Judge shuts down Newcomerstown Emergency Rescue Squad, appoints receiver

NEW PHILADELPHIA − A judge has granted the request of Ohio Attorney General Dave Yost to shut down the Newcomerstown Emergency Rescue Squad Inc. and appoint a receiver to protect its assets.

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The decision filed Wednesday by Tuscarawas County Common Pleas Court Judge Elizabeth Lehigh Thomakos says the organization must stop providing fire protection, ambulance and emergency response services within 14 days of her order, and sooner if practicable.

(This story has been updated to fix an error. See correction below. 9:45 a.m. 5/23/23.)

The order prohibits anyone connected with the nonprofit from selling or transferring any of its property that was bought with charitable funds. It also prohibits moving funds from any of the organization's bank accounts.

Thomakos ordered Huntington National Bank to suspend all activity in the squad's bank accounts until the receiver, Columbus attorney Ken Goldberg, can take control.

Newcomerstown Emergency Rescue Squad has provided fire and emergency medical response in Newcomerstown and nearby townships. The village started its own fire department Monday in response to concerns about NERS staffing and governance.

A text message sent Friday to NERS' most visible representative, Heather Stein-Wells, did not receive a reply. A call placed to her phone was not answered; a message said the voice mailbox was full.

Newcomerstown Mayor Patrick Cadle has said NERS had only two firefighters responding to fires, and had an unqualified person on an ambulance.

Yost alleged in the lawsuit that NERS operated without the three-member governing board required under state law regarding nonprofits.

Judge Thomakos' order says that NERS owns the David Barber Civic Center at 1066 East State St. in Newcomerstown; occupies the village-owned fire station at 200 S. College St. in Newcomerstown; and owns multiple vehicles, including an ambulance and firetruck.

Her order found that for purposes of issuing the preliminary injunction that there is good cause to believe:

• NERS failed in its duty to comply with the law.

• The charitable trust of NERS has been abused.

• NERS violated terms of a Sept. 21, 2020, agreement made with the attorney general's office to follow nonprofit rules and limit Stein-Wells' access to funds.

• NERS failed to file its annual report with the attorney general's office for 2021.

• That "immediate and irreparable damage" could occur to the court's ability to grant effective final relief unless NERS were immediately restrained and enjoined.

• The temporary restraining order is in the public interest, and that no private interest of NERS outweighs the public interest.

Thomakos' order authorizes the receiver to make decisions about pending litigation involving NERS.

Yost's lawsuit asks that his office be permitted to give the squad's assets to a similar organization.

Thomakos' order gives the receiver authority to fire any NERS employees, managers, agents or others as he sees necessary. It also orders such persons to cooperate with the receiver in the discharge of his duties. Creditors have 45 days to file with the receiver any claim against NERS' assets.

The receiver is to be paid $150 an hour, and counsel for the receiver will receive $285 per hour. Goldberg, the receiver, is authorized to employ people to assist in managing NERS' assets and business affairs. He is required to report his activities to Thomakos.

CORRECTION: Judge Thomakos issued the order Wednesday. The day was wrong when this story first published.

Reach Nancy at 330-364-8402 or nancy.molnar@timesreporter.com.

On Twitter: @nmolnarTR

This article originally appeared on The Times-Reporter: Judge shuts down Newcomerstown Emergency Rescue Squad, appoints receiver