Health Industry Lease Dispute: Turner Healthcare Files $45 Million Lawsuit Against Akerman LLP
A lawsuit has been initiated by Turner Healthcare Facilities Fund, a subsidiary of a prominent $2 billion impact investment firm, against the reputable real estate law firm Akerman LLP. The suit centers on allegations of negligence related to the drafting of lease agreements that enabled a healthcare tenant to exit seven significant leases and avoid substantial termination fees.
Background of the Dispute
The lawsuit, amounting to $45 million, was filed in the Miami-Dade Circuit Court and is directed not only at Akerman but also at one of its partners, Andrew Wamsley. This legal action arises from a partnership aimed at developing outpatient healthcare facilities for CareMax, a Miami-based provider that filed for Chapter 11 bankruptcy in 2024.
Key Details:
- Date of Filing: Monday
- Court: Miami-Dade Circuit Court
- Claim Amount: $45 million
- Defendants: Akerman LLP and partner Andrew Wamsley
- Healthcare Provider Involved: CareMax
Turner Healthcare Facilities Fund is overseen by Turner Impact Capital, led by Bobby Turner, which focuses on socially impactful investments.
Allegations Against Akerman LLP
According to the lawsuit, Turner alleges that Wamsley inadequately reviewed and approved seven key leases, which lacked crucial terms allowing the landlord to enforce remedies following tenant defaults. As a consequence, Turner experienced notable financial losses.
Specific Claims Include:
- Lease Flaws: Another Akerman partner identified significant flaws in the lease after approval, underscoring internal discrepancies.
- Negligence: “Akerman made a $45 million mistake,” stated Javier Lopez, an attorney from Vedder Price representing Turner. He emphasized that Akerman acknowledged its error but failed to rectify the financial impact on Turner.
The allegations further detail that the healthcare provider, CareMax, exited these facilities following escalating financial difficulties, leading to serious disruptions within Turner’s real estate portfolio.
Legal Implications and Lease Provisions
Turner Healthcare claims that the agreements contained provisions regarding rent acceleration—a common clause allowing landlords to demand immediate payment of remaining rent if the tenant breaches the lease. However, Florida law restricts such provisions, requiring explicit terms for landlords to act on behalf of the tenant.
Legal Insights:
- Rent Acceleration Risks: Under Florida law, landlords cannot enforce rent acceleration if a lease is terminated unless explicitly stated.
- Consequences of Flawed Lease: As a result of the inadequately drafted lease, Turner was left without avenues to recover owed funds when CareMax vacated the properties.
The Financial Fallout from CareMax’s Bankruptcy
CareMax filed for Chapter 11 bankruptcy in November 2024, facing $639 million in debt against $390 million in assets. This drastic financial situation arose shortly after exiting the seven leases managed by Turner.
Financial Breakdown:
- Total Debt: $639 million
- Total Assets: $390 million
Conclusion
The ramifications of Akerman’s alleged malpractice are extensive, as Turner Healthcare Facilities Fund claims to be on the hook for tens of millions of dollars without adequate legal recourse. According to the lawsuit, “Akerman failed to advise Turner of the most basic and appropriate remedies available to landlords under Florida law.”
Key Takeaway:
This case serves as a poignant reminder of the critical importance of precise legal drafting and thorough review processes in real estate transactions, especially concerning healthcare facilities in today’s challenging economic climate.
For further exploration on related topics, consult Florida real estate law and commercial lease agreements.