Pullman Hospital suit settled; Gazette to file for disclosure

A suit between the Pullman Hospital District and Lydig Construction of Spokane was ordered dismissed Wednesday in Whitman County Superior Court. The dismissal was filed after attorneys for both sides stipulated they had agreed to a settlement of the suit Nov. 15. The settlement agreement included a provision to keep the terms of the agreement confidential.

Wednesday’s order of dismissal followed a week-long court dispute on a motion to seal terms of the settlement. The dispute involved an objection by the Whitman County Gazette that the settlement terms should be made public because the Pullman Hospital district is a public entity.

Filed March 24 by Attorney Kimberly Reppart, a member of the Seattle law firm which represents Lydig, the motion to seal was part of a move by Lydig to have the court issue an order of reasonableness on the settlement amount.

Lydig’s motion said it seeks the order of reasonableness to establish a presumptive damage figure for potential bad faith claims against various insurers. It cites a previous court ruling which found the amount of a settlement can be the amount of damages a company can seek in claims against its insurers.

The motion contends an order to seal terms of the agreement is needed to prevent public access to private information which could be potentially disruptive and harmful to the parties and their businesses.

Last Wednesday, Colfax attorney Gary Libey filed an objection to sealing the settlement agreement for the Whitman County Gazette.

The objection contends allowing the settlement documents to be presented to the court under seal will prejudice the rights of the public and taxpayers to know the details of the impacts the settlement may have on the future strength and stability of the hospital.

That contention is included in a declaration by Gazette Publisher Gordon Forgey which was filed by the objection.

A telephone hearing on the motion to seal was scheduled in court Friday, but the hearing was tabled after the Gazette objection was filed.

Pullman attorney David Savage, representing the hospital district, filed a declaration that states the Nov. 15 settlement agreement between Lydig and the hospital district included a confidentiality provision but also included a provision under which the hospital could be compelled to respond to a public disclosure request.

The settlement calls for the hospital to notify Lydig if it decides to respond to any such request. After receiving such a notice, Lydig would have the option of filing a motion to stop release of the settlement information.

Libey Tuesday said he plans to file a public disclosure request on behalf of the Gazette with the hospital district.