ST. CROIX — A former president and chief executive officer of Schneider Regional Medical Center who was terminated in 2008 five weeks before charges were filed against him is suing the St. Thomas hospital for failure to pay his attorney’s fees as required by its bylaws after he was exonerated in 2022 of all fraud, theft, embezzlement, and conspiracy charges.
Amos Carty Jr., who served as SRMC president and CEO from November 1, 2007 until his termination on or about September 1, 2008, filed a complaint Tuesday in Superior Court, Division of St. Thomas/St. John against the Virgin Islands Government Hospitals and Health Facilities Corporation d/b/a Schneider Regional Medical Center.
Carty was hired as the hospital’s general counsel in 1999 and subsequently appointed in 2003 as the chief operating officer and general counsel until his appointment as president and CEO, according to the complaint filed by attorney Clive Rivers.
As an additional officer of the Government Hospitals and Health Facilities Corporation, also known as the territorial hospital board, by virtue of his position as SRMC chief operating officer, Carty is entitled to mandatory indemnification, or compensation for harm or loss, pursuant to the hospital’s bylaws given his complete success. The hospital has failed and refused to indemnify Carty and has refused and failed to pay his attorney’s fees, expenses, and costs as required by its own bylaws all to plaintiff’s damage, according to the lawsuit.
Carty was terminated from his position as the hospital’s CEO on or about September 1, 2008 by letter from Lynn Millin-Maduro, who served as the vice chair of the territorial hospital board.
On October 6, 2008, the VI government charged Carty, Rodney Miller Jr., also a former CEO of the hospital, and Peter Najawicz, a former SRMC chief financial officer, with numerous offenses stemming from their tenure with SRMC. Carty succeeded Miller as CEO.
After more than a decade of proceedings, including a trial that resulted in a mistrial, a six-week jury trial commenced on October 9, 2019 and concluded on November 14, 2019. The jury found Carty, Miller, and Najawicz guilty of all charges, totaling 44 counts between them, according to the Supreme Court’s opinion. In its January 9, 2020 judgment and commitment, the Superior Court dismissed two of Carty’s convictions and sentenced him with respect to the remaining convictions to a combined period of one year in prison. Carty appealed to the Virgin Islands Supreme Court.
The Supreme Court issued its final opinion in the related criminal proceeding on February 24, 2022. Carty was exonerated of all fraud, theft, embezzlement, and conspiracy charges, according to the complaint. The Supreme Court remanded to the Superior Court for issuance of judgment of acquittal on all counts. The judgment of acquittal was entered by the Superior Court on March 21, 2022.
Additionally, the Supreme Court’s January 9, 2020 judgment and commitment adjudicated Najawicz guilty of numerous offenses stemming from his employment at the hospital, but the prosecution failed to introduce sufficient evidence to sustain his convictions for obtaining money by false pretenses, embezzlement of fiduciaries, and conspiracy, according to the Supreme Court’s February 24, 2022 opinion. Najawicz was exonerated of all fraud, theft, embezzlement, and conspiracy charges, and his conviction was only upheld under the certifying officer statute.
Najawicz was convicted under a single statute, the certifying officer statute. By virtue of accepting the position of chief financial officer, he automatically became the certifying officer. As found by the Supreme Court, he performed no intentional fraud or deceit in violating the statute. He is entitled to permissive statutory indemnification pursuant to the Virgin Islands Code, Title 13, Section 67a(a) given his successes. He filed a complaint against the hospital on February 15 that seeks all incidental, statutory, and consequential damages for the hospital’s failure to indemnify him as required by statute. A bench trial is scheduled for June 3, 2025.
Carty’s case is similar to Najawicz’ case.
SRMC was and is, pursuant to its own bylaws, obligated to indemnify and pay Carty for all attorney’s fees and costs in all litigation, including trials and appeals in the related criminal proceedings. The hospital has failed and refused to pay and has failed and refused to make money available for the payment of Carty’s attorney’s fees.
Throughout the criminal proceedings against him, Carty maintained that he acted in good faith when he provided legal advice to the territorial hospital board, according to the complaint. The Supreme Court concluded that the government failed to prove that Carty did not act in good faith. The court also held that it is unconstitutional for a government to criminalize the giving of good faith legal advice by a duly licensed lawyer to a client, even if that legal advice is ultimately incorrect.
Carty, who demanded a jury trial, is suing SRMC for all incidental, statutory, and consequential damages for its failure to indemnify him as required by its bylaws, as well as for costs and attorney’s fees connected to his complaint.
