Additional Information for United Home Care, Inc.

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

Plaintiffs ACP GP, LCC ("ACP") and Alleon Capital Partners, LLC ("Alleon") are Delaware limited liability companies with their principal places of business in Teaneck, New Jersey. Defendants United Home Care, Inc. ("United") and Trinity Home Health Care, Inc. ("Trinity") (collectively, "Borrowers") are Louisiana-based corporations. This dispute arises from a Loan and Security Agreement dated December 16, 2016, between Plaintiffs and Borrowers, pursuant to which Plaintiffs loaned certain "discretionary advances" to Borrowers. As collateral for the advances, Plaintiffs obtained a security interest in BolTowers' present and future accounts as well as certain chattels. The Loan and Security Agreement contains an acceleration clause, which provides that the entire balance shall, at Plaintiffs' option, become immediately due and payable on demand. Defendants DMS Healthcare, Inc. ("DMS") and John D. Jones, the sole owner of United, Trinity, and DMS, guaranteed all amounts owed to Plaintiffs on the advances and promised to pay Plaintiffs the guaranteed amounts on demand. Plaintiffs further secured the advances they made to Borrowers with an interest in DMS's present and future accounts and chattels.

Plaintiffs allege that Defendant Charlie Simpson, Borrowers' former Chief Operating Officer, and Defendant Charles Gardner, Borrowers' former Controller, had executed and delivered to Plaintiffs certain Validity Guarantees dated December 13, 2016, in order to induce Plaintiffs to enter the Loan and Security Agreement with Borrowers. In those Validity Guarantees. Gardner and Simpson warranted the validity of the collateral and indemnified Plaintiffs for any damages resulting from a breach of any statement in the Validity Guarantees or from Plaintiffs' reliance upon a misstatement or fraud on the part of any officer, employee, or agent of BolTowers. Only the Validity Guaranty executed by Gardner is currently at issue on Gardner's Motion to Dismiss.

Plaintiffs allege that Gardner and Simpson collectively misappropriated over S3 .8 million from Borrowers' bank accounts and engaged in a check-kiting scheme in breach of their representations under the Validity Guarantees. Additionally, despite knowledge that Borrowers would be unable to fulfill their obligations under the Loan and Security Agreement, Gardner and Simpson continued to seek advances on behalf of Borrowers from Plaintiffs under the Loan and Security Agreement. Plaintiffs claim that Gardner and Simpson breached their respective Validity Guarantees and are liable for a portion of the damages sustained by Plaintiffs. Plaintiffs further claim that they acted in reliance on certain statements made by Gardner and Simpson in their Validity Guarantees when making advances to Borrowers. Plaintiffs invoked the acceleration clause in the Loan and Security Agreement, and Borrowers defaulted by failing to repay the balance. Accordingly, Plaintiffs brought this action for breach of contract against Borrowers, seeking $1,661,732.40 plus interest on the advances, as well as against Gardner and Simpson for their alleged breaches of the Validity Guarantees. Gardner now moves to dismiss Plaintiffs' claims against him, generally arguing that: (i) the Court lacks personal jurisdiction over him as a Louisiana resident with few contacts with New Jersey; (ii) this Court is an improper venue for this dispute; (iii) Plaintiffs fail to state a claim for breach of contract because the Validity Guaranty is not an enforceable contract and, if it is. Gardner did not breach it; and (iv) venue should be transferred to Louisiana in the interest of justice.

For the aforementioned reasons, Defendant's Motion to Dismiss and/or Transfer Venue is denied.

As of April 15, 2021, the stipulated final judgment was entered in favor of the Plaintiffs ACP GP LLC and Alleon Capital Partners, LLC against Defendant Charles Gardner, in the amount of $400,000.00 on account of all claims against Gardner in this action and Defendants, John D. Jones, and DMS Healthcare, Inc., in the amount of $3,334,376.43 on account of all claims in this action. As for Charlie Simpson, a continued settlement court hearing will be held as a telephone conference and initiated by the plaintiff on June 16, 2021.

See details at https://ecf.njd.uscourts.gov/

The company is no longer in business due to Chapter 7 Bankruptcy Petition #18-31053 filed on July 9, 2018 in U.S. Bankruptcy Court Western District of Louisiana.

October 25, 2018 is the deadline for filing claims.

The bankruptcy trustee for the case:
John Clifton Conine
1150 Miller Farm Rd.
Natchitoches, LA 71457-5322
(318) 354-8413.

For additional information please contact:
Office of U.S. Trustee
300 Fannin St. Ste 3196
Shreveport, LA 711101
(318) 676-3456.

See details https://www.inforuptcy.com/browse-filings/louisiana-western-bankruptcy-court/3:18-bk-31053/bankruptcy-case-united-home-care-inc