Neppel, et al. v. Development Homes, et al.Annotate this Case
Pamela Neppel, individually and as the parent and legal guardian of Z.N., an incapacitated individual, appealed amended judgment entered after a jury trial. She also appealed denying leave to amend her complaint, an order for an amended judgment, and an order denying her motion for attorney fees and costs. Development Homes, Inc. (DHI) cross appealed an order denying its motion for judgment as a matter of law. Z.N., at the time of the incident giving rise to this case, was living at a residential care facility operated by DHI. Neppel was Z.N.’s mother. Neppel filed this lawsuit alleging Z.N. was raped by another resident, referred to as S.O., who lived on the same floor of the facility as Z.N.’s housemate. Neppel alleged DHI had knowledge S.O. was a sexual predator and Z.N. was susceptible to abuse, yet DHI withheld information from her about the risk of placing the two together. Neppel also alleged DHI did not immediately report the rape or provide prompt and adequate medical care for Z.N. Along with DHI, Neppel sued various DHI employees, as well as S.O.’s co-guardians. The case was tried to a jury on counts of negligence and intentional infliction of emotional distress. The jury returned a verdict awarding Neppel and Z.N. $550,000 in damages. The jury specifically awarded Z.N. $100,000 for damages caused by DHI’s negligence. The jury also awarded Z.N. and Neppel $400,000 and $50,000 in damages, respectively, for past and future severe emotional distress caused by DHI. The jury did not find any of the individually-named defendants liable. DHI filed a motion to amend the judgment asserting it was entitled to charitable immunity under N.D.C.C. ch. 32-03.3, which set liability limits for certain charitable organizations. The court granted the motion and entered an amended judgment that applied the $250,000 charitable organization liability limit. After review, the North Dakota Supreme Court affirmed the order denying Neppel leave to amend her complaint and the order denying her motion for attorney fees and costs. The Supreme Court reversed the order denying DHI’s motion for judgment as a matter of law, finding Neppel’s appeal from the order for amended judgment was moot.