THE HONORABLE SUSAN K. SERKO IN THE SUPERIOR COURT OF THE STATE OF WASHINGTON IN AND FOR THE COUNTY OF PIERCE 1 1 1 1 VELMA WALKER, individually and as a class representative; JAMES STUTZ, individually and as a class representative; KARL WALTHALL, individually and as a class representative; GINA CICHON, individually and as a class representative, and; MELANIE SMALLWOOD, individually and as class representative, vs. Plaintiffs, HUNTER DONALDSON, LLC, a California limited liability company; MULTICARE HEALTH SYSTEM, a Washington nonprofit corporation; MT. RAINIER EMERGENCY PHYSICIANS, a Washington for-profit corporation; REBECCA A. ROHLKE, individually, on behalf of the marital community and as agent of Hunter Donaldson; JOHN DOE ROHLKE, on behalf of the marital community; RALPH WADSWORTH, individually, on behalf of the marital community, and as agent of Hunter Donaldson, and; JANE DOE WADSWORTH, on behalf of the marital community. Defendants. CLASS ACTION NO. 1--0-0 PLAINTIFFS MOTION FOR A TEMPORARY RESTRAINING, A PRELIMINARY INJUNCTION AND A SHOW CAUSE ORDER AGAINST HUNTER DONALDSON, MULTICARE, AND MT. RAINIER RESTRAINING ORDER 1 of 1 Pacific Avenue, Suite 0 Phone: () -0 Facsimile: () -0
1 1 1 1 I. RELIEF REQUESTED Plaintiffs Velma Walker, James Stutz, Karl Walthall, Gina Cichon and Melanie Smallwood ask this Court for a temporary restraining order under CR (b) followed by a preliminary injunction once notice is served on all parties pursuant to CR (a), enjoining Defendant Hunter Donaldson from collecting or enforcing liens on behalf of Defendants MultiCare Health System ( MultiCare ) and Mt. Rainier Emergency Physicians ( Mt. Rainier ) which violate Washington law. Plaintiffs also move this Court for an order requiring Defendants to show cause why an injunction on behalf of all others similarly situated should not be entered enjoining Hunter Donaldson s collection and lien enforcement practice on behalf of Defendants MultiCare and Mt. Rainier which violate Washington law. Defendants MultiCare and Mt. Rainier authorized Defendant Hunter Donaldson, a California firm that markets itself as specializing in the collection third-party liability claims, to act as its agent and signatory for the purpose of filing medical liens in Pierce County, Washington. Defendants Hunter Donaldson, Ralph Wadsworth, Rebecca A. Rohlke, and MultiCare agreed and acted in concert to fraudulently register Rebecca A. Rohlke as a Washington State notary allegedly living in Pierce County when she was, according to real estate records, actually a resident of California and not properly qualified under RCW..0 to be a Washington State notary. Defendants Hunter Donaldson, Rebecca A. Rohlke, and Ralph Wadsworth falsified and then recorded with the Pierce County Auditor thousands of medical liens on behalf of Defendants MultiCare and Mt. Rainier by improperly signing and knowingly using a notary not properly authorized under Washington law. By RESTRAINING ORDER of 1 Pacific Avenue, Suite 0 Phone: () -0 Facsimile: () -0
1 1 1 1 knowingly offering these false documents to the Pierce County Auditor s Office for filing in the public record, Defendants Hunter Donaldson, Rebecca A. Rohlke, and Ralph Wadsworth are committing class C felony criminal violations under RCW 0..00, punishable by fines and/or incarceration. In addition, Defendants deceptive and unlawful medical lien practice has caused great financial harm to Plaintiffs and to all similarly situated individuals by obstructing, delaying settlement of claims and by and extorting payments from Plaintiffs through the use of invalid liens against third-party damage recoveries. If left unchecked, Defendants actions will continue to mislead, deceive and harm the plaintiffs as well as a substantial portion of the public. II. STATEMENT OF FACTS Plaintiffs Velma Walker, James Stutz, Karl Walthall, Gina Cichon and Melanie Smallwood each received healthcare services from