Published: August 28, 2008 08:35 pm            

Temporary restraining order signed against Butler, Welborn

NEWTON — A temporary restraining order against Paulette Butler and Bobby Welborn was signed by Chancery Court judge David Clark Thursday.

In the restraining order, the Newton Regional Hospital board alleges that “after being notified of it’s decision to terminate the lease agreement, Paulette Butler, individually and through her corporation, has refused to turn over certain cash monies, accounts, personal properties, fixtures and assets to Newton Hospital, Inc. and in particular she has refused to turn over to Newton Hospital, Inc the Operating Account and Payroll Account in Newton County Bank which is used in the operation of the hospital.”

A hearing on the temporary restraining order is set for Sept. 5 at 9 a.m. in the chancery court in Bay Springs by Clark.

The restraining order makes several allegations against Butler and Bobby Welborn. Those are:

• It alleges that the lease agreement requires Butler to return all the assets back to the Lessor, in the event of termination of the lease.

• That Paulette Butler is claiming this money as her corporation’s money.

• It alleges that “if said funds are taken out of these accounts or if she continues to prohibit Newton Hospital, Inc., from utilizing these funds in the operation of the hospital she will cause irreparable damage and injury to the Plaintiff herein and also will endangers the health, safety and welfare of the public at large who depend on the serviced provided by Newton Hospital, Inc.”

The judge ruled in the restraining order that immediate and irreparable injury would result if Butler was allowed to withdraw funds from the two Newton County Bank accounts or if Butler continues to take actions to frustrate and impede the operation of the hospital by Newton Hospital, Inc.

The restraining order contained the following orders:

• Paulette Butler and Bobby Welborn, as an agent of Newton Regional Hospital, Inc., and individually hereby enjoined from taking any action that would interfere with or frustrate the successful operation of Newton Hospital.

• With the exception of all checks, payroll checks, checks making payments to venders that have been written prior to and through Aug. 22 from the accounts at Newton County Bank in the name of Newton Regional Hospital are hereby frozen and Newton County Bank is hereby prohibited from permitting the payment of any funds out of these accounts except those checks dated prior to and through Aug. 22 but Newton County Bank is hereby enjoined from making any further payments out of said account.

• The defendants, Paulette Butler is “hereby enjoined from transferring, disposing of or wasting the hospital monetary assets on accounts at Newton County Bank, or any other banks wherein hospital funds have been transferred, including any, but not limited to checking accounts, money market accounts, certificates of deposit, bonds or IRA’s.”

• Paulette Butler and Bobby Welborn are hereby enjoined from communicating with or giving any information to creditors and service providers of Newton Hospital, Inc., and from interfering in any way with Newton Hospital’s ability to obtain goods and services.

• Paulette Butler is hereby enjoined from withholding any and all account numbers, identifications, access codes or any other information necessary for the hospital to continue billing and collecting accounts and providing needed services to the public.

• The defendants, Paulette Butler and Bobby Welborn, are hereby enjoined from committing any other acts, conduct or omissions which would impede or frustrate the operation of Newton Hospital, Inc., d/b/a Newton Regional Hospital or that would result in harm to the health, safety and welfare of the person who rely upon the hospital for services.

The hospital board terminated the lease agreement with Butler in a meeting on Sunday and named JoAnn Adams as interim administrator. The move came after a group of 66 hospital employees called a meeting with the board almost two weeks ago citing a list of problems with Butler and asking for her to be moved. At the heart of employee complaints was the lack of payment to vendors which was causing a shortage of critical hospital supplies. The employees gave the board a deadline where they would turn in letters of resignation but let the deadline pass last Friday and the board took its action that Sunday with Butler.

        

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