Payment order issued in suit against hospital
Staff writer
Although a Herington man is filing motions to intervene in foreclosure against Herington Hospital, a judge has ordered garnishment money to be paid to Emprise Bank.
The bank filed a $1.9 million suit Oct. 9 in Marion County District Court against the hospital and five other entities. The suit seeks mortgage foreclosure and possession of property and equipment inside the buildings of Herington Hospital, including a clinic at Hillsboro.
The suit was filed the same day the hospital stopped providing services and administrators stopped showing up at work.
District Judge Courtney Boehm issued an order of garnishment Nov. 27 not to exceed $2.13 million for money in First National Bank of Hope and Commerce Bank of Wichita. She issued a default judgment against the hospital Dec. 4 and a Dec. 27 order for the property to be sold.
Robert Danzman, recently appointed chairman of the board and managing director for the hospital, filed an emergency request for relief Dec. 28, asking that orders seeking liquidation of hospital assets be stayed and that no further orders granting the bank possession of assets be issued.
On Dec. 18, Boehm ordered that $36,497.31 garnished from First National Bank of Hope be paid to Emprise Bank.
On Jan. 4, Boehm ordered $12,629.57 garnished from Commerce Bank be paid to Emprise Bank.
Emprise also filed a motion Jan. 4 to strike Danzman’s request for relief. Lawyers for Emprise contend the hospital closed without warning, that it did not respond to the bank’s lawsuit in a timely manner, and that Boehm granted a default judgment Dec. 4.
The bank also contends Danzman has no authority because he is not a licensed attorney, which state law requires a corporation to maintain.