The Herald, Sharon, Pa.

Local News

October 22, 2012

CYS contractor sues over pay

By Joe Pinchot Herald Staff Writer

MERCER COUNTY — An Oil City company has sued Mercer County Children and Youth Services alleging the county agency violated a contract by withholding payments, unilaterally trying to change the pact’s terms and interfering with contracts the company signed with other counties.

CYS filed preliminary objections arguing Michael Thomas and the Thomas Organization sued the wrong entity and the complaint lacked necessary specifics.

Thomas said it signed a contract for the period of July 1, 2010, through June 30, 2011, to provide foster care, family 911 services and transportation, and the pact was extended through June 30.

CYS has withheld money from December through April, Thomas said.

“Beginning during the month of December 2011, (CYS) began challenging (Thomas’) invoices regarding the costs of transportation, specifically what constitutes transport time,” according to the suit filed Sept. 27.

In February, Thomas was notified that CYS would not pay portions of invoices, Thomas said.

In April, “Mercer County conducted a court hearing to transfer all foster families to county licensure without providing notice to (Thomas)” and “contacted various foster families, without (Thomas’) knowledge, and informed them (Thomas) was going out of business and that they must change agencies if they intended to keep their foster children,” Thomas said.

On April, 27, CYS informed Thomas that 78 percent of Thomas’ invoices were not substantiated by driver logs and requested reimbursement of $32,133, Thomas said.

CYS’s “intentional breach” of contract “caused a strain in the business relationship between (Thomas) and Butler County Children and Youth Services,” Thomas said.

Mercer County “instructed and/or encouraged Butler County ... to begin questioning (Thomas’) manner of billing,” Thomas said.

In unspecified ways, CYS also “interfered” with Thomas’ contracts with the Clearfield and Somerset county children’s agencies, Thomas said.

Thomas is seeking more than $450,000 in unpaid services, lost services, costs, attorney’s fees and interest, plus punitive damages for “outrageous acts.”

In its preliminary objections, CYS said Thomas sued the wrong entity – Mercer County would be the proper entity as CYS is a “service function” of the county – and the complaint failed to identify any county employee who interfered with the contract or specific ways in which the agency interfered with out-of-county contracts.

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