EX-5.1 5 ex5-1.htm EXHIBIT 5.1 ex5-1.htm

Exhibit 5.1

October 12, 2010


Omega Healthcare Investors, Inc.
200 International Circle
Suite 3500
Hunt Valley, Maryland 21030

Re: Registration Statement on Form S-4 filed by Omega Healthcare Investors, Inc.
 
Ladies and Gentlemen:
 
We have served as special counsel to Omega Healthcare Investors, Inc., a Maryland corporation (the “Parent”), in connection with the Registration Statement on Form S-4 (the “Registration Statement”) to be filed by the Parent and by the subsidiary guarantors listed on Schedule I hereto (the “Guarantors”) with the Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Act”), relating to the offer by the Parent (the “Exchange Offer”) to exchange up to $200,000,000 in aggregate principal amount of the Parent’s registered 7½% Senior Notes due 2020 (the “Exchange Notes”) for an equal aggregate principal amount of its existing 7½% Senior Notes due 2020 issued and outstanding in the aggregate principal amount of $200,000,000 (the “Initial Notes”), under the indenture dated as of February 9, 2010 (the “Original Indenture”), among the Parent, the Guarantors signatory thereto and U.S. Bank National Association, as trustee (the “Trustee”), as supplemented by that certain First Supplemental Indenture dated as of June 23, 2010, and by that certain Second Supplemental Indenture dated as of September 2, 2010, each among the Parent, the Guarantors signatory thereto and the Trustee (the Original Indenture, as so supplemented, being herein referred to as the “Indenture”).  All capitalized terms which are defined in the Indenture shall have the same meanings when used herein, unless otherwise specified.
 
In connection herewith, we have examined:
 
(1)  
the Registration Statement (including all exhibits thereto);
 
(2)  
an executed copy of the Indenture, including the guarantees of the Initial Notes and the Exchange Notes (each, a “Guarantee”, and collectively, the “Guarantees”) provided for therein;
 
(3)  
executed copies of the Initial Notes;
 
(4)  
the form of the Exchange Notes;
 
 
 

 
 
Omega Healthcare Investors, Inc.
October 12, 2010
Page 2
 
 
 
 
(5)  
the charter, certificate or articles of incorporation, formation or trust and bylaws, limited liability company agreement, limited partnership agreement or other organizational documents of the Parent and each of the Guarantors incorporated, formed or organized under the laws of the States of Arizona, Delaware, Illinois, Kansas, Maryland, North Carolina and Texas (such Guarantors, as so identified on Schedule I hereto, being sometimes collectively referred to herein as the “Identified Guarantors”), as in effect on the date hereof and as certified by the applicable Secretary, Assistant Secretary or other appropriate representative of the Parent or the Identified Guarantors (the “Organizational Documents”);
 
(6)  
a certificate of legal existence and good standing for the Parent and each of the Identified Guarantors as of a recent date; and
 
(7)  
certificates of the respective Secretaries, Assistant Secretaries or other appropriate representatives of the Parent and each of the Identified Guarantors, certifying as to resolutions relating to the transactions referred to herein and the incumbency of officers.
 
The documents referenced as items (1) through (4) above are collectively referred to as the “Transaction Documents”.  The documents referenced as items (1) through (7) above are collectively referred to as the “Reviewed Documents”.
 
We have also examined originals or copies, certified or otherwise identified to our satisfaction, of such other corporate, limited liability company, limited partnership or trust records, agreements and instruments of the Parent and of the Identified Guarantors, certificates of public officials and officers or other appropriate representatives of the Parent and the Identified Guarantors, and such other documents, records and instruments, and we have made such legal and factual inquiries, as we have deemed necessary or appropriate as a basis for us to render the opinions hereinafter expressed.  In our examination of the Reviewed Documents and the foregoing, we have assumed the genuineness of all signatures, the legal competence and capacity of natural persons, the authenticity of documents submitted to us as originals and the conformity with authentic original documents of all documents submitted to us as copies.  When relevant facts were not independently established, we have relied without independent investigation as to matters of fact upon statements of governmental officials and upon representations made in or pursuant to certificates and statements of appropriate representatives of the Parent and the Identified Guarantors.
 
