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Shuttered St. Vincent's Hospital Facing $50 Million Lawsuit From State Labor Department

By DNAinfo Staff on November 10, 2010 6:24pm  | Updated on November 10, 2010 6:20pm

People walk by the entrance to St. Vincent's Hospital before it closed in April.
People walk by the entrance to St. Vincent's Hospital before it closed in April.
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Spencer Platt/Getty Images

By Gabriela Resto-Montero

DNAinfo Reporter/Producer

GREENWICH VILLAGE — A lawsuit against St. Vincent's Hospital claims administrators failed to give workers proper notice before laying them off when the hospital went bankrupt in April, Crain's reported.

The New York State Department of Labor is seeking $50 million in back pay and benefits for former workers of the shuttered Greenwich Hospital, the paper reported.

The department argued the Worker Adjustment and Retraining Notification Act required St. Vincent's to give its staff 90-days notice before the layoffs, but instead the hospital only gave workers seven days, Crain's reported.

Lawyers for the hospital argued that hospital administrators did not provide more warning because they didn't anticipate having to close, according to the paper.

Community advocates said the suit is a move in the right direction and will hold someone accountable.

"I think it's fantastic," said Yetta Kurland, an attorney and community activist.

"It's the first time we've seen the state step in and represent the people.