Capital Finance, LLC et al v. 22 Maple Street, LLC et al

Filing 35

Judge Rya W. Zobel: ORDER entered. MEMORANDUM OF DECISION on Emergency Motion for Appointment of Receiver. (Alves-Baptista, Antonia)

UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS

CIVIL ACTION NO 18-10172-RWZ

CAPITAL FINANCE, LLC. etal.
V.

22 MAPLE STREET, LLC, etal.

MEMORANDUM OF DECISION

March 9, 2018

ZOBEL, S.D.J.

Plaintiff-lenders Capital Finance, LLC and Capital Funding, LLC move for
appointment of a receiver of "owner" defendant-borrowers 22 Maple Street, LLC; 25
Oriol Drive, LLC; 59 Coolidge Road, LLC; and 20 Kinmonth Road, LLC (the "Owner
Defendants") and "operator" defendant-borrowers Waban Health Center, LLC;
Merrimack Valley Health Center, LLC; Watertown Health Center, LLC; and Worcester

Health Center, LLC (the "Operator Defendants"). Defendants own and operate skilled
nursing facilities at their Massachusetts properties. Though all defendants are distinct
corporate entities, each is controlled and managed by non-party Synergy Health

Centers, LLC ("Synergy"). See Docket # 1-2 at 88, 89.

On January 16, 2018, plaintiffs filed a complaint in the Business Litigation
Session of the Suffolk Superior Court alleging defendants had breached their loan

agreements and seeking appointment of a receiver of the properties and nursing home

operations. Defendants subsequently removed the action to this court. After briefing