In connection herewith, we have assumed that, other than with respect to the Parent and the Guarantors, all of the documents referred to in this opinion have been duly authorized by, have been duly executed and delivered by, and constitute the valid, binding and enforceable obligations of, all of the parties thereto, all of the signatories to such documents have been duly authorized by all such parties and all such parties are duly organized and validly existing and have the power and authority (corporate or other) to execute, deliver and perform such documents.
 
 
 

 
 
Omega Healthcare Investors, Inc.
October 12, 2010
Page 3
 
 
 
 
We have further  assumed, with your permission, that (i) each of the Guarantors other than the Identified Guarantors (each, an “Other Guarantor,” and collectively, the “Other Guarantors”) has been duly organized and is validly existing in good standing under the laws of its state of organization, (ii) the execution and delivery by each such Other Guarantor of the Transaction Documents to which it is a party and the performance by it of its obligations thereunder are within its organizational power and have been duly authorized by all necessary action (corporate or other) on its part, (iii) each of the Transaction Documents to which any Other Guarantor is a party has been duly executed and delivered by each such Other Guarantor and (iv) the execution and delivery by each Other Guarantor of the Transaction Documents to which it is a party and the performance by it of its obligations thereunder do not result in any violation by it of the provisions of its organizational documents.  We understand that you are receiving opinion letters, dated the date hereof, from the various law firms indicated on Schedule II hereto (the “Local Counsel Opinions”), as to the validity and binding nature of the Guarantees against the Other Guarantors under the laws of the Other Guarantors’ respective states of organization, and that such opinion letters are being filed as exhibits to the Registration Statement as indicated on Schedule II hereto.  With your permission we have assumed the correctness of the conclusions set forth in the Local Counsel Opinions and express no opinion herein with regard thereto.
 
Based upon the foregoing and in reliance thereon, and subject to the assumptions, comments, qualifications, limitations and exceptions set forth herein, we are of the opinion that, when the Registration Statement has become effective under the Act,  the Indenture has become duly qualified under the Trust Indenture Act of 1939, as amended, and the Exchange Notes (in the form examined by us) have been duly executed by the Parent and authenticated and delivered by the Trustee and issued in exchange for the Initial Notes in accordance with the provisions of the Indenture upon consummation of the Exchange Offer, and otherwise in accordance with the terms of the Registration Statement and the exhibits thereto:
 
 
(1)
the Exchange Notes will constitute valid and binding obligations of the Parent; and
 
 
(2)
each Guarantee provided for in the Indenture will constitute a valid and binding obligation of the Guarantor that is a party thereto.
 
In addition to the assumptions, comments, qualifications, limitations and exceptions set forth above, the opinion set forth herein is further limited by, subject to and based upon the following assumptions, comments, qualifications, limitations and exceptions:
 
(a)   Our opinion set forth herein reflects only the application of applicable Arizona, Illinois, Kansas, Maryland, New York, North Carolina and Texas State law (excluding the securities and blue sky laws of such states, as to which we express no opinion), the federal laws of the United States of America, and to the extent required by the foregoing opinions, the General Corporation Law of the State of Delaware, the Delaware Limited Liability Company Act and the Delaware Statutory Trust Act, including the statutory provisions and all applicable provisions of the Delaware Constitution and reported judicial decisions interpreting such laws (the jurisdictions referred to in this sentence being sometimes collectively referred to herein as the “Opinion Jurisdictions”).  The opinion set forth herein is made as of the date hereof and is subject to, and may be limited by, future changes in the factual matters set forth herein, and we undertake no duty to advise you of the same.  The opinion expressed herein is based upon the law in effect (and published or otherwise generally available) on the date hereof, and we assume no obligation to revise or supplement this opinion should such law be changed by legislative action, judicial decision or otherwise.  In rendering our opinion, we have not considered, and hereby disclaim any opinion as to, the application or impact of any laws, cases, decisions, rules or regulations of any other jurisdiction, court or administrative agency.
 
