Disabilities board files countersuit against VIP

BLOOMFIELD, Mo. -- The Cape Girardeau County Board for Developmental Disabilities has come up with an answer to a lawsuit filed by VIP Industries: a lawsuit of its own against VIP.

The countersuit was filed July 12 in Stoddard County.

It asks that the accounting records of VIP be released; that VIP relinquish property housing the sheltered workshop funded by the county and pay rent owed since the end of the two entities' last contract; that the board be awarded more than $1.5 million for money that VIP was reimbursed for ancillary items; and that the board be awarded the value of any financial gain VIP may have made from board-funded reimbursements associated with training, teaching, activities, and workshop or residential facilities.

The suit also requests the dismissal of VIP's breach-of-contract lawsuit filed in February.

The board's lawyer, J. Michael Ponder, said the board filed the suit on his advice.

The dispute began last year over a $60,000 kitchen renovation, which caused the board to want to renegotiate the contract, which VIP does not want to do.

The board stopped reimbursing the company for the costs of running the sheltered workshop. VIP employs between 150 and 200 developmentally disabled people and 150 to 200 staff people. VIP's suit claims the board owes it $200,000 for six months of insurance, maintenance and other costs related to operating the sheltered workshop and costs that have been incurred in the months since the suit was filed.

Ponder said the countersuit does not mean the board wants to stop using VIP to provide the sheltered workshop or for VIP to move off the property owned by the county but that VIP has profited unfairly over the years from its dealings with the board.

First, Ponder said, since the last contract between VIP and the board expired in June 2010, VIP has not had to pay any rent for the buildings housing the sheltered workshop but its services have run as normal.

Ponder said VIP has also profited because the board has reimbursed it many times over the years for ancillary items. He gave an example of a reimbursement for a $14,000 lawn mower he said was purchased by VIP. He said the amount of more than $1.5 million listed in the suit comes from an accounting of expenses VIP was reimbursed for but that the board was not required to pay.

The suit also claims VIP benefited from board-provided funding for training, teaching, activities and facilities that were not authorized by Missouri state law.

VIP chief executive Hillary Schmittzehe said Saturday he was unsure about the counterclaims and could not comment. VIP's lawyer, John Toma of St. Louis, did not return a call or email seeking comment.

Ponder said the board is hopeful the dispute can be settled peacefully. A call to board chairman Larry Tidd for comment was not returned.

eragan@semissourian.com

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