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Texas Court Asked to Appoint Receiver for Key Subsidiary of TSX Listed Northstar Healthcare, Inc. (TSX NHC) on Claims of Mismanagement and Breach of Fiduciary Duty
Date:2/17/2010

dealing by attempting to sub-lease Palladium to certain limited partners. Under this scenario, Northstar plans to shut down Palladium entirely, and lease its premises to a current partner, to the clear detriment of Plaintiff and other partners. 33. On account of the aforementioned actions, the Northstar companies have breached their duties of loyalty and care owed to the Partnership. 34. As a result of the Northstar companies' breach of their fiduciary duties, the Plaintiff has been damaged in an amount within the jurisdictional limits of this Court for which amount the Plaintiff sues. 35. Accordingly, and in addition to his actual damages, the Plaintiff is also entitled to exemplary damages for such breach for which amount the Plaintiff hereby sues. APPLICATION FOR APPOINTMENT OF RECEIVER 36. As a result of the foregoing, Plaintiff brings this action, made pursuant to section 11.404 of the Business Organizations Code, to have a receiver appointed for the assets and business of defendant in order to bring about a rehabilitation of the Partnership. All other requirements of the law have been satisfied. REQUEST FOR AN ACCOUNTING 37. In spite of the Partnership's worsening condition, the Northstar companies have cancelled regularly-scheduled meetings of the Partnership's Board of Governors, and have kept limited partners such as Plaintiff in the dark as to Palladium's current finances. On information and belief, the Northstar companies have also concealed their dealings with members of the Partnership, as well as their attempts to extract business from Palladium. Accordingly, Plaintiff requests that the court enter an order requiring Defendant to provide a verified accounting for the Partnership. 38. In order to protect his rights, Plaintiff has been required to
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SOURCE Brad Kovnat
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