PLACEMENT: Consent
TITLE:
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REQUEST TO APPROVE SETTLEMENT AGREEMENT
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EXECUTIVE SUMMARY:
executive summary
The County Attorney’s Office recommends that the Board of County Commissioners approve the Settlement Agreement between the Martin County Sheriff’s Office, the Martin County Board of County Commissioners, Office Enhanced Management Services, LLC, Daniel J. Stermer solely in his capacity as the Assignee for the Benefit of Creditors of Armor Health Management, LLC, Armor Correctional Health & Medical Services of New York, Inc., and Martin Memorial Medical Center, Inc.
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DEPARTMENT: County Attorney
PREPARED BY: Name: Melissa L. Pietrzyk
Title: Senior Assistant County Attorney
REQUESTED BY: Melissa L. Pietrzyk
PRESET:
PROCEDURES: None
BACKGROUND/RELATED STRATEGIC GOAL:
Armor Health Management, Inc., was a provider of inmate health services to the Martin County Sheriff’s Office. Armor filed an action in the 19th Judicial Circuit, Martin County, under case no 2023-CA-1212 against the Sheriff alleging there were outstanding claims to be paid to Armor. The parties have reached a settlement in the matter which involves Armor receiving $200,000 from the Sheriff’s Inmate Medical Services Fund for payment for these services. Martin County Board of County Commissioners (‘BOCC’), while not named as a party to the lawsuit, is involved to the extent it processes the Sheriffs budget for these inmate services.
During this action, Armor commenced a separate action known as an Assignment for the Benefit of Creditors, in the 11th Judicial Circuit, Miami-Dade, under case no. 2023-024558-CA-01. An Assignment for the Benefit of Creditor is a business liquidation device available to an insolvent debtor (Armor) as an alternative to formal bankruptcy proceedings. Martin Memorial Medical Center is a named creditor in that action, whereby it claims it is owed $6.5 (six and a half) million dollars from Armor.
Martin County Sheriff’s Office, Office Enhanced Management Services, LLC, Daniel J. Stermer solely in his capacity as the Assignee for the Benefit of Creditors of Armor Health Management, LLC, Armor Correctional Health & Medical Services of New York, Inc., and Martin Memorial Medical Center, Inc. are entering into a settlement which would resolve case no 2023-CA-1212 and would ensure that the settlement payment from the Sheriff’s Office is applied to the Martin Memorial credit under case no. 2023-024558-CA-01.
The BOCC is joining in this settlement agreement which would ensure that no claims can be made against the BOCC by Office Enhanced Management Services, LLC, Daniel J. Stermer solely in his capacity as the Assignee for the Benefit of Creditors of Armor Health Management, LLC, Armor Correctional Health & Medical Services of New York, Inc., Martin Memorial Medical Center, Inc., or the Sheriff, as related to the allegations asserted under 2023-CA-1212 and 2023-024558-CA-01.
ISSUES:
None
LEGAL SUFFICIENCY REVIEW:
This item has been reviewed for legal sufficiency to determine whether it is consistent with applicable law, has identified and addressed legal risks, and has developed strategies for legal defensibility
RECOMMENDED ACTION:
RECOMMENDATION
Move that the Board authorize the County Administrator to execute the Settlement Agreement.
ALTERNATIVE RECOMMENDATIONS
Pull this item from the Consent Agenda and provide staff further direction.
FISCAL IMPACT:
RECOMMENDATION
None
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Funding Source |
County Funds |
Non-County Funds |
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Inmate Medical Services Funding |
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200,000 |
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Subtotal |
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200,000 |
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Project Total |
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ALTERNATIVE RECOMMENDATIONS
None
DOCUMENT(S) REQUIRING ACTION:
☐Budget Transfer / Amendment ☐ Chair Letter ☐Contract / Agreement
☐Grant / Application ☐Notice ☐Ordinance ☐Resolution
☒Other: Settlement Agreement
This document may be reproduced upon request in an alternative format by contacting the County ADA Coordinator (772) 320-3131, the County Administration Office (772) 288-5400, Florida Relay 711, or by completing our accessibility feedback form at www.martin.fl.us/accessibility-feedback <http://www.martin.fl.us/accessibility-feedback>.