Free Statement - District Court of Arizona - Arizona

Exhibit A

Exhibit A

Doc. #493167 v.1

Case 2:04-cv-00347-FJM

Document 153-2

Filed 03/02/2006

Page 1 of 3

EXHIBIT A STIPULATED JOINT STATEMENT OF THE CASE Correctional Services Corporation, a private company, operated the Florence West prison for the State of Arizona, pursuant to a contract with the State. Correctional Services

Corporation, which we will refer to as " CSC,"arranged for another private company, the defendant Correctional Medical Services, Inc., which we will refer to as " CMS,"to provide medical care to inmates while at the Florence West prison. CSC also had a similar arrangement to operate another state correctional facility known as the Phoenix West Correctional Facility. CSC and CMS entered into a similar arrangement for CMS to provide medical care to inmates at Phoenix West Correctional Facility. This case arises out of two separate claims one made by a prisoner at the Florence West Prison the other by the wife and family of a prisoner at the Phoenix West Correctional Facility. One of the claimants, Mr. Valdez, an inmate at Florence West prison, sued CSC and the State of Arizona, alleging among other things, improper medical care and obtained a judgment against the State. In that case CSC for a time defended itself and later was defended by plaintiff Northland Insurance Co. In the other case the survivors of Mr. Perez, an inmate at the Phoenix West Correctional Facility, sued the State of Arizona, CSC, CMS and Maricopa County, alleging among other things, improper medical care. In that case CSC defended itself and was defended by Northland. In this case plaintiff Northland seeks to recover money paid by CSC to defend the Valdez and Perez claims as well as the money paid by Northland on behalf of CSC to settle the Perez claim. CSC has transferred to Northland any right it might have had to recover these moneys from defendant CMS. Northland claims that CMS breached its contract with CSC as relating to the insurance provisions of the contract between CSC and CMS as applicable to the Valdez Claim. Northland also asserts that CMS made fraudulent representations and/or concealed material facts and

Case 2:04-cv-00347-FJM

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information regarding the insurance coverage that CMS was obligated to provide to CSC. Northland further claims that as a direct result CSC incurred costs defending itself with respect to the Valdez claim that should have been paid by CMS or its insurer. CMS denies these allegations and asserts that any costs incurred by CSC were properly its own obligation and/or to the extent those costs should have been paid by CMS' insurer they were not paid due to the insolvency of CMS' insurer and not due to any breach or fault on the part of CMS. In claims relating to Mr. Perez, Northland asserts that it paid amounts to defend and settle the liability of CSC and the State, and that CMS is responsible for those costs. Northland also asserts that CMS breached its contract with CSC relating to the medical care provided to Perez. Defendant CMS denies that it is liable for any amounts relating to Mr. Perez.

Case 2:04-cv-00347-FJM

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Doc. #493167 v.1

Filed 03/02/2006

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