Summers Deposition Exposes His Incompetence In Business and His Untrustworthiness as a Fiduciary

[Brian Essi]

So whoever said Summers is a competent businessman is dead wrong.

1. He repeatedly said that the "bricks and mortar" of the hospital were unimportant---but he negotiated a deal where we are stuck with what he described as aging and now gutted "bricks and mortar" subject to a restrictions on parking and non competition making it virtually worthless.

2. He testified that Subsidium did not value the hospital because "we weren't selling this hospital" -but Subsidium's valuation is posted on the city website--and he "sold"everything of value from the hospital for a song.

3. He negotiated a price that is more than $100M less than the Subsidium valuation claiming that values weren't important--he said it was about the best healthcare and "partner" but there is no contractual guarantee of any healthcare service at all from the "partner" who got the $100M for free and there has been a mass exodus of doctors from Lakewood since he announced his deal.

4. He testified that he did not understand the underlying agreements governing the hospital that he was in charge of safeguarding for us for over 5 years--he testified he didn't fully undertake the Master Agreement that he negotiated.

5. He said he "believed them" [CCF] and knew it was "risky" proceeding with his "plan". What a fool.

6. He testified that we did not need an investment banker on the hospital deal because "we didn't get that far" but when he sold his grandpa's business he hired an investment banker to sell what he inherited.

One Councilmember told me about their endorsement of Summers last fall: "I know there is a trustworthy problem with him [Summers] but I'm backing him because of his competence."

Huh? Hmmmm

[Michael Deneen]

Many of Summers' defenders instinctively call him "a great businessman" even though he inherited his wealth.

Mr. Trump is proving that rich people are not inherently capable of holding public office.

[Brian Essi]

Many of Summers' defenders instinctively call him "a great businessman" even though he inherited his wealth.

Mr. Trump is proving that rich people are not inherently capable of holding public office.

Mike,

Trump has never held public office and likely never will.

I understand the attempt to compare the two men, but one is an accomplished negotiator and the other a complete failure at the negotiating table.

[Lori Allen _]

Wow, I guess Summers and Obama are a lot alike! I only wish that we would have had Donald Trump for the last eight years instead of a terrorist supporter who has done everything to make our country completely unsafe. I just thought I would add my two cents worth since Mike D. has to make everything political! I thought that politics had to be posted in Global Discussions.

Just wondering.

[Amy Martin]

Wow, I guess Summers and Obama are a lot alike! I only wish that we would have had Donald Trump for the last eight years instead of a terrorist supporter who has done everything to make our country completely unsafe

Speechless . . . . .

[james fitzgibbons]

Wow, I guess Summers and Obama are a lot alike! I only wish that we would have had Donald Trump for the last eight years instead of a terrorist supporter who has done everything to make our country completely unsafe. I just thought I would add my two cents worth since Mike D. has to make everything political! I thought that politics had to be posted in Global Discussions.

Just wondering.

Are you serious?

[todd vainisi]

Wow, I guess Summers and Obama are a lot alike! I only wish that we would have had Donald Trump for the last eight years instead of a terrorist supporter who has done everything to make our country completely unsafe. I just thought I would add my two cents worth since Mike D. has to make everything political! I thought that politics had to be posted in Global Discussions.

Just wondering.

[Lori Allen _]

Since there appears to be so much confusion, the point I was trying to make is that Mike Deenen has to make everything here on the Deck about politics. We should be a community working together. I think you all are making a big deal out of nothing. FWIW

[Jim O'Bryan]

Since there appears to be so much confusion, the point I was trying to make is that Mike Deenen has to make everything here on the Deck about politics. We should be a community working together. I think you all are making a big deal out of nothing. FWIW

Lori

We all bring what we bring, an through it all try to make some sense of it.

However, this is some amazing BS going on here, and it is freaking me out how people think yawn...

Here is what a real city with real people think when elected officials break sunshine laws, ironically Lakewood, Colorado!

Did a Lakewood city councilor violate Sunshine Law?
http://www.coloradoindependent.com/1585 ... nshine-law

Here in Ohio you reward politicians that break them for personal agendas.

.

[cmager]

Let's get this post back on track.

Summers sold his grandpappy's business (# of employees?) for $20-25M, with the assistance of investment banking and legal advisors? Was this a particularly complex business, or difficult to value? Was Summers known to have operated his inheritance with great skill?

* Yet Summers "sold" LH, a far more complex business in a complex industry, with 1000+ employees, with complicated obligations and partnerships and financial structures.
* Yet Summers "sold" LH, acting merely as a fiduciary for the owners of LH - the citizens of and City of Lakewood - when in deposition he admits that he did not understand the LH governing documents or the "sales" agreement?
* Yet Summers "sold" LH, to a far more sophisticated and rapacious partner, a "for-profit" hospital chain with a very different agenda than that of the City of Lakewood?
* Yet Summers "sold" LH, without the assistance of the most expert and experienced investment banking and legal advice (excluding Kevin Butler, of course), apparently relying on the expertise and representations of "his" partner?

