Letter from OSA 6 Apr 1989
6 April 89
CLEARWATER, FL. 34617
Legal Aide's Comm OSAI
FLB Fin Dir
I received your letter nudging me to respond to your petition of 22 Feb 89
I approved your petition on the portion dealing with the legal aspects
of your petition when I first received it. However, I could not approve
it in total as I am not a finance authority.
I did research out thoroughly the LRH references on the payment of
staff medical bills, and I attached the issues I found to my
recommendation to the FBO FSO that your petition be fully approved and
implemented. LRH does state in no uncertain terms that a staff members
medical bills are covered under his staff agreement and there is no
question in my mind that these bills should be paid by the FSO. In a
court of law, the FSO will be held fully responsible for your bills as
it is part of your legally binding staff agreement.
Since that time, there has been non-compliance on getting your
bills on the FSO bills summary and this is being handled. I would like
you to write a full KR on this whole sit in PT, as the Purser is right
now getting a comm ev and she is the party responsible for your bills
being taken off the bills summary. Please get this to me in the next 48
hours and I will see it gets to her comm ev secretary.
While this is getting sorted out, continue to maintain a low
profile. I want to get all your bills on the bills summary this week.
From that point on, legal will have the authority to say it is an org
bill and get in comm with the attorneys/collection agencies and prevent
these from becoming lawsuits. Another 4 or 5 of your medical bills have
been sent to collection agencies, as
they have come to me through the legal mail line. These are all addressed to FSO Corp and not yourself.
What I would like to see, which you have not addressed in your
petition, is do you have any reentry program to the Sea Org? Once this
medical sit is fully handled, are you then able to return to active
duty? Since you are a Class 9 auditor, you are a valuable resource and
I want to find out about your status. Please let me know on this as the
ideal scene, based on what I know of your sit, is to get you fully
recovered and back on staff in the FSO.
I look forward to getting your reply to the above. Please give me your phone number so we can keep in comm.
Legal Officer OSA FLAG
25 March 1989
Dir Legal Affairs, OSA Flag
OSA INT—Legal Dept.
(2) Captain FSO
(1) Captain's Yeoman FSO
P.O. Box 96
This follows my letter to you of 14 March, 1999.
Did you receive that letter?
Today, I received the attached letter from the BFO FSO.  As per my
last letter to you, the Purser's position is that the Church is not
responsible for the medical bills and has so informed at least one of
the creditors on this cycle, in writing.
I still have received no answer to my CSW  to the Captain. As
you know, I also have a petition to the Dir Legal Affairs, 0SA Flag,
due to the legal aspect of this sit. A copy of that petition was
included with the CSW received by you and sent to the Captain, FSO.
As time goes on, the likelihood of legal action becomes greater.
You see, a creditor, in order to protect his interest, must file a
lawsuit within one year of the date of occurrence or service. The
hospital in my case has already demonstrated that they intend to pursue
whatever avenues necessary to collect their fees, including hiring an
attorney as well as a collection agency. Likewise, at least one of the
doctors involved intends to pursue legal action if necessary in order
to collect on their bill.
As a further R/factor  to my physical condition at the time the
bills were incurred, I was very sick and could barely sit up without
fainting. I could not walk, and I would faint on practically any
physical exertion, like rolling over in bed. It was necessary for the
MLO  to take care of me when I was not in the hospital. I was
bedridden from June, 1988 until well after I routed out of the SO in
October, 1988. My point here is that I utterly depended upon the MLO to
take care of the admin of my medical handling, as it is
her hat, and I was given no
indication at all that there was going to be difficulty on finance
lines. Furthermore, on the second admittance to the hospital, I
personally witnessed the MLO make a promise to the hospital's bills
dept. that the Church would honor all medical expenses for both of the
I am in disagreement with the BFO's recommendation that I work this out with the Dir I & R and Purser.
This is not
a matter which is open for negotiation, with either HCO or the Purser; neither is it an ethics situation, as is being implied.
If there was any financial irregularity, it was committed by the MLO, by promising that the Church would pay. I
did not violate any purchasing policy; I made no purchase orders on my
own and I will not accept any condition commensurate with such an
The LRH policy on the subject of medical expenses for staff is very clear.