MultiCare for traumatic injuries caused by third party tortfeasors. Amended Complaint at -. Plaintiffs Stutz, Walthall, Cichon and Smallwood also received healthcare services from Mt. Rainier for traumatic injuries caused by third party tortfeasors. Id. In each case, Defendants MultiCare and Mt. Rainier authorized Defendant Hunter Donaldson to act as their agent for the purpose of filing a notice of medical lien pursuant to RCW 0..0. Id. at. Additionally in each case, Hunter Donaldson did, in fact, file liens for medical services under RCW 0..0. Exhibits 1 and to the Declaration of Darrell L. Cochran in Support of Plaintiffs Motion (hereinafter Cochran Decl. ). a. Plaintiff Velma Walker RESTRAINING ORDER of 1 Pacific Avenue, Suite 0 Phone: () -0 Facsimile: () -0
1 1 1 1 On or around January 1,, Plaintiff Velma Walker was in a slip and fall accident. Plaintiff Walker suffered traumatic injuries as a result of a third party tortfeasor s negligence. MultiCare treated Plaintiff Velma Walker s traumatic injuries in Pierce County, Washington. On or around April and again in April 1, Hunter Donaldson recorded two medical service liens under RCW 0..0 with the Pierce County Auditor s office on behalf of MultiCare against Plaintiff Velma Walker s claim or right of action against the tortfeasor responsible for her traumatic injuries. Id. b. Plaintiff James Stutz On or around July, Plaintiff James Stutz was injured in a motor vehicle collision. Plaintiff Stutz suffered traumatic injuries as a result of a third party tortfeasor s negligence. MultiCare and Mt. Rainier each treated Plaintiff James Stutz s traumatic injuries in Pierce County, Washington. On or around August, in August, in May 1 and again in July 1, Hunter Donaldson recorded medical service liens under RCW 0..0 with the Pierce County Auditor s office on behalf of MultiCare against Plaintiff James Stutz s claim or right of action against the tortfeasor responsible for his traumatic injuries. Exhibit 1 to Cochran Decl. On or around August 1, Hunter Donaldson recorded medical service liens under RCW 0..0 with the Pierce County Auditor s office on behalf of Mt. Rainier against Plaintiff James Stutz s claim or right of action against the tortfeasor responsible for his traumatic injuries. Exhibit to Cochran Decl. c. Plaintiff Karl Walthall On or around August 1,, Plaintiff Karl Walthall was in a serious motor vehicle collision. Plaintiff Walthall suffered traumatic injuries as a result of a third party tortfeasor s RESTRAINING ORDER of 1 Pacific Avenue, Suite 0 Phone: () -0 Facsimile: () -0
negligence. MultiCare and Mt. Rainier each treated Plaintiff Karl Walthall s traumatic 1 1 1 1 injuries in Pierce County, Washington. On or around May and again in April 1, Hunter Donaldson recorded medical service liens under RCW 0..0 with the Pierce County Auditor s office on behalf of MultiCare and Mt. Rainier against Plaintiff Karl Walthall s claim or right of action against the tortfeasor responsible for his traumatic injuries. Exhibits 1 & to Cochran Decl. d. Plaintiff Gina Cichon On or around February 1, Plaintiff Gina Cichon was injured in a motor vehicle collision. Plaintiff Cichon suffered traumatic injuries as a result of a third party tortfeasor s negligence. MultiCare and Mt. Rainier each treated Plaintiff Gina Cichon s traumatic injuries in Pierce County, Washington. On or around March 1, and again in March 1, Hunter Donaldson recorded medical service liens under RCW 0..0 with the Pierce County Auditor s office on behalf of MultiCare and Mt. Rainier against Plaintiff Gina Cichon s claim or right of action against the tortfeasor responsible for her traumatic injuries. Exhibits 1 & to Cochran Decl. e. Plaintiff Melanie Smallwood On or around November,, Plaintiff Melanie Smallwood was in a serious motor vehicle collision. Plaintiff Smallwood suffered traumatic injuries as a result of a third party tortfeasor s negligence. MultiCare and Mt. Rainier each treated Plaintiff Smallwood s traumatic injuries in Pierce County, Washington. On or about November,, and again on November, 1, Hunter Donaldson recorded medical service liens under RCW 0..0 with the Pierce County Auditor s office on behalf of MultiCare against Plaintiff RESTRAINING ORDER of 1 Pacific Avenue, Suite 0 Phone: () -0 Facsimile: () -0
