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Daxor Files Request to the U.S. Supreme Court.


NEW YORK--(BUSINESS WIRE)--Feb. 19, 1998--Daxor Corp. filed in the United States Supreme Court United States Supreme Court: see Supreme Court, United States.  a request that the court review a New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 Court of Appeals decision, which held that the company was not entitled to a hearing prior to a decision by the New York State Department of Health to terminate its licenses to operate a blood bank, semen bank and clinical laboratories in New York City New York City: see New York, city.
New York City

City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S.
.

Some of these operations were licensed in New York City for more than a quarter of a century. In 1994, New York City and New York State licensing for laboratories and blood banks was merged. The State Health Department refused to grant Daxor licenses based on alleged violations, which had nothing to do with the sperm bank sperm bank Reproduction medicine A registered tissue bank that collects, stores, tests, and sells frozen sperm to be used for artificial insemination. See Artificial insemination.  or the blood bank. The Department, furthermore, refused to grant Daxor a hearing on the alleged violations, claiming that these were new licenses and not a revocation of existing licenses. Revocation of existing licenses requires a due process hearing. In May 1996, the five judge Appellate Court A court having jurisdiction to review decisions of a trial-level or other lower court.

An unsuccessful party in a lawsuit must file an appeal with an appellate court in order to have the decision reviewed.
 unanimously ruled that Daxor had been denied due process, and ordered Daxor's licenses restored. In June 1997, the New York Court of Appeals reversed the Appellate Court decision and ruled that Daxor had no "right to a hearing based on a property interest derived from continuous operation under the City's licensing schedule and provisional state licenses."

Daxor's blood bank and semen bank have operated on a limited basis on a separate court order which protects the rights of the 3,000 blood and semen bank clients. In a separate action suit before New York Supreme Court For the highest appellate court in New York, see .
The Supreme Court of the State of New York is New York State's highest trial court, and is of general jurisdiction. There is a supreme court in each of New York State's 62 counties, although some of the smaller counties share
 Justice Stuart Cohen cohen
 or kohen

(Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male.
, a court-appointed expert, Dr. Stanley Leibo, had reported that Daxor's facilities were of the highest caliber. Blood bank clients have been able to receive their own blood. Yesterday, for example, a patient that stored blood in 1991 received two units of his own blood on an emergency basis. Daxor is the only blood bank in the Northeast offering members of the public the option to store their own frozen blood for periods up to ten years.

In the petition filed in the United States Supreme Court, Daxor's attorneys noted that the Federal Courts of Appeals' opinion conflicts with prior decisions by the United States Supreme Court and the Federal Court of Appeals which require, at a minimum, that the company be afforded a hearing at which adverse factual allegations may be contested. Daxor has filed a separate New York Court of Claims' suit charging the Department with discriminatory treatment.

At the present time, discussions are taking place between representatives of the Health Department and Daxor's attorneys for a possible settlement of these issues.

CONTACT: Daxor Corporation

Joseph Feldschuh, MD, President

Jane M. Kryzanowski, Investor Relations Investor relations

The process by which the corporation communicates with its investors.
 

212/244-0555
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Copyright 1998, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Feb 19, 1998
Words:459
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