Bankruptcy judge orders settlement talks in Lake Loveland Dermatology case

LOVELAND — A court has ordered parties feuding over the bankrupt Lake Loveland Dermatology P.C. to begin settlement negotiations next month.

Judge Michael Romero ordered attorneys for Kevin Mott, owner of Skin P.C. in Boulder, and attorneys for Patrick Lillis and Tracy Amick to meet by July 9 to discuss possibilities for a “prompt settlement or resolution of the case” or develop a schedule for discovery, according to filings from the U.S. Bankruptcy Court of Colorado.

The parties have until July 23 to submit their proposals to the court.

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Through Skin P.C., Mott purchased Lake Loveland Dermatology, located at 776 W. Eisenhower Blvd., from Lillis and Amick in October 2016 for $8.76 million. Mott filed for Chapter 11 bankruptcy protection in March, reporting assets between $1 million and $10 million, and debts between $10 million to $50 million.

Mott later filed a complaint against Lillis and Amick in early May, claiming the couple falsified Lake Loveland’s financials and improperly paid themselves from the practice’s revenue. Attorneys for Lillis and Amick called those claims frivolous in a counterclaim filed later that month.

Attorneys for the two parties have also argued over whether Mott and the bankrupt clinic are liable to pay March and April rent and utilities at the Loveland location, which Lillis and Amick own. The court previously ordered Lake Loveland to pay back rent and attorney’s fees on June 14, and also granted Lillis until October 7 to determine if he wants to enforce the Loveland location’s lease or end it early.