1 1 1 1 Melanie Smallwood s claim or right of action against the tortfeasor responsible for her traumatic injuries. Exhibit 1 to Cochran Decl. On or about December, and again on November, 1, Hunter Donaldson recorded medical service liens under RCW 0..0 with the Pierce County Auditor s office on behalf of Mt. Rainier against Plaintiff Melanie Smallwood s claim or right of action against the tortfeasor responsible for her traumatic injuries. Exhibit to Cochran Decl. f. Hunter Donaldson s Invalid Medical Services Liens The instruments filed by Hunter Donaldson against the property interests of Plaintiffs were signed by Hunter Donaldson s managing partner Ralph Wadsworth as claimant s agent, and notarized by Hunter Donaldson employee Rebecca A. Rohlke, as a Notary Public in and for the State of Washington, with a sworn statement ( ss. ) allegedly made in Pierce County, Washington. See Exhibits 1 & to Cochran Decl. However, Hunter Donaldson s notary, Rohlke, is not and never was, during material times, a resident of Washington, Oregon, or Idaho as required under RCW..0. Rather, Rebecca A. Rohlke is and was, at all material times, a resident of California purposefully using a fraudulently obtained Washington State notary commission to record medical liens for Hunter Donaldson on behalf of MultiCare and Mt. Rainier. Exhibit to Cochran Decl. Additionally, notary Rohlke was, at all times material, believed to be physically present in California when she included the sworn statement ( ss. ) in the Notice of Claim for a medical services lien that notarization occurred in Pierce County, Washington. Exhibits 1 & to Cochran Decl. Furthermore, Hunter Donaldson is not a public or private operator of hospital and/or ambulance services; nor is it a licensed nurse, practitioner, physician, or surgeon who renders RESTRAINING ORDER of 1 Pacific Avenue, Suite 0 Phone: () -0 Facsimile: () -0
1 1 1 1 service or transportation and care for a patient with a traumatic injury as a result of a tort. See Exhibit to Cochran Decl. Therefore is not a recognized claimant under Washington s medical lien statute, RCW0..0. As a result, Hunter Donaldson s managing partner Ralph Wadsworth s signature is insufficient to act as the signature of MultiCare and Mt. Rainier. Exhibits 1 & to Cochran Decl. Moreover, the notary attestation regarding the signature of Ralph Wadsworth is insufficient to establish that he was authorized to sign the liens on behalf of Hunter Donaldson. Id. g. MultiCare s Actions in Concert with Hunter Donaldson In January, Defendant MultiCare s Vice President in charge of Revenue Cycle at the time, Jason Adams, acted in concert with others at MultiCare and with Defendants Rohlke and Hunter Donaldson, to provide false residency information for and falsely endorse Rohlke as a Washington State resident when she was in fact a California resident, at all material times living in La Habra, California and Fullerton, California. Exhibit to Cochran Decl. Rohlke, a Hunter Donaldson employee as well as its notary, is not authorized under RCW..0 to administer oaths in this state because she is not a resident of Washington, Oregon, or Idaho rather, she is, and always has been at all material times, a resident of California. Exhibit to Cochran Decl. Rohlke, Wadsworth, Hunter Donaldson and MultiCare then used Rohlke s falsely obtained notary on medical services liens for Defendants MultiCare and Mt. Rainier. Exhibits 1 & to Cochran Decl. Because Rohlke s notary was invalid, the liens are also unenforceable because they were not properly subscribed by the claimant or verified before a person authorized to administer oaths as required by RCW 0..0. h. Hunter Donaldson Continues to Collect on Invalid Medical Services Liens RESTRAINING ORDER of 1 Pacific Avenue, Suite 0 Phone: () -0 Facsimile: () -0
