MEDFORD, Ore. – One of the Rogue Valley’s premier retirement centers is suing their cooperate counterpart, asking to separate themselves after what they say were, “detrimental actions to their facility.”
The Rogue Valley Manor has filed suit against it’s sole corporate member, Pacific Retirement Services, which it created in 1991. After several months of intense negotiations between the Rogue Valley Manor Board and Pacific Retirement Services board, the two parties reached an impasse and the board filed a lawsuit in Jackson County Circuit Court on Friday, asking to become autonomous.
The manors attorney Thomas McDermott says several factors have contributed to this decision. The biggest complaints are management fees, that they say will total $2.7 million this year. They believe these fees are in excess of what the organization needs to provide their services and attorneys say they are actually profiting from the manor.
After learning of the suit Friday afternoon, McDermott says PRS placed the manors executive board member on paid administrative leave and sent notice of possible termination of other board members. In statement to NewsWatch 12, PRS explains: “Since May, PRS has carefully considered concerns voiced by the RVM board, offered proposals to address these concerns, and repeatedly requested that the RVM board offer its own proposals for resolution. RVM has been unwilling to do so.”
The manors attorney says they have asked the court for temporary restraining order to allow them to go back to way things were and ask that the manor’s board not be terminated for time being until court hears the case. Right now, most residents will not notice any changes, but as the lawsuit unfolds, it could impact the board of directors, which is the group that oversees manor operations.