Oxford Finance, LLC v. Skyline Manor, Inc.

Filing 20

ORDER - Counsel for Oxford shall, as soon as reasonably possible, provide notice to counsel for the Nebraska Department of Health and Human Services of Oxford's pending motions requesting injunctive relief and the appointment of a receiver, a nd the hearing on those motions presently scheduled for November 21, 2013, at 10:30 AM. Oxford shall provide the Department's counsel with copies of the following documents that relate to the hearing: Oxford's complaint; the Motion to Appoint Receiver and brief in support; the Motion for Temporary Restraining Order and brief in support; the Affidavit of Darren Margulis; and a copy of the Court's text order of November 19, 2013, setting the pending hearing. Filings 1 , 3 , 4 , 6 , 14 , 16 , and 17 . Ordered by Judge John M. Gerrard. (Copies mailed) (MKR) Modified on 11/20/2013 to reflect copies mailed(MKR).

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEBRASKA
OXFORD FINANCE, LLC,
Plaintiff,

8:13-CV-336

vs.
ORDER
SKYLINE MANOR, INC.,
Defendant.
This matter is before the Court on its own motion. Pending before the
Court are plaintiff Oxford Finance's motions for a temporary restraining
order and for the emergency appointment of a receiver. Filings 3 and 16.
Briefly stated, Oxford alleges that defendant Skyline Manor is in breach of
various loan contracts with Oxford. See filing 1. Skyline owns and operates a
199-unit continuing care retirement community and a 140-unit independent
living facility in Omaha (the "Facilities"). Filing 1 at ¶ 7. Oxford seeks
injunctive relief and the appointment of a receiver to safeguard its interests
in Skyline's assets, including the Facilities, which Oxford alleges are pledged
as security for its loans to Skyline.
Oxford has also alleged that the Nebraska Department of Health and
Human Services ("DHHS") has recently conducted two surveys of the
Facilities that revealed "serious standard of care violations." Filing 1 at ¶¶ 2,
49–50; see also filing 1-7. As a result of these failed surveys, Oxford alleges
that DHHS is planning to revoke Skyline's operating licenses for the
Facilities on December 6, 2013. Filing 1 at ¶¶ 2, 49. But, according to Oxford,
DHHS may be willing to delay the revocation if a new manager is appointed
to run the Facilities and there is a satisfactory third survey. Filing 1 at ¶ 50.
So, in addition to safeguarding its interest in Skyline's assets, Oxford
proposes that the appointment of a receiver is necessary to ensure adequate
and continuing care for the Facilities' residents. Oxford has proposed that
Welcov Healthcare, LLC, be appointed both the new manager of the Facilities
and as the receiver in this case. Filing 3. And Oxford alleges that DHHS
supports the appointment of Welcov to manage the Facilities. Filing 1 at ¶ 3.
A hearing is presently scheduled on both of Oxford's motions for
Thursday, November 21, 2013, at 10:30 AM in Courtroom 1 of the Robert V.
Denney Federal Building, 100 Centennial Mall North, Lincoln, Nebraska. See
filing 17. The Court notes that the interests of numerous residents of the

Facilities, and potentially their health and safety, may be affected by any
orders entered in these proceedings. DHHS may be in a position to offer
information or guidance that will help ensure that the interests of the
Facilities' residents are properly taken into account. Such information may
also aid in evaluating the need, if any, for a receiver and provide the Court
with practical insights into the scope and nature of any potential receiver's
duties and obligations. The Court therefore finds that DHHS should be
notified of Oxford's motions and the pending hearing. Accordingly,
IT IS ORDERED:
1.

Counsel for Oxford shall, as soon as reasonably possible,
provide notice to counsel for the Nebraska Department of
Health and Human Services of Oxford's pending motions
requesting injunctive relief and the appointment of a
receiver, and the hearing on those motions presently
scheduled for November 21, 2013, at 10:30 AM.

2.

Oxford shall provide the Department's counsel with copies
of the following documents that relate to the hearing:
Oxford's complaint; the Motion to Appoint Receiver and
brief in support; the Motion for Temporary Restraining
Order and brief in support; the Affidavit of Darren
Margulis; and a copy of the Court's text order of November
19, 2013, setting the pending hearing. Filings 1, 3, 4, 6, 14,
16, and 17.

Dated this 20th day of November, 2013.
BY THE COURT:

John M. Gerrard
United States District Judge

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