References are given in my KR of 4 Dec, 1988.
The Church is
named as the party responsible for payment right on the hospital
records, as authorized by the MLO. As I have no attachable assets and
as I am still not working, the Church would be the likely target in any
lawsuit, in my opinion.
Furthermore, all the bills were
on the Bills Summary until approximately mid-November, which is evidence that the FSO was
going to honor the bills. I routed out on October 21, 1988. Apparently,
there was an arbitrary entered in that I could be made liable for the
bills since I was no longer in the SO. Not Okay. Besides, as you know,
even the attorney's involvement predated my departure from the SO. I
routed out after an FB turndown due to illness.
Please attach this letter to my CSW to the Captain and ask that the CSW be answered and returned to me ASAP.
 BFO: probably stands for Base Finance Officer.
 CSW: "Completed staff work" is an internal despatch that presents
the problem or "situation", all the data about it and a recommended
solution for the senior to approve or disapprove.
 R/factor: "Reality factor." In this context it's a statement about the way things are.
 MLO: Medical Liaison Officer.
My ordeal on Flag medical and OSA lines
22 February, 1989
Dir Legal Affairs, OSA Flag
Clearwater, FL 34617
OSA Int (Info—Legal Dept.)
cc: Flag Data Files
I am being threatened with a lawsuit for non-payment of medical bill[s] which were incurred while I was in the SO at FSO.
I am attaching a copy of my 4 Dec 88 KR, which outlines the details of
how the medical bills came about. To date, the only response I have
received from the terminals listed on this KR has been the Snr
Chaplain, FSO, who acknowledged that my position in this matter appears
to be per policy. In addition to writing this KR, I have sent several
despatches, including CSWs, to various terminals within FSO, in effort
to resolve the payment of these bills. After repeated attempts to
elicit any response, I wrote to the Dir Comm earlier this month and
asked that the matter be handled per HCO PL 17 July, 1966, Vol 0, page
On 21 Feb, 1989, I received a package of letters from the Dir Comm
FSO. These were letters addressed to me and sent to the FSO. Some of
these letters date back to October, 1938. (I have written a KR on the
Dir Comm, as I had properly informed him/her by despatch of 29 Oct,
1988 of my forwarding address.) Among the letters I received on 21 Feb
was a letter of representation from Attorney Thomas J. Donnelly, dated
13 October, 1988. I am attaching a copy of his letter. Please note that
the envelope to this letter was marked "Legal OK FSO"—but the letter
had not been opened prior to my receipt.
Please also note that the attorney was retained and the letter sent out prior
to my having routed out of the SO. Receipt of his letter yesterday was
the first indication I have had that there is now a legal situation.
I am attaching a copy of a bill I received yesterday via the same
package. As you can see, the bill is in the amount of $6,603.30. This
figure differs from that given in the attorney's letter, probably
because it includes charges from two hospitalizations, whereas the
attorney's figure represents charges from only one hospitalization.
Apart from this bill, there is an estimated additional $10,000 in bills
from various doctors, radiologists, etc., who performed services during
my hospitalizations, and which bills may be in some stage of
legal/collection proceeding. I received several of these bills
yesterday, and can produce them. However, until I left the SO on Oct
27, 1988, all bills received to that date were, per prior arrangement,
personally given to the ML0, who relayed them to the Bills Payment
My hospitalizations were fully authorized. During one of the
admissions, I witnessed the ML0 promise the hospital's account
department terminal that the Church would honor the bills. The Church
of Sen is listed as responsible party on the bill as well as on the
hospital's admitting records.
I will maintain a low profile with the attorney, pending your
advices. I have not been served with a Summons & Complaint. I
believe the Statute will run some time in August, however it is very
possible that suit has already been filed.
Quite aside from the fact that I am not in a position financially
to bypass and handle the bills myself, the LRH policy on the subject is
clear. It is the SO's responsibility to cover medical bills for SO
members. (Ref. F0 730 and HCO PL 11 June SIR, Violation of Staff
With this petition I request that:
a) the attorney be contacted by your dept., and that I be kept apprised of developments,
b) the Clearwater Community Hospital's bill be paid immediately,
c) an order be originated that Treasury contact all remaining creditors and place their bills back on the dateline, and
d) an order be originated that FP Committee place the bills back on
the Bills Summary and that these be handled as soon as possible.
