Olympus America Inc. claims a valid, binding $ 372,861.08 + claim directly against the Hoboken Municipal Hospital Authority (City of Hoboken).

September 13, 2011 - Ed Mecka - Edmecka.com

As the wheels of justice slowly turn, new filings in the Hudson Healthcare, Inc. bankruptcy case continue to bring eye-opening insight into the troubled finances of the Hoboken University Medical Center under the oversight of the Hoboken Municipal Hospital Authority.

In court papers filed September 13, 2011 in Federal Bankruptcy Court, Olympus America, Inc. asserted a valid, binding claim directly against the Hoboken University Hospital Authority, a non-debtor, based upon its contract with the Hoboken Municipal Hospital Authority.  If the Court agrees, the City of Hoboken may be responsible for payments in excess of $ 372,861.08.

Olympus further claimed that it never had a contractual relationship with Hudson Healthcare, inc. and does not a have direct contractual claim against Debtor Hudson Healthcare, Inc.; however, Olympus may have an unjust enrichment claim against the Debtor for failing to return the Equipment that is not property of the Estate pursuant to a judgment and unjust enrichment based on the Authority for Debtor’s continued use of the Equipment. See “Olympus Objection to related document94 - Motion 09-13-2011.pdf”

TIMELINE:

March 22, 2007: The Hoboken Municipal Hospital Authority entered into a contract with Olympus America, Inc. for the purchase and service of Olympus medical equipment pursuant to an Olympus Cost/Per Procedure Agreement. See "Exhibit A".

August 10, 2010: Olympus sued Hoboken Municipal Hospital Authority, Hoboken University Medical Center, and Hudson Healthcare, inc. in the Court of Common Pleas of Lehigh County, Pennsylvania Civil Division, case No. 2010-C-4204, for $ 372,861.08.  See “Exhibit B”.

March 21, 2010: Olympus America advised Hoboken Municipal Hospital Authority-Hoboken University Medical Center 308 Willow Avenue, Hoboken, N.J, "YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILE, IN WRITING, WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. UNLESS YOU ACT WlTHlN TEN (1 0) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS." See “Exhibit C”.

April 26, 2011:  The Court entered a default judgment in favor of Olympus against defendants Hoboken Municipal Hospital Authority – Hoboken University Medical Center and Hudson Healthcare, Inc. for failure to answer or appear.  See “Exhibit C”.

First and foremost, why would the Hoboken Municipal Hospital Authority ignore the Court process and was the matter discussed at the Authority"s public meetings?