In re Hebrew Hospital Senior Housing, Inc.

Bragar Eagel & Squire, P.C., was initially retained by the Official Committee of Unsecured Creditors of Hebrew Hospital Senior Housing, Inc., a Westchester-based "Continuing Care Retirement Committee" ("CCRC"), which had filed for bankruptcy in December 2015 after suffering millions of dollars of losses in every year of its existence but one.  We subsequently represented Sean S. Southard, the Plan Administrator of the Amended Chapter 11 Plan of Liquidation for Hebrew Hospital Senior Housing, Inc.  CCRC's are a form of senior housing in which residents pay a significant entrance fee and monthly fees for the right to live in a unit at the facility and obtain services and health care.  Pursuant to the residency agreements, residents were entitled to a refund of some or all of the entrance fee paid when they left the facility.  We prosecuted claims against former directors and officers of HHSH asserting that they breached their duties to HHSH and its residents by failing to reasonable steps to develop a business model that would preserve the resident's expectation of refunds.  In addition, we obtained Assignments of Claim from numerous current and former residents, assigning to the Plan Administrator any claims that they had against HHSH's former directors and officers.  We prosecuted such claims, asserting that defendants made false and misleading statements to incoming residents, hiding HHSH's desperate financial condition, and subsequently failed to provide accurate information to the residents concerning HHSH's finances. After two years of hard-fought litigation, we obtained an $8 million settlement on behalf of the estate.

For more information, please contact Larry Eagel or David Stone.