 
 

 
 
Omega Healthcare Investors, Inc.
October 12, 2010
Page 4
 
 
 
 
(b)  Our opinion contained herein may be limited by (i) applicable bankruptcy, insolvency, reorganization, receivership, moratorium or similar laws affecting or relating to the rights and remedies of creditors generally including, without limitation, laws relating to fraudulent transfers or conveyances, preferences and equitable subordination, (ii) general principles of equity (regardless of whether considered in a proceeding in equity or at law) and (iii) an implied covenant of good faith and fair dealing.

(c)  Our opinion is further subject to the effect of generally applicable rules of law arising from statutes, judicial and administrative decisions, and the rules and regulations of governmental authorities that: (i) limit or affect the enforcement of provisions of a contract that purport to require waiver of the obligations of good faith, fair dealing, diligence and reasonableness; (ii) limit the availability of a remedy under certain circumstances where another remedy has been elected; (iii) limit the enforceability of provisions releasing, exculpating, or exempting a party from, or requiring indemnification of a party for, liability for its own action or inaction, to the extent the action or inaction involves negligence, recklessness, willful misconduct or unlawful conduct; (iv) may, where less than all of the contract may be unenforceable, limit the enforceability of the balance of the contract to circumstances in which the unenforceable portion is not an essential part of the agreed exchange; and (v) govern and afford judicial discretion regarding the determination of damages and entitlement to attorneys’ fees.

(d)  We express no opinion as to:
 
   (i)         the enforceability of (A) any provision of the Indenture, the Exchange Notes or Guarantees (collectively, the “Operative Documents”) purporting or attempting to (1) confer exclusive jurisdiction and/or venue upon certain courts or otherwise waive the defenses of forum non conveniens or improper venue, (2) confer subject matter jurisdiction on a court not having independent grounds therefor, (3) modify or waive the requirements for effective service of process for any action that may be brought, (4) waive the right of the Parent, any Guarantor or any other person to a trial by jury, (5) provide that remedies are cumulative or that decisions by a party are conclusive, (6) modify or waive the rights to notice, legal defenses, statutes of limitations or other benefits that cannot be waived under applicable law or (7) provide for or grant a power of attorney, or (B) any provision of the Operative Documents relating to choice of law; or
 
   (ii)        the enforceability of (A) any rights to indemnification or contribution provided for in the Operative Documents which are violative of public policy underlying any law, rule or regulation (including any federal or state securities law, rule or regulation) or the legality of such rights, (B) any provisions in the Operative Documents purporting to provide to the Trustee or any other person the right to receive costs and expenses beyond those reasonably incurred by it, or (C) provisions in the Operative Documents whose terms are left open for later resolution by the parties.
 
 
 

 
 
Omega Healthcare Investors, Inc.
October 12, 2010
Page 5
 
 
 
 
(e)     Enforceability of the Guarantees is further subject to the qualification that certain waivers, procedures, remedies, and other provisions of the Guarantees may be unenforceable under or limited by the laws of the Opinion Jurisdictions; however, such laws do not in our opinion, substantially prevent the practical realization of the benefits intended by the Guarantees, except that the application of principles of guaranty and suretyship to the acts or omissions of the holder of the Guarantees after execution and delivery of such Guarantees may prevent the practical realization of the benefits intended by the Guarantees through a release or discharge of one or more Guarantors.

(f)  We express no opinion as to whether a subsidiary may guarantee or otherwise be liable for indebtedness incurred by its parent except to the extent that such subsidiary may be determined to have benefited from the incurrence of the indebtedness by its parent or whether such benefit may be measured other than by the extent to which the proceeds of the indebtedness incurred by its parent are, directly or indirectly, made available to such subsidiary for its corporate or other analogous purposes.

We do not render any opinions except as expressly set forth above.  We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to the use of our name therein and in the related prospectus under the captions “Legal Matters.”  We also consent to your filing copies of this opinion as an Exhibit to the Registration Statement with agencies of such states as you deem necessary in the course of complying with the laws of such states regarding the Exchange Offer.  In giving such consent, we do not thereby concede that we are within the category of persons whose consent is required under Section 7 of the Act or the Rules and Regulations of the Commission thereunder.
 
