RSCR Inland, Inc. v. State Dept. of Public HealthAnnotate this Case
This case arose following the death of Eric, a resident of Chapala House, licensed as a “long-term health care facility” under the Long-Term Care, Health, Safety, and Security Act of 1973 (the Act) - more specifically, as an “[i]ntermediate care facility/developmentally disabled habilitative” (ICF/DD-H). Plaintiff-appellant RSCR Inland, Inc. (ResCare) owned Chapala House. Defendant-appellant California Department of Public Health (the Department) issued a citation and imposed a civil penalty on ResCare in connection with Eric’s death, and ResCare brought this lawsuit to challenge the citation and penalty. The Court of Appeal addressed the scope of the “reasonable licensee defense” through which a California long-term health care facility could show that a citation for a regulatory or statutory violation should be dismissed, even though there was a factual basis for the citation. The Department argued the defense was available only in the event of an “emergency” or “special circumstances.” The Court of Appeal rejected that view, holding that the facility may succeed in dismissing a citation by demonstrating that it did what might reasonably be expected of a long-term health care facility licensee, acting under similar circumstances, to comply with the regulation or statute that allegedly was violated. “This standard differs from the required showing of due care in a typical negligence case because the facility must show reasonable care directed at complying with the regulation or statute, not reasonable conduct in general. But the standard does not require an emergency or an unusual circumstance.” Applying the statutory standard, the Court concluded substantial evidence supported the trial court’s finding that the facility here had established the reasonable licensee defense.