Dermatology clinic adversary suit filed over lease

LOVELAND and BOULDER — Court filings in the bankruptcy case involving Lake Loveland Dermatology PC, Loveland, and Skin PC, Boulder, continued late last week with the filing of another adversary complaint, this time against 790 Eisenhower LLC, the real estate company that owns the Lake Loveland Dermatology clinic location.

Skin PC and its doctor, Kevin Mott, bought Lake Loveland Dermatology in 2016 and filed for bankruptcy in March of this year. Prior adversary actions allege that former owner Patrick Lillis and his wife, Tracy Amick, who worked as business manager for the Loveland clinic, inflated the true value of the practice and, while still employed by the practice after Mott purchased it, caused promissory-note payments to Lillis to be paid out of Lake Loveland Dermatology revenue — money the plaintiffs said should have gone to other vendors.

The new action filed Friday alleges that 790 Eisenhower LLC, which is registered to Lillis, increased rent twice prior to the sale of the clinic without disclosing that information to the buyer. As owner of both the property and the clinic, Lillis established a 2011 lease and subsequent 2012 and 2016 leases in order to increase rent — from $156,000 annually in 2011 to $307,000 annually in 2016. He signed as both tenant and property owner in those leases. 

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The suit alleges that Lake Loveland Dermatology received nothing in return for the higher rent. 

It asks the bankruptcy court to either restore the 2011 lease or permit the clinic to enter into a month-to-month arrangement without penalty if it would decide to move to another location. It also asks for return of $825,000 in “illicit rent” charged since August 2012 and that 790 Eisenhower LLC be paid last among unsecured creditors in the bankruptcy settlement because the real estate entity “gave itself an unfair advantage over LLD’s other creditors,” the suit said.

Jordan Factor, an attorney with Allen Vellone Wolf Helfrich & Factor PC in Denver, representing Lillis, did not return a call Monday morning asking for information about the suit.

Meanwhile, Lake Loveland Dermatology announced plans on Aug. 5 that it would open an office in Windsor in the new Associates in Family Medicine facility.