Very truly yours,
 
/s/ Bryan Cave LLP
 
 
 

 
 
Omega Healthcare Investors, Inc.
October 12, 2010
Page 6
 
 
 
 
Schedule I

Guarantors



Subsidiary
State or other jurisdiction of formation
Arizona Lessor - Infinia, Inc.
Maryland
Baldwin Health Center, Inc.
Pennsylvania
Bayside Alabama Healthcare Second, Inc.
Alabama
Bayside Arizona Healthcare Associates, Inc.
Arizona
Bayside Arizona Healthcare Second, Inc.
Arizona
Bayside Colorado Healthcare Associates, Inc.
Colorado
Bayside Colorado Healthcare Second, Inc.
Colorado
Bayside Indiana Healthcare Associates, Inc.
Indiana
Bayside Street II, Inc.
Delaware
Bayside Street, Inc.
Maryland
Canton Health Care Land, Inc.
Ohio
Carnegie Gardens LLC
Delaware
Center Healthcare Associates, Inc.
Texas
Cherry Street – Skilled Nursing, Inc.
Texas
Colonial Gardens, LLC
Ohio
Colorado Lessor - Conifer, Inc.
Maryland
Copley Health Center, Inc.
Ohio
CSE Albany LLC
Delaware
CSE Amarillo LLC
Delaware
CSE Anchorage LLC
Delaware
CSE Arden L.P.
Delaware
CSE Augusta LLC
Delaware
CSE Bedford LLC
Delaware
CSE Blountville LLC
Delaware
CSE Bolivar LLC
Delaware
CSE Cambridge LLC
Delaware
CSE Cambridge Realty LLC
Delaware
CSE Camden LLC
Delaware
CSE Canton LLC
Delaware
CSE Casablanca Holdings II LLC
Delaware
CSE Casablanca Holdings LLC
Delaware
CSE Cedar Rapids LLC
Delaware
CSE Centennial Village
Delaware
CSE Chelmsford LLC
Delaware
CSE Chesterton LLC
Delaware
CSE Claremont LLC
Delaware
CSE Corpus North LLC
Delaware
CSE Crane LLC
Delaware
CSE Denver Iliff LLC
Delaware
CSE Denver LLC
Delaware
CSE Douglas LLC
Delaware
CSE Dumas LLC
Delaware
CSE Elkton LLC
Delaware
CSE Elkton Realty LLC
Delaware
 
 
 

 
 
Omega Healthcare Investors, Inc.
October 12, 2010
Page 7
 
 
 
 
Subsidiary
State or other jurisdiction of formation
CSE Fairhaven LLC
Delaware
CSE Fort Wayne LLC
Delaware
CSE Frankston LLC
Delaware
CSE Georgetown LLC
Delaware
CSE Green Bay LLC
Delaware
CSE Hilliard LLC
Delaware
CSE Huntingdon LLC
Delaware
CSE Huntsville LLC
Delaware
CSE Indianapolis-Continental LLC
Delaware
CSE Indianapolis-Greenbriar LLC
Delaware
CSE Jacinto City LLC
Delaware
CSE Jefferson City LLC
Delaware
CSE Jeffersonville-Hillcrest Center LLC
Delaware
CSE Jeffersonville-Jennings House LLC
Delaware
CSE Kerrville LLC
Delaware
CSE King L.P.
Delaware
CSE Kingsport LLC
Delaware
CSE Knightdale L.P.
Delaware
CSE Lake City LLC
Delaware
CSE Lake Worth LLC
Delaware
CSE Lakewood LLC
Delaware
CSE Las Vegas LLC
Delaware
CSE Lawrenceburg LLC
Delaware
CSE Lenoir L.P.
Delaware
CSE Lexington Park LLC
Delaware
CSE Lexington Park Realty LLC
Delaware
CSE Ligonier LLC
Delaware
CSE Live Oak LLC
Delaware
CSE Logansport LLC
Delaware
CSE Lowell LLC
Delaware
CSE Marianna Holdings LLC
Delaware
CSE Memphis LLC
Delaware
CSE Mobile LLC
Delaware
CSE Moore LLC
Delaware
CSE North Carolina Holdings I LLC
Delaware
CSE North Carolina Holdings II LLC
Delaware
CSE Omro LLC
Delaware
CSE Orange Park LLC
Delaware
CSE Orlando-Pinar Terrace Manor LLC
Delaware
CSE Orlando-Terra Vista Rehab LLC
Delaware
CSE Pennsylvania Holdings
Delaware
CSE Piggott LLC
Delaware
CSE Pilot Point LLC
Delaware
CSE Ponca City LLC
Delaware
CSE Port St. Lucie LLC
Delaware
CSE Richmond LLC
Delaware
 
