SEIU-UHW’s Dave Regan has lost another court
battle against the California Hospital
Association (CHA).
Last Friday,
a judge ordered SEIU-UHW to submit
to binding arbitration over $34 million that Regan squirreled away inside a
secret “partnership” organization. A copy of the judge’s order, issued November
18, 2016, is pasted below. In September, Tasty described
the CHA’s lawsuit to recover the millions that Regan is sitting on.
Where does
the money come from?
In 2014,
Regan and CHA’s Duane Dauner signed
their secret
partnership deal and also agreed to create a secret new organization to
carry out joint projects.
How was the organization funded?
Regan and Dauner
diverted a combined $50 million from their respective organizations’ treasuries
and steered the massive haul of cash into the secret group, named “Caring
for Californians.”
In late
2015, Regan’s partnership with the CHA collapsed. Under the terms of the secret
deal (detailed in the so-called “Code of Conduct”), the remaining unspent
portion of the $50 million was supposed to be returned to SEIU-UHW and CHA.
That was supposed to happen on January 1, 2016.
However,
Regan -- in an apparent fit of vindictiveness -- refused
to return the money to either
organization. Instead, he has allowed the money (including SEIU-UHW’s portion,
totaling $6.9 million) to be frittered away on no-show jobs, unused offices in
Sacramento, an expensive Executive Director, etc.
So, CHA sued
to get its money back.
On Friday,
November 18, a judge issued a five-page ruling (see below) siding with CHA and ordering
SEIU-UHW and Regan to submit to binding arbitration over the $34 million. Here’s
an excerpt from the judge’s decision. The term “CFC”
refers to “Caring for Californians,” the secret partnership organization
holding the $34 million.
In December 2015, the [Code of Conduct] Agreement terminated pursuant to its terms, and CFC has had no ongoing work. The CFC continues to spend approximately $40,000 per month on operating expenses. CHA has requested that UHW agree to redistribute the unencumbered CFC funds, but UHW has refused. As of September 2016, CFC has approximately $34 million in its accounts that is not currently encumbered, thus $27.2 million would be returned to CHA and $6.87 million would be returned to UHW.
CHA's arbitration complaint alleges that UHW breached the Agreement by refusing to agree to the return of the unencumbered funds. CHA's complaint apparently seeks an "order compelling UHW to agree to the redistribution of funds, or, in lieu of UHW's agreement, an order directing the redistribution of the funds."
…the petition to compel arbitration is GRANTED.
If Regan
loses the arbitration, SEIU-UHW will be forced to return the money and
pay expensive legal fees to CHA.
This latest lawsuit offers yet another window onto Regan's collusive, backroom deals with employers that represent Dollar Dave's primary mode of operation. The lawsuit once again raises questions like these:
- Why is SEIU-UHW, one of California's largest healthcare workers' unions, pooling $50 million with the hospital industry's Chamber of Commerce?
- Why is one of SEIU's main leaders signing secret deals that are hidden from SEIU's own members?
- What other deals has SEIU-UHW signed with employers that have not yet been revealed?
Stay tuned
