COLUMBIANA COUNTY Judge freezes funds in stock sale case
A hearing on the matter is set for early April.
By NORMAN LEIGH
VINDICATOR SALEM BUREAU
LISBON -- East Liverpool's safety forces have won the first round in a fight for a share in proceeds from a stock sale made by the city administration.
Judge David Tobin of Columbiana County Common Pleas Court determined Thursday that the $711,000 the city received from the sale of stock in a health insurance company be frozen until a hearing is held to determine its disposition.
The city's firefighter and police unions sought the injunction, arguing that part of the stock sale proceeds belong to their members.
Finding that the unions' argument has merit, Judge Tobin granted the injunction and set a hearing for April 3.
The city's health insurance provider, Anthem Insurance Co., "demutualized" and issued stock, which the city sold March 8 for $711,000.
Being disputed: The proceeds from the sale are being disputed.
City administration officials said they intended to place the money in the general fund and use it for city needs.
But the police and firefighter unions argue that their members helped pay premiums for the health insurance. On that basis, union members are entitled to share at least $232,000 of the $711,000, the unions say.
The claim equals the amount union members contributed to health insurance premiums. It's unclear over what period those premiums were paid.
"While the city claims that this money is entirely the city's, the plaintiffs have a legitimate argument that some, if not all, of this money may actually be the plaintiffs," Judge Tobin wrote in issuing his opinion.
Demutalization means that a company previously owned by its policy-holders, changes to one owned by holders of stock, regardless of whether they hold policies.
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