« Back to Creditor Sites

Contact Info

SDH Trust Committee & Trustee counsel:

Jeffrey L. Kandel

  • Pachulski Stang Ziehl & Jones LLP
  • 10100 Santa Monica Blvd., 13th Floor
  • Los Angeles, CA  90067
  • (310) 277-6910


Richard M Kipperman

  • Corporate Management
  • P.O. Box 3010
  • La Mesa CA 91944-3010
  • (619) 668-4508

San Diego Hospice & Palliative Care Corporation

This site has been created to provide unsecured creditors with information about the pending chapter 11 bankruptcy case of San Diego Hospice & Palliative Care Corporation


On July 24, 2014, the Bankruptcy Court approved two important settlements in the San Diego Hospice case: with the WARN plaintiffs and with the United States government/CMS. 

WARN Plaintiffs: After months of wrangling over whether to include potential additional class members in the WARN settlement who were not on the lists prepared by the debtor, we were unable to reach agreement with plaintiffs’ counsel as to the composition of those additional class members. Accordingly, the settlement was approved on its original terms. The liquidating trustee will, however, file claims on behalf of 18 other former employees who clearly were omitted by the debtor in error. Other former employees who believe they are entitled to a recovery can file a claim before the employee claims bar date (30 days following entry of the order approving the WARN settlement, which should occur early next week). The liquidating trustee will have until 60 days thereafter to file any remaining objections to claims—the claims objection process is already well underway. 

US/CMS Settlement: With respect to the CMS settlement, we resolved the objections of the WARN plaintiffs, and the Bankruptcy Court approved the settlement on the terms we discussed: (i) the government gets 65% of cash on hand not designated for other specific purposes (e.g., the $3.4 million set aside for WARN claims), with an immediate $1 million down payment; (ii) general unsecured creditors get the first $3 million of any “new” monies brought into the liquidating trust; and (iii) any new monies over and above $3 million will be split 80% to general unsecureds and 20% to the government.

The San Diego Hospice Chapter 11 Case

On February 4, 2013, San Diego Hospice & Palliative Care Corporation  ("San Diego Hospice") commenced chapter 11 case number 13-01179 in the United States Bankruptcy Court for the Southern District of California in San Diego, California ("Bankruptcy Court"). The Honorable Margaret M. Mann is the presiding judge.

The Plan and Liquidating Trustee

On September 23, 2013, the Bankruptcy Court approved the First Amended Liquidating Plan for San Diego Hospice and Palliative Care Corporation (June 24, 2013), as Modified on August 27, 2013, and September 18, 2013, Jointly Proposed by the Debtor and the Official Committee of Unsecured Creditors (the “Plan”). The Plan, which was a collaborative effort of San Diego Hospice and the Committee, is a liquidating plan that provides for the creation of a liquidating trust for the benefit of San Diego Hospices’s creditors and the appointment of a liquidating trustee. Richard Kipperman was selected to serve as the liquidating trustee (the “Trustee”). A postconfirmation committee (the “SDH Trust Committee”) was formed, comprised of the members of the postpetition Committee. The Trustee, under the supervision of the SDH Trust Committee, will review and resolve all claims filed against San Diego Hospice and will continue to liquidate the assets and distribute the proceeds thereof.

Pachulski Stang ZIehl & Jones LLP has been retained to represent the Trustee and the SDH Trust Committee.

 During the pendency of the chapter 11 case (the “Case”), San Diego Hopsice was involved in disputes with the Department of Health and Human Services (“HHS”) regarding a qui tam action and a claim filed against the estate for over $100 million, with San Diego Hospice Foundation regarding certain restricted endowment funds, and with a class of employees (the “Employees”) regarding potential WARN Act violations.

The Trustee and HHS have entered into a settlement in principle and HHS is preparing the settlement documents. The Trustee has also entered into a settlement in principle with San Diego Hospice and a settlement with the Employees has been approved by the Bankruptcy Court.  The process towards implementation of the settlement with the Employees is under way and the Trustee believes it will be fully effectuated in or around June 2014.


Richard M Kipperman

SDH Trust Committee & Trustee counsel:

Jeffrey L. Kandel

For More Information

Please contact Jeffrey Kandel at PSZJ with any questions, comments, or requests regarding the San Diego Hospice bankruptcy case (click on name to email or telephone at 310.277.6910). For information on how to gain access to documents filed in these cases (in addition to the selected documents available on this page), please click on the “Register as a PACER User” link.