The Citrus Memorial Health Foundation has been granted a temporary injunction against the Citrus County Hospital Board (CCHB) in a ruling coming out of the Second Judicial Circuit Court in Leon County.

The legal action was sought by the foundation, alleging the bill signed into law on by Gov. Rick Scott on June 24, and effective on July 1, was unconstitutional because it retroactively impairs the foundation’s contractual rights under Florida law and was a denial of due process under the U.S. Constitution.

According to Circuit Court Judge Jackie L. Fulford’s “findings of fact,” the just-passed law would give the hospital board trustees total control over the foundation, a not-for-profit agency.

That includes control all of the foundation’s revenues, not just tax-funded appropriations, cause the foundation to lose its existing right to elect any directors without the board’s approval and cause the foundation to lose any existing right to make its budget without the CCHB’s approval, will lose its existing right to make its budget without CCHB’s approval.

The judge concluded that the Foundation has a substantial likelihood of success on the merits, and that the effect of the Special Law is to retroactively alter the foundation’s rights under its contracts and articles, which constitute a contract. Fulford said that he Special Law specifically directs the foundation to rewrite its existing Articles to create a governance regime that would place it in the minority in terms of voting rights.

The judge also wrote, “The Foundation has a substantial likelihood of success on the merits not only under the impairment of contracts clause, but also under the Florida due process clause.” Judge Fulford added, “By attempting to give CCHB control over the Foundations Board, in place of CCHB’s current minority voting status, the Special Law materially impairs those contract terms, thereby retroactively depriving the Foundation of the full value of its vested rights under these long-term agreements.”

The judge also noted that the foundation will suffer irreparable harm in the absence of an injunction, without an adequate remedy at law. Further, the judge said, “The status quo is dramatically altered immediately upon the Special Law taking effect, as CCHB will be required both to seize control of the foundation and to alter the provisions of the Lease and Agreement.”

Finally, the judge said, “It is not in the public interest to have the hospital in turmoil, with its governance rights abruptly altered, especially where that hospital has important responsibilities for indigent health care. It this dramatic change in the hospitals operations should ever take place, it would occur only after a final determination of its legality.

Judge Fulford ordered that the injunction be granted to the foundation until such time as the matter reappears in court, which will be at trial at 7:30 a.m. on Oct. 27. In the interim, the board of trustees will not be allowed to implement Section 16 of that Special Law, and the foundation does not have to comply with that section.

The judge also ordered that the foundation post a $1 million dollar bond until the trial date.