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Former Grady CEO sues, saying firing 'malicious'


The Atlanta Journal-Constitution
Published on: 05/12/08

The former chief executive of Grady Memorial Hospital asserts in a lawsuit that the hospital board chairwoman orchestrated his firing so she could assume his $600,000 a year job.

Otis Story contends in the lawsuit filed last week in Fulton County Superior Court that Grady board chairwoman Pam Stephenson's conduct was "willful, malicious, fraudulent, wanton, oppressive, reckless."

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The suit says Stephenson's intent was to take Story down so she could increase her control over Grady hospital and increase her personal income.

Story also sued the Grady board and is asking for $1.8 million in severance pay, a $60,000 signing bonus and unspecified punitive damages.

The Grady board appointed Stephenson interim CEO directly after firing Story in January. In a dismissal letter to Story, obtained by the Atlanta Journal-Constitution through the state Open Records Act, Stephenson said Story repeatedly acted without informing and obtaining approvals from the Grady board. The letter charges he did not provide the leadership to steer the cash-strapped hospital onto its feet.

Story has said through an attorney that he did nothing wrong at the hospital and should not have been fired.

Story also contends in the lawsuit that the Grady board failed to follow the proper termination procedures and asserts that the board, called the Fulton DeKalb Hospital Authority, breached his contract.

Story declined to comment Monday. Stephenson could not immediately be reached for comment.

Some officials have criticized Stephenson for consolidating too much power over Grady, because she also serves as vice chairwoman of the new Grady nonprofit board. The nonprofit is expected to assume control of the hospital this month and is searching for a permanent CEO.

The lawsuit asserts that Stephenson met with Story over dinner Jan. 28, the day he was fired, and provided him with a letter containing the reasons for his termination. She told Story he must sign a pledge of confidentiality to receive the letter, but he refused, the lawsuit said.

Story has been negotiating with the board for a few months, seeking a settlement in lieu of a lawsuit, but those talks broke down without an agreement.

"The authority's breach of contract has damaged Story's economic worth, employability, and professional reputation," the lawsuit claims.

Story continues to look for a job.

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