1 1 1 1 Soon after Plaintiffs filed a Complaint for Damages based on the Defendants unlawful medical liens practice, Defendant Multicare issued a statement by way of the local newspaper, the News Tribune, indicating, Exhibit to Cochran Decl. MultiCare Health System takes these allegations very seriously. We have commenced an investigation into the specific allegations that are listed in this complaint. Until we know all of the facts and have fully investigated the concerns raised, MultiCare has temporarily suspended the enforcement of all medical liens issued on its behalf by Hunter Donaldson. We will meet with representatives from Hunter Donaldson as soon as possible. Despite MultiCare s statement to the press, Defendant Hunter Donaldson continues to telephone local attorneys representing injured Washington State victims insisting upon payment pursuant to Hunter Donaldson s fraudulent liens. Declaration of Tom Budinich; Declaration of Virginia DeCosta; Declaration of Charles BroCato. At last count, according to a check done via the Pierce County Auditor s website, MultiCare has filed liens with the Pierce County Auditor s Office since Rebecca Rohlke signed her declaration on January,, to become a Washington State Notary. Exhibit to Cochran Decl. Mt. Rainier has filed 1 liens since Rohlke s January, notary application, and Hunter Donaldson has filed liens of its own. Exhibits & to Cochran Decl. III. ISSUES PRESENTED 1. Should Defendant Hunter Donaldson be Enjoined from Collecting or Enforcing Liens on Behalf of Defendants MultiCare and Mt. Rainier Because the Liens Violate Washington Law? RESTRAINING ORDER of 1 Pacific Avenue, Suite 0 Phone: () -0 Facsimile: () -0
1 1 1 1. Should Defendants Be Required to Show Cause Why an Injunction on Behalf of All Others Similarly Situated to Plaintiffs with Medical Liens Filed by Defendant Hunter Donaldson Should Not also Be Entered? IV. EVIDENCE RELIED ON The Declaration of Darrell L. Cochran and accompanying exhibits; the Declaration of Tom Budinich; the Declaration of Virginia DeCosta; the Declaration of Charles Brocato; and the Complaint and Amended Complaint on file. V. AUTHORITY A. Legal Standard for Granting Preliminary Injunctive Relief. When determining if a preliminary injunctive relief is appropriate, the court analyzes whether the moving party (1) has a clear legal or equitable right, () that the moving party has a well-grounded fear of immediate invasion of that right by the one against whom the injunction is sought, and () that the acts complained of are either resulting in or will result in actual and substantial injury to the moving party. Rabon v. City of Seattle, 1 Wn.d,, P.d (); see Kucera v. Department of Transp., Wn.d 0, (00). When deciding if a party has a clear legal or equitable right, the court examines the likelihood that the moving party will prevail on the merits. Rabon, 1 Wn.d at (citing Washington Fed n of State Employees Council v. State, Wn.d,, P.d 1 ()). While the trial court must reach the merits of purely legal issues for purposes of deciding whether to grant or deny the preliminary injunction, it may not adjudicate the ultimate merits of the case. Rabon, 1 Wn.d at. A temporary restraining order is intended to preserve the status quo until the court can RESTRAINING ORDER of 1 Pacific Avenue, Suite 0 Phone: () -0 Facsimile: () -0
