Free Reply Brief - District Court of Delaware - Delaware

Case 1 :04-cv-00910-GIVIS Document 68 Filed 05/06/2005 Page 1 of 2
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE

O}? CLIZFF MANOR, INC. g Q., ) Civil Action No. 0¢l~—9l0
Plaintiffs, i
)
v. )
)
TI-ICI COMPANY LLC, )
Defendant i

PLAIN'I`IFFS’ REPLY ON ITS MOTION
FOR LEAVE TO MAKE A DEPOSIT IN COURT
Piaintiffs herewith reply to the Objection of defendant (also referred to as "Tl—ICI") to
plaintiff s Motion for Leave to Make a Deposit into Court (the "Motion”), and respectfully assert
as follows:
1. Defendant has objected to the Motion because (Objection, p,2) "TI~lCI is well able
to pay a money judgment". As evidence thereof, the Objection points to the accompanying
Declaration of one Kevin Kurtzman, who asserts (par, 2) that "TI-ICI owns, directly or indirectly,
twenty—three nursing homes in ll states". However, the Kurzman Declaration ignores the fact
that THCI was at the time the Kurzman Declaration was made creating nine separate limited
liability entities to which it intends to assign ownership ofthe nine properties here in issue. This
is a blatant attempt by defendant to insulate its other properties from the liabilities plaintiff has
_ asserted defendant cannot meet, and totally discredits defendant’s "evidence" of its supposed
solvency.
2. Annexed hereto as Exhibit "A” is documentation of the creation and qualification
of limited liability companies, in March 2005, each of which has a name which begins with the
street address of one of the nine properties in question, and concludes with the addition of the

Case 1:04-cv—00910-Gl\/IS Document 68 Filed 05/06/2005 Page 2 of 2
words "Operating Company, LLC", For example, the tirst pages of Exhibit "A" demonstrate the
qualification in Missouri of a Delaware limited liability company created on March 22, 2005,
named "4700 NW Cliff View Drive Operating Company, LLC”. 4700 Cliff View Drive is the
address, in Kansas City, MO, of the first-named plaintiff in this action. The other pages of
Exhibit “A" deals with other entities recently created, with the respective street addresses of
several ofthe other properties in question,
3. Plaintiffs are aware oft at least one property for which the new entity has obtained
from the State regulatory authorities the forms necessary for an application for change in
ownership ofthe nursing home property,
4, So much for det`endant’s spurious evidence of its "solvency”. The Motion should
tliereforle bein all respects granted
Dated: May 6, 2005 DUANE MORRIS LLP
Wilmington, Delaware
. [ Y
ichael R. Lastows ` LD. 3892)
Richard W. Riley (DE LD. 4052)
Christopher M. Winter (DE LD. 4163)
1100 North Market Street, Suite 1200
Wilmington, DE 19801-1246
Telephone: (302) 657-4900
Facsimile: (302) 657-4901
-and~
TROUTMAN SANDERS LLP
Amos Alter, Esquire
The Chrysler Building
405 Lexington Avenue
New York, NY 10174
Telephone: (2X2) 704-6000
Facsimile: (212) 704-6288.
Attorrzeysfor Plairztwfntegitated Health Services of
Clw’Mmz0r, Inc. et al.
Wi.M\20B264 l