CUC barred—for now—from disconnecting CHC

The Commonwealth Utilities Corp. has been prohibited from disconnecting any utility services to the Commonwealth Healthcare Corp. or at the Commonwealth Health Center until their legal dispute is resolved.

In a preliminary injunction yesterday, Superior Court Associate Judge David A. Wiseman also ordered CHCC to continue to pay its current and monthly usage bills—not including late fees, interests, and penalties—for the remainder of the lawsuit or until ordered by the court.

Citing precedent, the judge said the court will issue a preliminary injunction when it is necessary to preserve the status quo between parties to an action pending a final determination on the merits.

Wiseman said that CHCC has made a prima facie showing of likely success on the merits—at least in part—of the underlying suit.

Wiseman said the possibility of irreparable harm—which is actual, imminent, and not speculative—weighs in favor of CHCC in deciding whether to grant injunction relief.

The judge said the hardship that CUC will suffer is minimized by the court’s own order requiring CHCC to at least pay its current usage bill until its motion for preliminary injunction is decided.

On the other hand, the judge noted, the hardship facing CHCC if the injunction were not granted far outweigh any remainder of monetary or financial interest CUC would incur should the court deny CHCC’s request for injunctive relief.

“Avoiding redundant analyses, the court stresses the detrimental and potentially devastating effect such a disconnection of any of CHCC’s operations would have on its ability to provide critical care services, retain CMS certification, and otherwise sustain the welfare of the people of the Commonwealth,” Wiseman said.

He said the effect on the public interest would be deleterious if the court declined to grant CHCC’s requested relief, and that this factor also weighs in favor of granting CHCC’s request.

The judge also ruled that the balance of the hardships tips sharply in CHCC’s favor, as providing critical, irreplaceable, and potentially life-saving healthcare services is infinitely more important than any financial interest of a public corporation.

CUC is suing CHCC to collect utility services in the amount of $9,690,875, together with pre-judgment interest. It was last reported that the hospital owes CUC $11 million in past due accounts.

It was reported that CHCC offered to pay $325,000 for its monthly utility consumption, but CUC rejected it as CHCC’s average consumption is about $540,000 a month.

CUC has threatened to disconnect unspecified utility services to CHCC.

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 TRO.

Wiseman heard the motion for preliminary injunction last May 29.

CUC, through counsel James Sirok, opposed CHCC’s motion for preliminary injunction. Sirok argued that CUC never threatened immediate disconnection of services to CHCC following the underlying lawsuit.

Sirok stated that any disconnection of services would only be to what it deemed to be “non-essential” portions of CHCC’s operations.

Sirok also claimed that harm would result to CUC if CHCC failed to pay its late charges and make current its utility account with CUC.

Wiseman then placed the motion for preliminary injunction under advisement. He gave the order yesterday that granted CHCC’s request.