(Bankr. E.D. Ky. Aug. 18, 2014)
The bankruptcy court finds that the Cabinet did not commit fraud on the court when it contended it had overpaid the debtor hospital for Medicaid reimbursements. The debtor alleged the Cabinet had emails reflecting it understood it had actually underpaid the hospital at the time it was alleging the overpayment in court. The court held that this did not constitute fraud on the court such that a five-year old judgment should be overturned. Nevertheless, the bankruptcy court recommends that the district court enter judgment in favor of the debtor hospital for the now undisputed amount of the underpayment from the cabinet. Opinion below.