LAWRENCE COUNTY Ex-owner of Hill View seeks funds

The letter contends some of John Hadgkiss' personal money was in the account.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- One of the former buyers of Hill View Manor, the county nursing home, contends the county owes his company for services performed and is potentially liable for more than $4 million in damages.
Atty. Robert A. Krebs of Pittsburgh sent a letter to the county solicitor and Commissioner Roger DeCarbo dated Dec. 12 asking to settle some of the issues before initiating any lawsuits.
"I realize that this transaction has become a very politically charged one; however, the fees as outlined above represent for-value services that were received by the county, pursuant to a valid interim management contract, plus cash funds that were paid to the county as part of a refundable deposit," Krebs wrote.
Krebs represents John Hadgkiss, who was one of the Sylvan Heights Realty Partners LLC. Hadgkiss also is owner of Americare, a company hired by the county earlier this year to manage the nursing home.
Hadgkiss, Americare, Sylvan Heights Realty Partners and George Howley, another partner in Sylvan, were named in a lawsuit filed Friday by the county. The county is seeking more than $140,000 that it contends was taken from private-pay patient accounts and put into a Sylvan bank account.
Krebs said that money was used to buy computers and other things the county is still using in the facility.
Expects to file counterclaim
Krebs said he expects his client to file a counterclaim in common pleas court for damages outlined in his letter.
"It's a real shame the county decided to go ahead with its lawsuit. It's only going to be protracted and costly for the taxpayers," he added.
The sale of the nursing home to Sylvan Heights failed last summer after more than $500,000 from the private-pay patients and private insurance payments had been put into Sylvan's accounts before the sale was final. County commissioners then fired Americare.
Krebs' letter contends the county received six months of management services from Americare at $12,000 per month, for a total of $72,000. The letter also states that the company is owed two months of the administrator's salary, which totals $11,200.
Finally, the letter says the county is holding $11,000 of a deposit on the purchase of Hill View, which was paid by South Central Alpha Housing and Healthcare Inc. -- another company affiliated with Hadgkiss.
Krebs wrote that when County Controller Mary Ann Reiter withdrew money from Sylvan Heights' operating account, $53,000 of Hadgkiss' personal money was in the account.
Reiter took the money after a common pleas court judge gave her power of attorney over the account. County officials said the money was needed to cover payroll and other expenses at the home.
Other issues
The letter also points out these other outstanding issues:
* A potential breach of contract claim against the county for the failure to buy Hill View Manor.
* The failure of the county to disclose that the county had not met the terms of its union agreement to serve proper notice on the union of the sale.
* The county's refusal to provide loan guarantees that it had contracted for.
Krebs also contends there were additional damages that amount to $101,000 and potential other damages of $4.1 million.
DeCarbo said he is unsure how this letter will be handled by the county. County Solicitor John Hodge could not be reached Monday afternoon.
cioffi@vindy.com