 
 

 
 
Omega Healthcare Investors, Inc.
October 12, 2010
Page 8
 
 
 
 
Subsidiary
State or other jurisdiction of formation
CSE Ripley LLC
Delaware
CSE Ripon LLC
Delaware
CSE Safford LLC
Delaware
CSE Salina LLC
Delaware
CSE Seminole LLC
Delaware
CSE Shawnee LLC
Delaware
CSE Spring Branch LLC
Delaware
CSE Stillwater LLC
Delaware
CSE Taylorsville LLC
Delaware
CSE Texarkana LLC
Delaware
CSE Texas City LLC
Delaware
CSE The Village LLC
Delaware
CSE Upland LLC
Delaware
CSE Walnut Cove L.P.
Delaware
CSE West Point LLC
Delaware
CSE Whitehouse LLC
Delaware
CSE Williamsport LLC
Delaware
CSE Winter Haven LLC
Delaware
CSE Woodfin L.P.
Delaware
CSE Yorktown LLC
Delaware
Dallas – Skilled Nursing, Inc.
Texas
Delta Investors I, LLC
Maryland
Delta Investors II, LLC
Maryland
Desert Lane LLC
Delaware
Dixon Health Care Center, Inc.
Ohio
Florida Lessor – Crystal Springs, Inc.
Maryland
Florida Lessor – Emerald, Inc.
Maryland
Florida Lessor – Lakeland, Inc.
Maryland
Florida Lessor – Meadowview, Inc.
Maryland
Florida Real Estate Company, LLC
Florida
Georgia Lessor - Bonterra/Parkview, Inc.
Maryland
Greenbough, LLC
Delaware
Hanover House, Inc.
Ohio
Heritage Texarkana Healthcare Associates, Inc.
Texas
House of Hanover, Ltd
Ohio
Hutton I Land, Inc.
Ohio
Hutton II Land, Inc.
Ohio
Hutton III Land, Inc.
Ohio
Indiana Lessor – Jeffersonville, Inc.
Maryland
Indiana Lessor – Wellington Manor, Inc.
Maryland
Jefferson Clark, Inc.
Maryland
LAD I Real Estate Company, LLC
Delaware
Lake Park – Skilled Nursing, Inc.
Texas
Leatherman 90-1, Inc.
Ohio
Leatherman Partnership 89-1, Inc.
Ohio
Leatherman Partnership 89-2, Inc.
Ohio
 
 
 

 
 
Omega Healthcare Investors, Inc.
October 12, 2010
Page 9
 
 
 
