Estate of William T. Rogers - Page 11




                                       - 11 -                                         

          Rogers, however, received $32,500 from the 1997 sale of the                 
          properties.                                                                 
          Discussion                                                                  
               We must first decide whether, during 1991, Mr. Rogers                  
          received a compensatory interest in the nonhospital properties as           
          payment for his services in arranging the transaction between AMH           
          and Vista.  Because respondent raised this issue for the first              
          time in the amended answer, respondent bears the burden of proof.           
          Rule 142.                                                                   
               Respondent contends that a compensatory interest in the                
          nonhospital properties was transferred to Mr. Rogers during 1991            
          as payment for his services in arranging the transfer of the                
          hospitals from AMH to Vista.  None of the numerous stipulated               
          documents, however, refer to any such payment.  Rather, the                 
          stipulated documents show that Alpha Hospital received $475,000             
          for the transfer of its rights to the hospitals and nonhospital             
          properties from AMH.  Additionally, Alpha Hospital was awarded              
          lucrative management contracts at both hospitals for which it was           
          to be paid a combined $600,000, plus 2 percent of the net patient           
          service revenues annually.  The only documentary evidence of Mr.            
          Rogers' interest in the nonhospital properties is the agreement             
          dated January 15, 1991.  In that agreement, Mr. Rogers                      
          transferred his interest in the contract between Vista and AMH,             
          with respect to the nonhospital properties, to Great Western in             





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011