Judge vacates receivership in Fort Collins Memory Care case

FORT COLLINS — In response to a motion filed by the Colorado attorney general, Larimer County District Court Judge Joseph Finley has reversed himself and ordered that a receivership he had authorized Feb. 7 be vacated.

Attorney General Phil Weiser asked the court March 5 to vacate the receivership order that had been applied to Fort Collins Memory Care LLC, which does business as the Aspens at Fort Collins. Weiser argued that the appointed receiver had not followed state law and was not licensed by the state to operate a memory care facility. 

“The court, having considered the Department of Public Health and Environment’s … motion to vacate…hereby grants the motion to vacate,” Judge Finley wrote.

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He said the hearing already scheduled for March 15 will continue as planned.

The judge’s decision means that Fort Collins Memory Care again has control of the operation and the oversight of the residents who live there.

At issue in the case is a dispute between Fort Collins Memory Care and its lender, BRMK Lending LLC. BRMK claimed that the facility was in imminent danger from a damaged sprinkler system when it sought the receivership. Fort Collins Memory Care denied that and said it had been trying to refinance the operation but had been rebuffed.