COLUMBUS, Ohio — The City of Columbus is asking a federal court to dismiss the bankruptcy claim filed by the owners of an east Columbus apartment complex that was recently shut down over safety concerns.
Columbus City Attorney Zach Klein said the city filed a motion in the United States Bankruptcy Court Division of New Jersey in response to the claim from Paxe Latitude, the owners of Latitude Five25 on Sawyer Boulevard.
Klein says the owners are attempting to skip out on paying a more than $4 million judgement to displaced tenants, the city and Franklin County.
The fines stem from ongoing litigation involving unsafe, unsanitary living conditions at the complex.
“The ownership group at Latitude Five25 ruined the lives of tenants and are now trying to evade any responsibility for their actions by skipping town and running off to New Jersey to declare bankruptcy,” Klein said. “If you’re a business owner or landlord that harms Columbus residents, we’re going to go after you. The City will use every legal tool we have to ensure this judgement is paid, tenants are made whole, and management of the towers is transferred to a receiver.”
Latitude Five25 was evacuated on Christmas Day last year when some pipes burst due to the freezing temperatures, causing electrical damage.
The city condemned the complex after the buildings were found to be without potable water, heat and a working fire suppression system. Additionally, only one of four elevators are working.
On Feb. 16, the city announced Paxe Latitude was fined more than $4 million for violating provisions of a court order from January. Four days later, the owners filed for relief under chapter 11 of the United States Bankruptcy Code in New Jersey.
In its motion, the city is asking the court to dismiss the bankruptcy filing because it was made in bad faith, arguing it was made in order to evade the fines and appointment of a receiver to take over the property.
If the court allow the bankruptcy case to continue, the city is asking the court to allow the appointment of a receiver to occur while the case is pending to allow for continued maintenance, remediation of code violations and asbestos contamination at the complex.