HMOB of Roseland Owner Sues Roseland Ambulatory Surgery Center & Center for Special Surgery of Essex County for Failure to Pay Rent

May 18, 2021, District of New Jersey – Plaintiff HMOB of Roseland Owner, LLC in the jointly administered bankruptcy estate of Hajjar Business Holdings, LLC et al ( the “Debtor”) sues Roseland Ambulatory Surgery Center, LLC (“Roseland Ambulatory”)and Center for Special Surgery of Essex County, LLC (“Center for Special Surgery”) (collectively, the “Defendants”) to recover property of the estate under Sections 541 and 542 of the Bankruptcy Code. Plaintiff also objects to the Defendants’ claims under Section 502 of the Bankruptcy Code.

The Plaintiff and Center for Special Surgery were allegedly parties to a written amendment to a lease for a property. As a predecessor to the lease, Roseland Ambulatory was a tenant located at the property. Roseland Ambulatory assigned the lease to the Center for Special Surgery, which contracted with Plaintiff for space originally on the ground floor of the property. Plaintiff alleges that Center for Special Surgery did not pay rent to Plaintiff and is therefore in default under the lease. According to the complaint, the Defendants owe $764,344.39 to Plaintiff for delinquent payment.

Plaintiff alleges that the property and the rents derived therefrom are property of the bankruptcy estate under 11 U.S.C. § 541. Plaintiff further disputes that the Defendants are entitled to any claim against the estate and contends that the Defendants are liable for substantial damages and/or substantial monies to the estate. According to Section 502(d) of the Bankruptcy Code, the Plaintiff urges the court to enter an order waiving, discharging, and barring any claims that the Defendants may hold against the within the estate. Besides, Plaintiff also brings equitable subordination, fraudulent concealment, and unjust enrichment claims against the Defendants.

Plaintiff filed its Chapter 11 case on February 13, 2020, case no. 20-12552 (JKS). By order entered on February 24, 2020, the Debtors’ Chapter 11 cases were jointly administered at Case No. 12-12465 (JKS). The case is In re Hajjar Business Holdings, LLC et al in the United States Bankruptcy Court for District of New Jersey. Honorable John K. Sherwood is presiding over the Debtor’s cases. Plaintiff is represented by McManimon, Scotland & Baumann, LLC.

(196)