunction last May 29.
