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Bob Dean’s nursing dwelling empire in tatters as decide weighs insurance coverage settlement – ​​InsuranceNewsNet

louisiana nursing dwelling tycoon Bob Dean Jr.. take pleasure in a lifetime of wealth and luxurious, counting properties from Oregon to Maineranches, a herd of cattle and a slew of high-end basic automobiles to his title.

However little of it was really in Dean’s title. And most all of it was encumbered by hefty loans backed by the regular churn of aged and disabled sufferers who flowed by Dean’s seven south louisiana nursing properties.

Dean’s botched evacuation of 843 sufferers for Hurricane Ida, adopted by a state shutdown of all seven properties and their seizure by lenders, has left him broke, in keeping with data introduced over a two-day courtroom listening to in Jefferson Parish.

Dean is on the hook for $40 million in private ensures on loans for 3 of the nursing properties and different property.

The outcome, in keeping with attorneys pushing approval of an all-or-nothing class-action settlement, is there may be little probability that Dean’s former residents or their survivors could make Dean pay, past about $12.5 million complete from insurance coverage.

District Decide Michael Mentz mentioned he would rule by Monday over whether or not to approve a settlement that might be restricted to these funds.

Greater than a dozen residents died within the evacuation’s aftermath, although coroners have categorized solely 5 of these deaths as “storm-related.” Information present Dean, who wasn’t there, ignored workers pleas for assist and browbeat state well being inspectors who had been attempting to intervene.

Mentz appeared unpersuaded by proof introduced by Matthew Hemmeran lawyer for the Morris Bart legislation agency, which is opposing the settlement on behalf of scores of survivors and relations.

Hemmer got here armed with an skilled’s analysis exhibiting that a few of Dean’s properties had been value greater than the loans on them, whereas suggesting that Dean was nonetheless hiding property and different insurance coverage cash that survivors may faucet.

“I want I knew the place all the things is hidden, however we’re not satisfied there may be no more,” he mentioned.

Hemmer argued that attorneys main the settlement push had been ramming it by with out a full accounting of Dean’s property, probably shortchanging the plaintiffs.

However testimony from specialists employed by these attorneys poked holes within the arguments that Dean is solvent or that the sufferers suing over the evacuation may declare his property, that are held underneath LLC’s, even when he had been.

They pointed to proof that a number of of Dean’s defunct nursing properties had been severely broken from the storm, casting doubt on estimates that gross sales of properties together with varied insurance coverage funds may double the proposed settlement quantity.

Now 69, identified with dementia and underneath a court-ordered guardianship, Dean was nowhere round this week as legal professionals picked by his monetary rubble. His spouse of him, Karen Deanyou will have been named his guardian.

Susan Browna licensed public accountant employed by the category counsel, mentioned she discovered “no constructive fairness” within the nursing properties and estimated Dean’s complete debt at $73 million.

Dean’s properties are “not viable entities…They’re useless,” she mentioned. “His automobiles from him have been taken. The cows are gone. There’s nothing.”

The debt, and the potential loss to these looking for claims in opposition to Dean, grows by some $12,500 a day, Brown testified.

deans lawyer, H. Minor Pipesadditionally aimed to throw chilly water on Bart’s opposition to the settlement, arguing that the survivors couldn’t simply get to any of Dean’s property unrelated to the nursing properties, if there are any.

“You have acquired multi-state property points, big mortgage points, different collectors on the market who’ve seized every bit of property that pertains to these entities which have been sued,” Pipes mentioned.

Ready, he argued, “assumes we will repair that sometime and we will find yourself with this big pot of cash.”

Lawyer Rob Couhigco-class counsel, argued that ready on the prospect that Dean has extra property dangers an additional drain on accessible funds for survivors or their households.

“We won’t deliver again these 5 days, however we are able to make it a bit of bit higher for the households and people who have survived,” Couhig mentioned. “These individuals are dying. They’re outdated. Every little thing (Hemmer) has talked about is, perhaps there may be some cash sooner or later.”

Attorneys estimate that greater than 100 of Dean’s evacuated sufferers have died because the evacuation 14 months in the past.

Simply how a lot particular person plaintiffs would obtain underneath the proposed settlement will rely on a particular grasp who will type out their claims. It figures to common effectively underneath $10,000 per affected person after attorneys charges and prices.

Janice Verdin, a licensed nurse who labored for Dean at South Lafourche Nursing and Rehab, attended the two-day listening to. She mentioned she wasn’t shocked to listen to the main points of Dean’s collapsed empire.

Verdin evacuated to the Independence warehouse along with her intellectually disabled aunt, Marie Rousselwho later died.

“He ran his companies low cost,” mentioned Verdin. “I am not shocked that he is broke, however I do not care in regards to the cash. We may begin to have some closure.”

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