City in Iowa Plans to File Legal Malpractice Suit

March 29, 2012
In 2010, the city council voted to settle a $4.5 million federal lawsuit brought by a former firefighter who alleged the fire department had incorrectly billed Medicare and Medicaid to receive higher reimbursement rates for ambulance calls.

With no discussion, the Clinton City Council approved a resolution Tuesday to hire a Chicago law firm to pursue a legal malpractice claim.

Details of the claim were not made public.

The resolution presented to the council stated that "the City Council of Clinton, Iowa, finds that it is necessary to retain the services of the law firm of Hannafan and Hannafan to prepare and prosecute on behalf of the City of Clinton, Iowa, a lawsuit alleging legal malpractice."

The resolution continues that it also would be necessary to hire the law firm of Gosma, Tarbox & Associates of Davenport to act as local counsel. Hannafan and Hannafan is from Chicago.

In 2010, the city council voted to settle a $4.5 million federal lawsuit brought by a former firefighter who alleged the fire department had incorrectly billed Medicare and Medicaid to receive higher reimbursement rates for ambulance calls.

In connection with the lawsuit, the council voted to fire Fire Chief Mark Regenwether and EMS director Andrew McGovern. They were given their jobs back after the city's civil service commission ruled their firings were improper.

A group of residents has filed a lawsuit against the city, seeking records of closed meetings related to the settlement.

According to information provided by city finance director Jessica Kinser, the city has made several payments Hannafan and Hannafan, including $7,500 in March 2011, $4,500 in September 2011 and $25,000 on March 5 of this year.

In other action, City Administrator Jeffrey Horne recommended Mike Brown, now fire department fire marshal, become the new fire chief. He would replace Regenwether, who recently retired. The council will consider formal support of the recommendation at the next business meeting.

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