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Judges rule in favor of daughter in payment dispute with nursing facility

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A woman who signed a move-in agreement at a skilled nursing facility as a “responsible party/agent” for her mother was able to prove to the Indiana Court of Appeals she should not be liable for money owed by her mother for care while at the facility.

Alexis Hutchison, pro se, appealed a $2,610.87 judgment against her for services rendered to her mother, Martha Farber, while Farber lived at Springhurst Health Campus. Farber was ill with cancer and required a nearly three-month stay at the facility. She died Feb. 21, 2013, while this litigation was pending.

The agreement Hutchinson signed says that the responsible party/agent agrees to pay the facility the full amount of the resident’s income and resources that the responsible party/agent controls or accesses. Hutchinson’s defense at trial focused on the fact she did not have power of attorney or the authority to manger her mother’s funds. The business manager of Springhurst testified that the facility did not have any records that Hutchinson had power of attorney over her mother. Hutchinson’s husband testified that a facility representative told Hutchinson she would not be personally responsible for her mother’s bill when she signed the agreement.

In Alexis Hutchison and Martha Farber, deceased and Trilogy Health Services, LLC, d/b/a Springhurst Health Campus, 30A01-1307-SC-316, the judges pointed out that Congress has imposed limitations on the concept of a family member being financially responsible for another family member’s care. Some resident-rights advocates claim that third-party guarantee or responsible party provisions are inherently illegal, although some courts have concluded under federal law that third parties can “volunteer” to sign as guarantors of payment to nursing homes.

“It appears Indiana courts have not yet expressly spoken to the legality of the responsible party provisions; although Hutchison urges us to declare that such provisions are unenforceable, we find it unnecessary to reach that issue today,” Judge James Kirsch wrote.

The agreement doesn’t define “responsible party” but says that person agrees to pay the full amount of the resident’s income and resources “that the Responsible Party/Agent controls or accesses.” There is no evidence that Hutchinson ever had authority to “manage, use, control or access” her mother’s income, financial accounts or other resources, as written in the agreement. The trial court erred, so the Court of Appeals reversed and remanded with instructions to enter judgment for Hutchinson.
 

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  1. What is this, the Ind Supreme Court thinking that there is a separation of powers and limited enumerated powers as delegated by a dusty old document? Such eighteen century thinking, so rare and unwanted by the elites in this modern age. Dictate to us, dictate over us, the massess are chanting! George Soros agrees. Time to change with times Ind Supreme Court, says all President Snows. Rule by executive decree is the new black.

  2. I made the same argument before a commission of the Indiana Supreme Court and then to the fedeal district and federal appellate courts. Fell flat. So very glad to read that some judges still beleive that evidentiary foundations matter.

  3. KUDOS to the Indiana Supreme Court for realizing that some bureacracies need to go to the stake. Recall what RWR said: "No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth!" NOW ... what next to this rare and inspiring chopping block? Well, the Commission on Gender and Race (but not religion!?!) is way overdue. And some other Board's could be cut with a positive for State and the reputation of the Indiana judiciary.

  4. During a visit where an informant with police wears audio and video, does the video necessary have to show hand to hand transaction of money and narcotics?

  5. I will agree with that as soon as law schools stop lying to prospective students about salaries and employment opportunities in the legal profession. There is no defense to the fraudulent numbers first year salaries they post to mislead people into going to law school.

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