Pinegrove Manor v Sheperd
Annotate this CaseDecided on December 22, 2010
Supreme Court, Nassau County
Pinegrove Manor d/b/a Grace Plaza Nursing and Rehabilitation Center, Inc., Plaintiff,
against
Catherine M. Sheperd, Defendant
Glengariff Health Care Center Inc., Plaintiff, - against -
against
Catherine M. Sheperd, Defendant.
2945/06
Plaintiff - Abrams, Fensterman, Fensterman
Defendant - Lynch Legal Associates, LLP
Antonio I. Brandveen, J.
This Court presided at a bench trial on this matter held on February 8th ,9th and March 10th, 2010. The Court reviewed and considered all of the credible evidence adduced at the trial, including but not limited to the parties' requested findings of fact. The underlying disputes arise from the plaintiffs' claims of breach by the defendant of admission agreements executed by the defendant regarding the stay of her aunt, Susan M. Hugue, at each of the defendant's facilities as well as the defendant's fraudulent transfer of her aunt's residence at 25 The Oaks, Roslyn Estates, New York. The defendant claims her aunt sold that property on October 30, 2003, two and half years before the plaintiffs' claims, the $1.26 million sale proceeds were used on October 31, 2003 to purchase a new $505,000.00 residence at 50 Locust Lane, Glen Head, New York for the aunt, the defendant and the defendant's daughter.
The Court finds from the credible evidence the following facts: The plaintiff Glengariff Health Care Center admitted the defendant's aunt as a resident from March 9, 2005 through July 24, 2005. The plaintiff Pinegrove Manor d/b/a Grace Plaza Nursing and Rehabilitation Center, Inc. admitted the defendant's aunt as a resident from March 9, 2005 until November 17, 2005, when the aunt passed away. The defendant, who had her aunt's power of attorney since 1999, signed admission agreements on March 9, 2005 and March 9, 2005 for her aunt with each respective facility because the aunt was not able to sign because of dementia and blindness. The defendant gave representatives of Glengariff Health Care Center information about her aunt's Medicaid benefits which Glengariff Health Care Center used to verify the resident's status.
Glengariff Health Care Center determined the aunt had community Medicaid coverage, not long term nursing home Medicaid coverage. Glengariff Health Care Center representatives immediately informed the defendant of the need to submit a conversion application to Medicaid to qualify her aunt for long term nursing home care, and requested her to supply her aunt's financial records from 36 months prior to her aunt's admission. The defendant, an $30,000.00 per annum bank employee with 18 years experience testified she had prior experience assisting some customers with Medicaid applications. She engaged in conversations and received correspondence from representatives of Glengariff Health Care Center, Pinegrove Manor and a caseworker at the Nassau County Department of Social Services regarding the Medicaid application of her aunt. Documents were submitted to Medicaid for the conversion application, but it was denied on November 16, 2005, based on Medicaid's determination of $385,603.21 of excess resources available to the aunt in connection with the real estate sale resulting in an assessment of 40.12 months of a penalty period.
The defendant used the October 30, 2003 sale proceeds from her aunt's only asset to buy the $505,000.00 Glen Head home in her name only, as well as repair and renovate it for $150,000.00. The defendant refinanced Glen Head property during the years after its purchase, including a 2009 reverse mortgage for her benefit. None of these monies were used to pay the outstanding nursing home bills from the plaintiffs, and the defendant paid no legally cognizable consideration for the receipt of the October 30, 2003 sale proceeds. [*2]
This Court makes the following legal conclusions: The credible evidence shows there are legally binding agreements of admission which were signed by the defendant regarding the nursing home care of the defendant's aunt. There was "resident's income or resources available to pay for care in the facility." (see 42 USC § 1396r[C][5][B] [ii].). The plaintiffs demonstrate they performed under those agreements, but the defendant failed to perform which resulted in damages to both plaintiffs. The defendant agreed to act as a representative of the Resident and pay the bills of these nursing home facilities which performed services for on the defendant's aunt, and the defendant agreed to use her aunt's financial resources to pay those bills. Medicaid denied the conversion application which then required the defendant to pay the bills from the aunt's resources, but the defendant breached the agreement and sold the real property. This Court is persuaded by the credible evidence the plaintiff facilities have established a prima facie showing the defendant failed to use the home sale proceeds to pay the expenses incurred by her aunt which constitutes a valid basis for recovery by the plaintiffs for the defendant's breach of contract. The credible evidence shows the defendant made a conveyance of real property with intent to fraudulently transfer the property with a view to Medicaid provisions. Moreover, "[u]nder the applicable provisions of the Debtor and Creditor Law, the plaintiff facility may proceed against the defendants and seek to void the transfer of the property if it can demonstrate that the conveyance was made with the actual intent to defraud (see, Debtor and Creditor Law §§ 273, 276, 278; see also, McLaughlin v. McLaughlin, 155 AD2d 418, 547 N.Y.S.2d 562)" (Putnam Nursing & Rehabilitation Center v. Bowles, 39 AD2d 479, 658 N.Y.S.2d 57 [2nd Dept, 1997]). In opposition, the defendant has not shown a valid defense to the claims of the plaintiffs. The plaintiffs are entitled to damages equal to the expense of providing services to the defendant's aunt who was under their care as proven by the evidence submitted by the plaintiffs at trial.
Accordingly, The plaintiff GLENGARIFF HEALTH CARE CENTER INC. is awarded judgment against the defendant CATHERINE M.. SHEPERD in the sum of $67,402.76, plus interest at the rate of 16% from July 24, 2005, together with costs, disbursements and reasonable attorneys' fees.
The plaintiff PINEGROVE MANOR d/b/a GRACE PLAZA NURSING and REHABILITATION CENTER, INC., is awarded judgment against the defendant CATHERINE M.. SHEPERD in the sum of $26,049.00 plus interest at the rate of 15% from November 7, 2005 together with costs, disbursements and reasonable attorneys' fees.
Submit Judgment.
So Ordered
Dated: December 22, 2010
E N T E R:
______________________________
J. S. C.
FINAL DISPOSITION XXXNON FINAL DISPOSITION
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