Thankyou very much for your attention and consideration.
Knowledge Report 4 Dec 1988
4 December, 1988
Dir I & R FSO
c/o Box 96
Clearwater, FL 34617
Dir Disbursements, FSO
FP Committee, FSO
Senior Chaplain, FSO
Qual Sec, FSO
OSA PR, FLAG
LRH Comm, FSO
Flag Data Files
On October 27, 1988, I routed out of the SO at FSO, after having been fitness boarded due to an extended illness.
While still in the SO, I had been hospitalized on two occasions as a
result of this illness. These hospitalizations occurred in June and
July, 1988. I had also seen a few doctors prior to being hospitalized.
Following the last hospitalization in July, it was necessary for me to
see a heart specialist at his clinic (one time) and I also went to
Morton Plant emergency room one time. As near as I could estimate,
medical bills, including three weeks' hospital, total approximately
Each and every hospital and clinic expense was authorized by the MLO, via my C/S. Purchasing liability of staff would not apply.
Following my hospitalization, and while still in the SO, I
personally received several calls from medical facilities, inquiring
about my outstanding bills. At the advice of the MLO, I referred these
calls to Dept 8.
One doctor's office called me twice prior to my leaving the SO. On
the first occasion, I asked that this office (Dr. J. Ruiz, 3001
Eastland Bl, Clearwater, FL (813) 797-7566) resubmit their bill to me
and that I would ensure that the billing would be received by the
proper terminals. Upon receipt of the resubmitted bill, I had the MLO
hand deliver it to Dept 8. Nevertheless, the doctor's office called me
again several weeks later and told me that they had still not been paid
and that Dept 8 was still denying receipt of their bill. To make a long
story short, this office has sent five
copies of their bill to the FSO and the receipt of this bill is still being denied, according to Marjorie at Dr. Ruiz' office.
Last week I had to make an appointment to see a dentist. As I have a
particular heart condition which makes it necessary for me to take
antibiotics prior to getting dental treatment, I had to call Dr. Ruiz'
office for a prescription. I again spoke with Marjorie and she informed
me that their bill has still not been paid. She told me that she has
been getting very bad treatment when she calls about the bill. She told
me that one of the people she has spoken with is a woman by the name of
Williams or Williamson. Marjorie told me that this person was very rude
with her and at one point in an agitated tone of voice asked Marjorie
how she expected the Church to pay her bill when the Church was still
working on bills from March and April. This was gross out PR and it ARC
broke Marjorie, especially since she had apparently not been given an
R-Factor on how and when her bill would be paid.
After this call with Marjorie, I called Dept 8 myself, and spoke
with Paul Johnson. He told me that he has recently come back into the
area, and I believe that he told me that he has been on mission. I
spoke with Paul briefly about the problem, as above.
To my astonishment, Paul told me that about two weeks ago, the FP
Committee elected to take all my medical bills off the Bills Summary,
after deciding that since I am no longer in the SO, I should be made
responsible for the payment of these bills.
I borrowed a small amount of money when I routed out to cover my
living expenses during my recuperation. Due to my current scene it is
completely unreal to expect that I be made responsible for the payment
of these bills. But regardless of my physical sit, the action taken by
the FP Committee is off-policy. The SO is
responsible for medical expenses incurred by SO members.
At one point several weeks before I routed out, it was necessary for me
to see a heart specialist. At that time the MLO informed me that the
Church would not allocate or otherwise authorize any more money for my
medical bills, as I was being FBed. Of course, I did not submit any
more bills for payment, but at no time was I ever told or given any
impression that the Church was not going to honor the bills already
incurred and submitted for payment.
Per FO 732, 16 May 1968, Allowances
, by LRH, a Sea Org member is supposed to get medical expenses.
Per HCO PL 11 June 1981R, Violation of Staff Covenant
, medical is not charged for.
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