The legal battle over the fate of four Vermont elderly care facilities is playing out in court this week, with the state arguing it needs to install a permanent manager to take over the residential care homes from a Texas-based investment firm.
Last month, the state installed a temporary receiver to take over daily operations at four of the facilities. Vermont’s attorney general said the ownership failed to carry out basic business practices for months and was even running low on food.
The facilities — Allenwood at Pillsbury, Pillsbury Manor South, Harborview in South Burlington and Homestead at Pillsbury in St. Albans — are owned by the Dallas-based company East Lake Capital Management.
The company and its owner, Andrew White, who appeared in Washington County Superior Court on Monday, are expected to argue that East Lake should retain management at the facilities.
The company also is expected to argue that attorney Doug Wolinsky, who was appointed as the facilities’ temporary receiver last month, is unfit to serve in his current capacity.
In a motion to disqualify the temporary receiver submitted to the court this month, the company argues that Wolinsky’s law firm, Primmer Piper Eggelston & Cramer, previously represented East Lake Capital Management, meaning that Wolinsky has a conflict of interest.
A clerk at the court said documents in the case were not available to reporters on Monday afternoon.
State officials moved to install new management at the facilities last month after receiving complaints from residents and their family members about the company’s failure to cash checks or return deposits.
This week’s trial is scheduled to run through today.