Opinion ID: 2023816
Heading Depth: 1
Heading Rank: 3

Heading: Paragraph (c) of the Injunction

Text: In its report, Community contends that even though it is no longer a Medicaid provider, paragraph (c) of the Injunction is not moot and should be affirmed since FSSA is now simply trying to attack the facility through the landlord rather than through the operator. FSSA contends that the factual situation underlying the preliminary injunction has changed dramatically and requests that this Court vacate the Injunction in its entirety and remand to the trial court for dismissal of the case. FSSA submitted a sworn declaration stating that Community no longer operates any nursing homes but just owns the buildings in which another corporation operates nursing homes. Community's filing does not disagree with this representation. In its Findings of Fact, Conclusions of Law and Preliminary Injunction, the trial court found that Community had established a likelihood of success both on the merits of its claim that FSSA's attempted collection methods were improper and on the merits of its administrative claim to determine entitlement to the reimbursement; that Community and the mentally retarded residents of New Horizons had no adequate remedy at law and would suffer irreparable harm if a preliminary injunction were not entered; that the balance of harms favored Community and the residents; and that the public interest would be served by granting an injunction. The order makes clear that the trial court was particularly concerned about what would become of the residents if New Horizons were forced to close its doors. At present, however, Community no longer operates New Horizons or any other nursing home. The potential impact of FSSA's collection efforts on New Horizons' residents may be much different now that Community is no longer New Horizons' operator but merely its landlord. Moreover, FSSA reports that on December 31, 1996, the Delaware Superior Court entered summary judgment in a separate action (Superior Court Action) that FSSA is entitled to recover the reimbursement from Community. These developments may have caused a dramatic shift in the balance of the factors the Delaware Circuit Court considered in deciding to enter the Injunction. Rather than reviewing the propriety of paragraph (c) of the Injunction on an outdated record or on an incomplete understanding of current circumstances, especially when the scope of paragraph (c) is not entirely clear, we conclude that the best course is to permit the trial court to reassess the propriety of preliminary injunctive relief in light of recent events. Before the Court of Appeals issued its now vacated opinion, it had stayed paragraph (c) of the Injunction. This Court now vacates paragraph (c) and remands to the trial court to reconsider Community's motion to preliminarily enjoin FSSA's collection efforts. The trial court is not foreclosed from considering whether the issue of injunctive relief should more appropriately be addressed in the Superior Court Action.