- Judge Can Not Impose an ‘Unusual’ Condition on a Reversal of a Default Judgment in a Nursing Home Breach of Contract Lawsuit;
- Tortious Interference With Contractual Relationship Claim Most Recent Possible Remedy Nursing Homes can Employ Against Children of Nursing Home Residents;
- Conservator Owes Duty to Nursing Home to Timely Apply for Medicaid;
- Agent Under Power of Attorney Liable for Damages to Nursing Home for Breach of Contract;
- Conveyance to Son Was Fraudulent, But His Siblings May Also Be Liable Under Filial Support Law;
- Nursing Home May Sue Resident's Daughter for Breach of Contract.
A recent case demonstrates just how aggressive a nursing home can be when protecting its interests. A New York appeals court ruled, though, that the nursing home resident’s son, who signed an admission agreement agreeing to take all necessary steps to provide documentation for his mother’s Medicaid application, is entitled to summary judgment in a breach of contract claim by the nursing home, because there was no evidence his actions caused her to be ineligible for Medicaid. Wedgewood Care Center, Inc. v. Kravitz (N.Y. Sup. Ct., App. Div., 2nd Dept., No. 2017-12681, Aug. 18, 2021).
Eric Kravitz admitted his mother, Beatrice Kravitz, to a nursing home and signed an admission agreement. The admission agreement stated that Mr. Kravitz would be personally liable if he failed to take all necessary steps to provide requested documentation to Medicaid or if his actions contributed to non-payment of fees. The nursing home applied for Medicaid on Ms. Kravitz’s behalf, but the state determined she had excess resources. Ms. Kravitz died owing the nursing home almost $50,000.
The nursing home sued Mr. Kravitz for breach of contract, claiming that he failed to provide documentation to assist with Ms. Kravitz’s Medicaid application and that he had control over some of Ms. Kravitz’s assets. The nursing home argued that Mr. Kravitz was contractually obligated to have Ms. Kravitz sign a release of her financial records and obtain documentation from other entities. Mr. Kravitz filed a motion for summary judgment, arguing that the state did not deny Medicaid coverage because of his actions. The trial court granted the nursing home summary judgment. Mr. Kravitz appealed.
The Supreme Court of New York, Appellate Division, 2nd Department, reversed and granted summary judgment to Mr. Kravitz on the breach of contract claim relating to his failure to cooperate with the Medicaid application. The court ruled that the “admission agreement did not require the defendant to provide documents or information that were not within his possession or control” and that Mr. Kravitz’s actions did not cause Ms. Kravitz to be ineligible for Medicaid. According to the court, “the admission agreement expressly limited the scope of the [Mr. Kravitz’s] liability to circumstances where his own breach of the agreement constituted a proximate cause of the [nursing home’s] damages.”
The court also ruled that although Mr. Kravitz had control over some of Ms. Kravitz’s assets, the nursing home did not demonstrate that those assets were available to pay for her care. The court remanded the case for further proceedings to consider Mr. Kravitz's duty to use his mother's assets to pay the nursing home.
The case is not over. The son lost in the trial court, but won on appeal, sending the case back to the trial court for further consideration. The son may or may not prevail before the trial court upon reconsideration, but one thing is clear- the son has expended and lost what is probably an extraordinary amount in legal expense and time, simply because he was the person responsible for his mom, and that placed him between the nursing home and money.
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