1 1 1 1 hear an application for a preliminary injunction. State ex rel Pay Less Drug Stores v. Sutton, Wn.d, 0, P.d 0 (0). A TRO is effective for 1 days subject to extension for good cause shown. CR (b). The preliminary injunction is an extension of the TRO. CR (a). B. A Temporary Restraining Order and a Preliminary Injunction Are Appropriate Because Defendants Have Clearly Violated the Medical Lien Statute The pleadings and declarations presented herewith demonstrate that, at all times material to these proceedings, the plaintiffs had a clear legal and equitable right to be compensated for traumatic injuries caused by the actions of third party tortfeasors. This right serves as the basis for the Defendants application for a lien for medical services rendered under RCW 0..0. A medical services lien can only be filed by public and private operators of hospital and ambulance services and every licensed nurse, practitioner, physician, and surgeon who renders service or transportation and care for a patient with a traumatic injury as a result of a tort. RCW 0..0. A valid lien attaches to any claim or right of action that the patient has against the tortfeasor responsible for the traumatic injury and/or his/her insurer for the value of the medical services. RCW 0. et seq. In order to be a valid medical lien, a health care provider must, under RCW 0..0, sign the claim and have it lawfully notarized. Also under RCW 0..0, no person shall be entitled to a medical services lien unless such person files and records a notice of claim within twenty days after the date of such injury or receipt of care, or before settlement is accomplished and payment is made to the injured person. Here, despite obvious deficiencies and falsities detailed above, Defendant Hunter RESTRAINING ORDER of 1 Pacific Avenue, Suite 0 Phone: () -0 Facsimile: () -0
1 1 1 1 Donaldson has used the invalid and fraudulent liens it created and offered for filing with the Pierce County Auditor s Office to infringe on that right; to wit: by encumbering Plaintiff Walker s, Stutz s, Walthall s and Cichon s property rights with invalid and unlawful medical liens, delaying third party recoveries as a result. For example, on or about June 1, Plaintiff Velma Walker agreed to a settlement from a liable third-party tortfeasor. However, to date, a portion of Plaintiff Walker s third party settlement recovery is still being held in trust as a result of the invalid medical services liens recorded by Hunter Donaldson on behalf of MultiCare. Cochran Decl. at. The same is true with Plaintiff James Stutz. In August 1, Stutz also agreed to a settlement from the liable third-party tortfeasor. Cochran Decl. at. Like Plaintiff Walker, a portion of Plaintiff Stutz s third party settlement recovery is still being held in trust as a result of the invalid medical services liens recorded by Hunter Donaldson on behalf of Defendant MultiCare and Defendant Mt. Rainier. Cochran Decl. at. In July 1, Plaintiff Karl Walthall agreed to a settlement, as well, from the liable third-party tortfeasor in his motor vehicle collision. Cochran Decl. at. Subsequent to settlement, Hunter Donaldson demanded Plaintiff Walthall satisfy the full amounts of its purported medical liens. Cochran Decl. at. Like Walker and Stutz, a portion of Plaintiff Walthall s third party settlement recovery is also being held in trust because of the invalid medical services lien recorded by Hunter Donaldson on behalf of Defendants MultiCare and Mt. Rainier. Cochran Decl. at. Plaintiff Gina Cichon has yet to file a formal claim against the third party tortfeasor who caused her traumatic injuries. However, Defendants Hunter Donaldson, MultiCare and RESTRAINING ORDER of 1 Pacific Avenue, Suite 0 Phone: () -0 Facsimile: () -0
