Harborview Enterprises LLC
, the company that operated Harborview Towers
, a high-rise senior citizen living center in Morehead City, North Carolina, that closed August 30, has filed Chapter 7 bankruptcy in Carteret County Superior Civil Court
. The bankruptcy has halted some twelve civil lawsuits against the company for alleged breach of contract that are attempting to recover apartment deposits that range from $90,000 to over $220,000.
The shareholders of the company are members of the Jernigan family, heirs of the founder Doris Jernigan. Her son, J. Ron Jernigan, is president of the company.
The residents of the senior housing building, under the terms of their occupancy agreements, were owed 80% of their deposits within two years after vacating their units for any reason, reports Mark Hibbs for www.carolinacoastonline.com
. Representatives of Harborview Enterprises LLC had told residents that the company was unable to give refunds because of their adverse financial circumstances. In July about two dozen tower residents were told that they needed to move out by the end of August due to the imminent closure of the building.
102-year-old Constance Browne did not vacate her unit since she had been moved to Carolina House
to receive nursing care. However, she still has her Harborview apartment where most of her belongings remain. According to the news report, “Ms. Browne called the situation ‘difficult’ and she remains uncertain as to how long her residency at Harborview will be allowed to continue. But she isn’t angry.”
“’I don’t care to be angry, but I think it’s so unfair. It seems so much more evident to me that they want to grab the most money from everyone else, even to the point of ignoring their previous promises, ignoring what they owe to others.’”
Jernigan stated that his family is “devastated” about the situation, which he avers was caused by the housing market crash of 2008 and not financial mismanagement.
After a number of complaints from residents, the Consumer Protection Division
of the state attorney general’s office, started an investigation. The Consumer Protection Division is a civil, not a criminal investigative authority.
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