IN THE UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF OHIO EASTERN DIVISION

Transcription

1 IN THE UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF OHIO EASTERN DIVISION IN RE: ) CASE NO ) FORUM HEALTH, TRUMBULL ) CHAPTER 11 MEMORIAL HOSPITAL, et al., ) ) JUDGE KAY WOODS Debtors. ) ) MOTION FOR ORDER FOR THE EXAMINATION OF DEBTORS PURSUANT TO BANKRUPTCY RULE 2004 Now comes Hugh Bees, by and through his mother and next friend, Lorraine Bees, Lorraine Bees, and Jeff Bees (collectively, the Movants ), parties in interest and unsecured creditors in these proceedings, by and through their counsel, and pursuant to Bankruptcy Rule 2004, hereby move this Court to order the examination of Debtors 1 in accordance therewith, and to order that the Debtors produce the documents described in the attached Exhibit A prior to the requested examination. Bankruptcy Rule 2004(b) permits the Court to order the examination of the debtor in regards to the acts, conduct, or property or the liabilities and financial condition of the debtor, or any matter which may affect the administration of the debtor s estate or any matter which may affect the debtor s right to a discharge. Bankruptcy Rule 2004(c) permits the Court to order the 1 The Debtors include: Forum Health ( ), Forum Health Diagnostics Co. ( ), Forum Health Enterprises Co. ( ), Forum Health Outreach Laboratories, Inc. ( ), Forum Health Ventures Co. ( ), Forum Health Pharmacy Services Co. ( ), Forum Health Rehabilitative Services Co. ( ), Forum health Services Co. ( ), Western Reserve Care System ( ), Western Reserve health Foundation ( ), Dacas Nursing Support Systems, Inc. ( ), Dacas Nursing Systems, Inc. ( ), Beeghly Oaks ( ), PrideCare, Inc. ( ), Trumbull Memorial Hospital ( ), Trumbull Memorial Hospital Foundation ( ), Comprehensive Psychiatry Specialists, Inc. ( ) and Visiting Nurse Association and Hospice of Northeast Ohio ( ) kw Doc 1980 FILED 02/16/12 ENTERED 02/16/12 14:44:59 Page 1 of 4

2 examination of the debtor entity and the production of documents in connection with the foregoing examination or as otherwise set forth in Bankruptcy Rule The Rule 2004 Examination of the Debtors is requested for the reasons set forth below. Movants are plaintiffs in a medical malpractice/birth injury case currently pending in the Court of Common Pleas, Mahoning County, Ohio, styled Hugh Bees, etc., et al. v. Northside Meeical Center, et al., No. 10 CV 433 (the Malpractice Action ). On May 11, 2010, this Court entered an order, agreed to by the parties, granting relief from the automatic stay in order to permit Movants to prosecute and liquidate their claims in the Malpractice Action and to collect any liquidated claims from the proceeds of any applicable insurance. See Agreed Order Resolving Motion for Relief from Stay Filed by Hugh Bees, By and Through his Mother and Next Friend, Lorraine Bees, Lorraine Bees and Jeff Bees (Dkt. No. 775) ( Order Lifting Stay ). At the time the Order Lifting Stay was entered, Debtors represented that insurance was available to satisfy any liquidated claim that might arise from the Malpractice Action. Consistent with their rights under the Ohio Rules of Civil Procedure, Movants requested that Debtors produce documentation of all policies of insurance issued to Debtor for the relevant time period. Despite having been ordered by the state court to provide such information and discovery, Debtors have yet to receive complete documentation regarding available insurance or a clear picture of debtors relevant underwriting history. Such information is critical to determining whether Debtors have assets, in the form of insurance, from which a liquidated claim may be satisfied. Consequently, Movants wish to fix a date by which Debtors shall provide Movants with complete documentation regarding Debtors underwriting history from 1996 to the present, and of all contracts of insurance potentially applicable to claims arising from health care provided by debtor Forum Health, dba Northside Medical Center, from 1996 through kw Doc 1980 FILED 02/16/12 ENTERED 02/16/12 14:44:59 Page 2 of 4

3 the present, and to examine the person or persons most knowledgeable with respect to the documents and the relevant underwriting history. WHEREFORE, Movants respectfully request that this Court issue an Order, pursuant to Bankruptcy Rule 2004, which requires the Debtors (1) to produce the documents listed in Exhibit A to the undersigned counsel within ten (10) days of this Court entering said order, and (2) to produce for examination representatives of the Debtors who are familiar with the documents and with Debtors relevant underwriting history within thirty (30) days of this Court entering such an Order. Respectfully submitted: VORYS, SATER, SEYMOUR AND PEASE LLP /s/ Carrie M. Brosius John Winship Read ( ) Carrie M. Brosius ( ) Vorys, Sater, Seymour and Pease LLP 2100 One Cleveland Center 1375 East Ninth Street Cleveland, Ohio (216) Telephone (216) Facsimile jwread@vorys.com cmbrosius@vorys.com Attorneys for Hugh Bees, by and through his mother and next friend, Lorraine Bees, Lorraine Bees and Jeff Bees kw Doc 1980 FILED 02/16/12 ENTERED 02/16/12 14:44:59 Page 3 of 4

4 CERTIFICATE OF SERVICE The undersigned hereby certifies that the foregoing Motion for Order for the Examination of Debtors Pursuant to Bankruptcy Rule 2004was electronically transmitted on or about February 16, 2012 via the Court s CM/ECF system to all parties listed on the Court s Electronic Mail Notice list and by U.S. Mail to the following: Thomas J. Wilson Comstock, Springer & Wilson Co., LPA 100 Federal Plaza East, Suite 926 Youngstown, Ohio /s/carrie M. Brosius One of the attorneys for Hugh Bees, by and through his mother and next friend, Lorraine Bees, Lorraine Bees and Jeff Bees kw Doc 1980 FILED 02/16/12 ENTERED 02/16/12 14:44:59 Page 4 of 4

5 EXHIBIT A 1. The entire underwriting file relevant to care provided by Forum Health ( ), Forum Health Diagnostics Co. ( ), Forum Health Enterprises Co. ( ), Forum Health Outreach Laboratories, Inc. ( ), Forum Health Ventures Co. ( ), Forum Health Pharmacy Services Co. ( ), Forum Health Rehabilitative Services Co. ( ), Forum health Services Co. ( ), Western Reserve Care System ( ), Western Reserve health Foundation ( ), Dacas Nursing Support Systems, Inc. ( ), Dacas Nursing Systems, Inc. ( ), Beeghly Oaks ( ), PrideCare, Inc. ( ), Trumbull Memorial Hospital ( ), Trumbull Memorial Hospital Foundation ( ), Comprehensive Psychiatry Specialists, Inc. ( ) and Visiting Nurse Association and Hospice of Northeast Ohio ( ) (hereinafter, Debtors ) and/or their employees and/or agents at Northside Medical Center, from 1996 through the present; and 2. Any and all liability insurance policies, including any policies for tail coverage, purporting to provide coverage relevant to care provided by Debtors and/or their employees and/or agents at Northside Medical Center, from January 1, 1996 through the present kw Doc FILED 02/16/12 ENTERED 02/16/12 14:44:59 Page 1 of 1