1 1 1 1 Mt. Rainier have nonetheless placed similarly invalid and unlawful medical services liens against Plaintiff Cichon s right of recovery. Cochran Decl. at. Finally, Hunter Donaldson has utilized this same unlawful and misleading lien practice to obtain third-party settlement funds from thousands of MultiCare s and Mt. Rainier s patients, including Plaintiff Melanie Smallwood. In December 1, Plaintiff Melanie Smallwood agreed to a settlement from the liable third-party tortfeasor. Cochran Decl. at. In February 1, Plaintiff Smallwood satisfied the lien filed on behalf of MultiCare by paying the amount owed as alleged by Hunter Donaldson in full. Cochran Decl. at. Also in February 1, Plaintiff Smallwood satisfied the lien filed on behalf of Mt. Rainier by paying the amount owed as alleged by Hunter Donaldson. Cochran Decl. at 1. However, despite payment of the full amount of these invalid liens, Defendants Hunter Donaldson, MultiCare, and Mt. Rainier have not removed the liens, as required by law. Cochran Decl. at 1. C. An Order Requiring Defendants to Show Cause Why a Broader Preliminary Injunction Should Not Be Entered Because injunctions are addressed to the equitable powers of the court, the three criteria must be examined in light of equity including balancing the relative interests of the parties and, if appropriate, the interests of the public. Butler v. Craft Engineering & Construction Co., Wn. App.,, P.d 1 () (quoting Tyler Pipe Industries, Inc. v. Dept. of Revenue, Wn.d,, P.d 1 ()). The interests of the public are clearly at issue in this case. Defendants have filed thousands of liens with the Pierce County Auditor s Office. Exhibits, & to Cochran RESTRAINING ORDER 1 of 1 Pacific Avenue, Suite 0 Phone: () -0 Facsimile: () -0
1 1 1 1 Decl. Each falsified lien offered by the Defendants to the Auditor for filing is a criminal act under RCW 0..00. And despite assurances to the contrary in the newspaper, Hunter Donaldson is continuing its attempts to collect on its invalid liens filed on behalf of MultiCare and Mt. Rainier. An order requiring all the defendants to show cause why their lien enforcement practice should not be enjoined is appropriate under these circumstances where Defendants acts are either resulting in and will continue to result in actual injury to the property rights of traumatic injury victims throughout our area. VI. CONCLUSION For the foregoing reasons, Plaintiffs request an immediate temporary restraining order under CR (b) against all Defendants, followed by a preliminary injunction pursuant to CR (a) once notice is served on all parties, enjoining Defendant Hunter Donaldson from collecting or enforcing invalid liens it filed on behalf of Defendants MultiCare and Mt. Rainier. Plaintiffs also request the Court issue an order requiring Defendants to show cause why an injunction on behalf of all others similarly situated should not also be entered enjoining Hunter Donaldson s collection and lien enforcement practice on behalf of Defendants MultiCare and Mt. Rainier. // // // // RESTRAINING ORDER 1 of 1 Pacific Avenue, Suite 0 Phone: () -0 Facsimile: () -0
1 1 1 DATED this 0th day of May, 1. PFAU COCHRAN VERTETIS AMALA, PLLC By: Darrell L. Cochran, WSBA No. 1 darrell@pcvalaw.com Loren A. Cochran, WSBA No. loren@pcvalaw.com Kevin M. Hastings, WSBA No. kevin@pcvalaw.com Attorneys for Plaintiffs THE LAW OFFICES OF WATSON & GALLAGHER, P.S. By: /s/ Thomas F. Gallagher Thomas F. Gallagher, WSBA No. tom@wglaw.comcastbiz.net Attorney for Plaintiffs 1 RESTRAINING ORDER 1 of 1 Pacific Avenue, Suite 0 Phone: () -0 Facsimile: () -0
1 1 1 1 CERTIFICATE OF SERVICE I, Laura Neal, hereby declare under penalty of perjury under the laws of the State of Washington that I am employed at Pfau Cochran Vertetis Amala PLLC and that on today s date, I served the foregoing via Legal Messenger by directing delivery to the following individuals: Michael Madden Bennett Bigelow & Leedom 01 Union St., Ste. 0 Seattle, WA 1 Attorney for Multicare Stephen Lee Perisho 00 Saturn St. Brea, CA Registered Agent for Hunter Donaldson Rebecca Rholke 0 La Habra Blvd. La Habra, CA 01 Ralph Wadsworth 0 La Habra Blvd. La Habra, CA 01 James A. Krueger First Interstate Plaza Pacific Ave. #00 Registered Agent for Mt. Rainier Emergency Physicians, PLLC DATED this 0 th day of May, 1. Laura Neal Legal Assistant to Darrell L. Cochran RESTRAINING ORDER 1 of 1 Pacific Avenue, Suite 0 Phone: () -0 Facsimile: () -0