OAG says $635,187 that two Rota doctors are seeking is unlawful

The $635,187 that two Rota physicians are seeking from the Rota Health Center and the Commonwealth Healthcare Corp. for alleged services are unlawful, according to the Office of the Attorney General.

OAG Civil Division chief Christopher M. Timmons, counsel for RHC and CHCC, said that, at the time Dr. Francois Claassens and Dr. James Toskas entered their contracts with the government, the amount of leave available to them was governed by the Civil Service Commission’s excepted service regulations.

Timmons made the argument in RHC’s and CHCC’s motion to dismiss the lawsuit filed by Claassens and Toskas that seeks payment for services in the total amount of $635,187.

The two doctors are suing RHC and CHCC in Superior Court for breach of contract and quantum meruit.

Quantum meruit determines the amount to be paid for services when no contract exists or when there is doubt as to the amount due for the work performed but done under circumstances when payment could be expected.

Claassens is demanding payment of $308,000 for all administrative leave, while Toskas is seeking payment of $327,187 for all administrative leave.

In RHC’s and CHCC’s motion to dismiss, Timmons said the regulations do not allow for administrative leave to be granted by department directors as part of an employee’s contract.

He said the contract states that “administrative leave with pay is granted by the governor only in exceptional circumstances such as typhoons and state funerals.”

Timmons said the contract further states that “administrative leave with pay may be granted by the employee’s department director to an employee serving on government boards and commissions, provided the employee does not receive compensation from the boards and commissions.”

Timmons said the leave to which the two doctors believe they are entitled is not permissible as annual leave because it was not approved by the director of the Office of Personnel Management.

Similarly, he said, it is not permissible because it exceeds the regulatory maximum—the amount of leave is not between four and eight hours.

Finally, Timmons said, this extra leave claimed is not permissible as administrative leave because it was not granted by the governor in exceptional circumstances, nor was it granted for service on a government board or commission.

“Because the benefits claimed by plaintiffs are illegal, plaintiffs cannot succeed under any legal theory,” the government counsel said.

On the quantum meruit claim, Timmons said it is not available when a valid contract exists.

Timmons said that Claassens and Toskas had valid employment contracts with the Commonwealth and/or the CHCC.

He said Claassens and Toskas acknowledge that the RHC resident director did not have the authority to execute an employment contract or authorize administrative leave.

Timmons said because Commonwealth law did not allow the resident directors or the Rota mayor to bind the Commonwealth to the purported agreements, the doctors’ claims must fail.

On the claim against RHC, Timmons said RHC is not a person, an entity, or even a department or agency of government and cannot be a party to the lawsuit.