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Legal Proceedings
12 Months Ended
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
Legal Proceedings

13. LEGAL PROCEEDINGS

 

The Company and/or its affiliated subsidiaries are or were involved in the following litigation:

 

In March 2019, a civil complaint was filed in the Circuit Court of Lonoke County, Arkansas, 23rd Circuit, captioned Bailey v. Skyline, et.al. GL Nursing, LLC, the Company’s wholly owned subsidiary, was named as a co-defendant in the action arising out of a claimed personal injury suffered by the plaintiff while a resident of the skilled nursing home owned, but not operated, by GL Nursing. As of this date, no responsive pleadings have been filed and no further information is known regarding the merits of the claim.

 

After initial inquiry, it does not appear that the lease operator of the facility had in effect general liability insurance covering the GL Nursing, as landlord, as required by the operating lease.

 

As we simply were the owners of the property and not the operators, we believe that primary responsibility, if any, falls with the operator at the time. Under the terms of the lease, the operator has a duty to indemnify the Company, a claim which we intend to assert.

 

While it is too early to assess the Company’s exposure, we believe at this time that the likelihood of an adverse outcome is remote.

 

Southern Tulsa, LLC v. Healthcare Management of Oklahoma, LLC, District Court of Tulsa County, State of Oklahoma, Case No. CJ – 2016- 01781.

 

This matter was brought by us to have the appointment of a Receiver for the Southern Tulsa SNF and to recover damages from our former operator at that facility. The Court has ordered the appointment of a Receiver effective May 10, 2016. Other claims and matters are pending.

 

Thomas v. Edwards Redeemer Property Holdings, LLC, et.al., District Court for Oklahoma County, Oklahoma, Case No. CJ 2016-2160.

 

This action arises from a personal injury claim brought by heirs of a former resident of our Edwards Redeemer facility. We are entitled to indemnification from the lease operator and should be covered under the lease operator’s general liability policy. As we are not the operators of the facility and believe we have indemnity coverage, we believe we have no exposure. The lease operator’s insurance carrier is providing a defense and indemnity; and as a result we believe the likelihood of a material adverse result is remote.