 
Subsidiary
State or other jurisdiction of formation
Long Term Care – Michigan, Inc.
Michigan
Long Term Care – North Carolina, Inc.
North Carolina
Long Term Care Associates – Illinois, Inc.
Illinois
Long Term Care Associates – Indiana, Inc.
Indiana
Long Term Care Associates – Texas, Inc.
Texas
Meridian Arms Land, Inc.
Ohio
North Las Vegas LLC
Delaware
NRS Ventures, L.L.C.
Delaware
OHI (Connecticut), Inc.
Connecticut
OHI (Florida), Inc.
Florida
OHI (Illinois), Inc.
Illinois
OHI (Indiana), Inc.
Indiana
OHI (Iowa), Inc.
Iowa
OHI (Kansas), Inc.
Kansas
OHI Asset (CA), LLC
Delaware
OHI Asset (CO), LLC
Delaware
OHI Asset (CT) Lender, LLC
Delaware
OHI Asset (FL), LLC
Delaware
OHI Asset (ID), LLC
Delaware
OHI Asset (IL), LLC
Delaware
OHI Asset (IN), LLC
Delaware
OHI Asset (LA), LLC
Delaware
OHI Asset (MI), LLC   Delaware 
OHI Asset (MI/NC), LLC
Delaware
OHI Asset (MO), LLC
Delaware
OHI Asset (OH) Lender, LLC
Delaware
OHI Asset (OH) New Philadelphia, LLC
Delaware
OHI Asset (OH), LLC
Delaware
OHI Asset (PA) Trust
Maryland
OHI Asset (PA), LLC
Delaware
OHI Asset (SMS) Lender, Inc.
Maryland
OHI Asset (TX), LLC
Delaware
OHI Asset CSB LLC
Delaware
OHI Asset CSE – E, LLC
Delaware
OHI Asset CSE – U, LLC
Delaware
OHI Asset Essex (OH), LLC
Delaware
OHI Asset II (CA), LLC
Delaware
OHI Asset II (FL), LLC
Delaware
OHI Asset II (PA) Trust
Maryland
OHI Asset III (PA) Trust
Maryland
OHI Asset IV (PA) Silver Lake Trust
Maryland
OHI Asset, LLC
Delaware
OHI of Texas, Inc.
Maryland
OHI Sunshine, Inc.
Florida
OHI Tennessee, Inc.
Maryland
OHIMA, Inc.
Massachusetts
Omega (Kansas), Inc.
Kansas
 
 
 

 
 
Omega Healthcare Investors, Inc.
October 12, 2010
Page 10
 
 
 
 
Subsidiary
State or other jurisdiction of formation
Omega TRS I, Inc.
Maryland
Orange Village Care Center, Inc.
Ohio
OS Leasing Company
Kentucky
Panama City Nursing Center LLC
Delaware
Parkview – Skilled Nursing, Inc.
Texas
Pavillion North Partners, Inc.
Pennsylvania
Pavillion North, LLP
Pennsylvania
Pavillion Nursing Center North, Inc.
Pennsylvania
Pine Texarkana Healthcare Associates, Inc.
Texas
Reunion Texarkana Healthcare Associates, Inc.
Texas
San Augustine Healthcare Associates, Inc.
Texas
Skilled Nursing – Gaston, Inc.
Indiana
Skilled Nursing – Herrin, Inc.
Illinois
Skilled Nursing – Hicksville, Inc.
Ohio
Skilled Nursing – Paris, Inc.
Illinois
Skyler Maitland LLC
Delaware
South Athens Healthcare Associates, Inc.
Texas
St. Mary’s Properties, Inc.
Ohio
Sterling Acquisition Corp.
Kentucky
Sterling Acquisition Corp. II
Kentucky
Suwanee, LLC
Delaware
Texas Lessor – Stonegate GP, Inc.
Maryland
Texas Lessor – Stonegate, Limited, Inc.
Maryland
Texas Lessor – Stonegate, LP
Maryland
Texas Lessor – Treemont, Inc.
Maryland
The Suburban Pavilion, Inc.
Ohio
Washington Lessor – Silverdale, Inc.
Maryland
Waxahachie Healthcare Associates, Inc.
Texas
West Athens Healthcare Associates, Inc.
Texas
Wilcare, LLC
Ohio

 
 

 
 
Omega Healthcare Investors, Inc.
October 12, 2010
Page 11
 
 
 
 
Schedule II


Law Firm
State
Exhibit
Maynard, Cooper & Gale, P.C.
Alabama
Exhibit 5.2
Miles & Peters, P.C.
Colorado
Exhibit 5.3
Robinson & Cole LLP
Connecticut
Exhibit 5.4
Akerman Senterfitt LLP
Florida
Exhibit 5.5
Ice Miller LLP
Indiana
Exhibit 5.6
Baudino Law Group, PLC
Iowa
Exhibit 5.7
Wyatt, Tarrant & Combs, LLP
Kentucky
Exhibit 5.8
Partridge, Snow & Hahn LLP
Massachusetts
Exhibit 5.9
Miller, Johnson, Snell & Cummiskey, P.L.C.
Michigan
Exhibit 5.10
Dinsmore & Shohl LLP
Ohio
Exhibit 5.11
Montgomery, McCracken, Walker & Rhoads, LLP
Pennsylvania
Exhibit 5.12