UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF FLORIDA

WEST PALM BEACH DIVISION

www.flsb.uscourts.gov

In re:

PALM BEACH BRAIN & SPINE, LLC.,

MIDTOWN OUTPATIENT SURGERY

CENTER, LLC, and MIDTOWN 

ANESTHESIA GROUP, LLC, 

 

 Debtors.

CHAPTER 11

CASE No. 19-20831-MAM

(Jointly Administered)

ORDER GRANTING 

DEBTOR’S MOTION TO APPROVE SETTLEMENT 

AGREEMENT PURSUANT TO BANKRUPTCY RULE 9019

This matter is before the Court on the Debtor ‘Motion to Approve Settlement Agreement 

Pursuant to Bankruptcy Rule 9019 [Doc. 221] (the “Motion”), seeking entry of an order authorizing 

the Debtors to agree to a settlement with respect to amounts owed by a certain patient with the initials 

D.K., where the balance shown on the patient’s accounts with the Debtors is $269,751.97 in the 

ORDERED in the Southern District of Florida on December 26, 2019.

Mindy A. Mora, Judge

United States Bankruptcy Court

_____________________________________________________________________________

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aggregate (the “Accounts”)1, under which settlement the patient would pay $88,500.00 in cash as 

a combined amount to all the Debtors (the “Settlement Amount”) in full accord and satisfaction 

of all liabilities for the Accounts. CareCentric Investments I, LLC (“CareCentric”)assert that the 

Account was sold prior to the commencement of this case and that the proceeds thereof are not 

property of the Debtors’ estates, whereas The Northern Trust Company (“Northern Trust”) asserts 

that it holds a lien on the patient bill issued by Midtown Outpatient Surgery Center, LLC, and other 

parties may claim some interest in the Account.. It appearing that this Court has jurisdiction to 

consider the Motion pursuant to 28 U.S.C. §§ 157 and 1334; and it appearing that venue of this 

case and the Motion in this district is proper pursuant to 28 U.S.C. §§ 1408 and 1409; and it 

appearing that this matter is a core proceeding pursuant to 28 U.S.C. § 157(b); and it appearing 

that proper and adequate notice of the Motion has been given and that no other or further notice is 

necessary; and after due deliberation, the Court having determined that the relief requested in the 

Motion is in the best interests of the Debtors, their estates and their creditors; and good and 

sufficient cause appearing therefor, 

 ________________

IT IS HEREBY ORDERED THAT:

1. The Motion is GRANTED as set forth herein.

2. The Debtors are authorized to settle any and all controversies related to the 

Accounts in exchange for receipt of the Settlement Amount.

3. The Debtors are authorized to execute any necessary agreements and related 

1 Debtors represent that the patient bills that make up the Accounts have been issued by the Debtors or their 

affiliates as follows: Palm Beach Brain & Spine-$85,193.00; Neurological and Orthopedic Institute-$5,470.00;

Midtown Outpatient Surgery Center-$104,918.00; Midtown Anesthesia Group- $13,988.30; Orthodics- $58,387.50; 

Midtown Rehab Center-$1,795.00. 

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documentation consistent with the relief granted herein.

4. Immediately upon receipt of the Settlement Amount or any other proceeds related 

to the Account, the Debtors shall place such funds into a segregated trust account and shall not use 

or otherwise transfer any such funds, except by separate order of the Court upon notice and hearing.

5. Nothing herein shall be construed as a finding with respect to whether or not the 

Accounts or the proceeds thereof are property of the estate or what creditors or other parties may 

have rights to or an interest in such proceeds, or the extent thereof, with all such rights and 

arguments being preserved.

6. The proceeds shall be held in escrow in the segregated Debtor in Possession 

accounts and not disbursed until further Order of this Court, with all rights, interests and liens 

therein, if any, attaching thereto. In the event the Debtors, CareCentric Investments I, LLC and 

The Northern Trust Company cannot come to an agreement regarding allocation of the Settlement 

Amountbetween the Debtors, nothing herein shall waive the right of The Northern Trust Company 

to challenge the proposed allocation by way of separate motion to filed with this Court. Debtors 

shall promptly provide to Northern Trust copies of the described patient bills, which are subject to 

the terms of this Court’s HIPPA Order.

7. The terms and conditions of this Order shall be immediately effective and 

enforceable upon its entry.

8. The Debtors are authorized and empowered to take all actions necessary to 

implement the relief granted in this Order.

9. This Court shall retain jurisdiction with respect to all matters arising from or 

relating to the interpretation or implementation of this Order.

# # #

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Submitted By:

Dana Kaplan, Esquire

KELLEY, FULTON & KAPLAN, P.A.

1665 Palm Beach Lakes Blvd

The Forum - Suite 1000

West Palm Beach, FL 33401 

Tel. No. (561) 491-1200

Fax No. (561) 684-3773

e-mail: craig@kelleylawoffice.com

Copies furnished to:

Dana Kaplan, Esq., is directed to serve copies of this order on the parties listed on the attached 

mail list and file a Certificate of Service.

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