Health Care & Insurance  February 13, 2024

North Shore questions promissory-note existence

LOVELAND — North Shore Manor Inc., in a response filed late Friday to an effort of Columbine Management Services Inc. through its Wapello Holdings LLC company to collect on an unpaid note, told Larimer County District Court that Wapello has acted “precipitously” in seeking summary judgment in the matter.

“Without waiting for discovery … Wapello precipitously filed its motion for summary judgment on a purported guaranty of a promissory note. In fact, Wapello refused even to afford North Shore the opportunity to inspect the original promissory note … the actual physical possession of which is required for enforcement,” North Shore said in its response.

John O’Brien, attorney for Wapello, declined to comment when contacted by BizWest.


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Wapello’s motion was filed Jan. 19 in an attempt by Wapello, Columbine and Robert Wilson, owner of those entities, to collect on what it said was a $2.1 million note.

The note was arranged in 2016 by Wilson when he was managing partner of North Shore; it was originally held by the Bank of Oklahoma. It was to be due on March 7, 2023, but on March 6, North Shore filed for bankruptcy protection. The majority owners of North Shore didn’t know at the time that Wilson had formed Wapello in Feb. 21, 2023, in order to purchase the note, according to North Shore’s responses. It wasn’t until April 17, 2023, that Wilson disclosed in a bankruptcy court filing that Wapello was now the holder of the note. 

Wilson personally and North Shore under Wilson’s direction had guaranteed the original note, and those guarantees transferred to Wapello when it took over the debt. The note was secured by the real estate owned by North Shore Associates Inc., a related company. It also permitted the note holder to intercept rent payments if the note went into default.

North Shore questioned the terms and validity of the note. It said that the original note with BOK was governed by Oklahoma law, which is not mentioned in the Jan. 19 filing in Larimer court.

Among North Shore’s objections are that Wapello failed to support its motion with an affidavit “made on personal knowledge” of the note, that Wapello may not be able to enforce the note if it does not actually have it, that Wapello has ignored “every request” to inspect the physical note, and there’s a discrepancy between the terms of the note and what Wapello says it is owed.

“…(R)epeated requests … strongly suggests that Wapello lacks physical possession of the note,” North Shore wrote to the court.

In a related case between the parties in which vendor companies affiliated with Columbine are attempting to collect on unpaid bills for products and services supplied to North Shore last year, District Judge Stephen Jouard posted an order on Friday indicating that the vendors’ “complaint in replevin” contained no request for replevin. Replevin is a process whereby seized goods may be returned to their original owner. 

“Accordingly, the court will not issue a show cause order or set an immediate possession hearing at this time…,” the judge wrote.

Centre Elderly Transportation Inc., et al, versus North Shore Manor Inc., case number 2024cv30100 filed in Larimer County District Court on Feb. 5, 2024.

North Shore Manor Inc. versus J. Robert Wilson, Columbine Management Services Inc., and Wapello Holdings LLC, case number 2023cv30883, filed Nov. 27, 2023, in Larimer County District Court.

North Shore Manor Inc., in a response to an effort of Wapello Holdings LLC to collect on an unpaid note, told Larimer County District Court that Wapello has acted “precipitously” in seeking summary judgment.

Ken Amundson
Ken Amundson is managing editor of BizWest. He has lived in Loveland and reported on issues in the region since 1987. Prior to Colorado, he reported and edited for news organizations in Minnesota and Iowa. He's a parent of two and grandparent of four, all of whom make their homes on the Front Range. A news junkie at heart, he also enjoys competitive sports, especially the Rapids.
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