Summers is not the owner of LH, and does not appear to apply any standard of care to his fiduciary role. If Summers does not represent the owners as a competent fiduciary, who does he represent?

[Brian Essi]

Let's get this post back on track.

Summers sold his grandpappy's business (# of employees?) for $20-25M, with the assistance of investment banking and legal advisors? Was this a particularly complex business, or difficult to value? Was Summers known to have operated his inheritance with great skill?

* Yet Summers "sold" LH, a far more complex business in a complex industry, with 1000+ employees, with complicated obligations and partnerships and financial structures.
* Yet Summers "sold" LH, acting merely as a fiduciary for the owners of LH - the citizens of and City of Lakewood - when in deposition he admits that he did not understand the LH governing documents or the "sales" agreement?
* Yet Summers "sold" LH, to a far more sophisticated and rapacious partner, a "for-profit" hospital chain with a very different agenda than that of the City of Lakewood?
* Yet Summers "sold" LH, without the assistance of the most expert and experienced investment banking and legal advice (excluding Kevin Butler, of course), apparently relying on the expertise and representations of "his" partner?

Summers is not the owner of LH, and does not appear to apply any standard of care to his fiduciary role. If Summers does not represent the owners as a competent fiduciary, who does he represent?

You got it Mr. cmager

[james fitzgibbons]

Let's get this post back on track.

Summers sold his grandpappy's business (# of employees?) for $20-25M, with the assistance of investment banking and legal advisors? Was this a particularly complex business, or difficult to value? Was Summers known to have operated his inheritance with great skill?

* Yet Summers "sold" LH, a far more complex business in a complex industry, with 1000+ employees, with complicated obligations and partnerships and financial structures.
* Yet Summers "sold" LH, acting merely as a fiduciary for the owners of LH - the citizens of and City of Lakewood - when in deposition he admits that he did not understand the LH governing documents or the "sales" agreement?
* Yet Summers "sold" LH, to a far more sophisticated and rapacious partner, a "for-profit" hospital chain with a very different agenda than that of the City of Lakewood?
* Yet Summers "sold" LH, without the assistance of the most expert and experienced investment banking and legal advice (excluding Kevin Butler, of course), apparently relying on the expertise and representations of "his" partner?

Summers is not the owner of LH, and does not appear to apply any standard of care to his fiduciary role. If Summers does not represent the owners as a competent fiduciary, who does he represent?

The answer seems obvious he represented Cleveland Clinic, what is the underlying reason? Will we ever find out? Will justice prevail? How connected is he, and how will it help? Can his friends possibly pull him out of this unscathed? Of course he had help, will his helpers ( a long list ) get away with it? Is he not shaking in his boots? He seems to be carrying on like nothing happened.

[Jim O'Bryan]

Was Summers known to have operated his inheritance with great skill?.

Summers Rubbers was worth more at the time of the sale then when his father stepped down, which is no reflection on his father, a really good human.

There are many factors in business that can make you successful or not. Some real, some illusionary.
I believe the comment at the time was that it was easily worth twice as much under 3rd generation management.

Personally I would rather stick to how bad this nightmare was handled, than how the Summers family ran the Summers family business.

.

[cameron karslake]

Since there appears to be so much confusion, the point I was trying to make is that Mike Deenen has to make everything here on the Deck about politics. We should be a community working together. I think you all are making a big deal out of nothing. FWIW

Lori,

Just look at this thread's title, hard to avoid politics when our very own defendant mayor Mike Summers is in the first sentence.

Just say'n.

[cmager]

Summers Rubbers was worth more at the time of the sale then when his father stepped down, which is no reflection on his father, a really good human. There are many factors in business that can make you successful or not. Some real, some illusionary. I believe the comment at the time was that it was easily worth twice as much under 3rd generation management. Personally I would rather stick to how bad this nightmare was handled, than how the Summers family ran the Summers family business.

.

Fair enough.
The intent is to attempt a simple assessment of Summers' as "competent" businessman. Was he a simple owner/operator of a simple business, a simple owner/operator of a sophisticated business, a sophisticated owner/operator of a simple business, or a sophisticated owner/operator of a sophisticated business. If one can reasonably place him within one of these quadrants, one can begin to predict how Summers' would likely fare in his fiduciary (oops, owner) role at LH. After all, past is prologue. Or is it?

I invite others to offer their assessment.

No matter which quadrant, Summers apparently sold his inherited business with professional assistance, a standard of care that his family stakeholders likely expected of him. Yet for LH, Summers engaged a very/very/very sophisticated operator in CCF, in a very/very/very sophisticated business, in a very/very/very sophisticated industry, in very/very challenging times.

And for this huge task, Summers appears to have relied upon a manipulated consultant, relied upon in-house counsel (Butler, yes), and relied upon his (oops, our) rapacious partner.

Past is prologue. Or is it?