Court Rules Nursing Home Cannot Collect Debt from Son of Resident
In the case Village at the Greene v. Smith, an Ohio court held that the son of a nursing home resident did not breach the contract with the nursing home and thus was not liable for the debt allegedly due from caring for the resident.
The nursing home required the son to sign a contract in order to admit his father to the home which provided that the son “agree[d] to pay from his/her own resources any unpaid charges due to [Village] as a result of the Representative’s [the son’s] failure to cooperate in the Medicaid eligibility process.” The nursing home argued that the son was contractually obligated to pay the debt by this provision or, in the alternative, that he was liable for it because he transferred funds belonging to his father that could have been used to cover the amount owed.
As to the first argument, the Court rejected it, stating the contract could not be enforced because the provision was contrary to both federal and Ohio law: “a nursing facility may not accomplish through these types of contractual provisions (i.e., requiring a third-party representative to pay the nursing facility from the resident’s assets and/or to assist in obtaining government or insurance benefits to pay such charges) what federal and Ohio law strictly forbid: imposing personal liability on a resident’s representative who does not voluntarily agree to assume that responsibility.”
As the Court explained, Congress enacted a law that allows nursing homes to require a resident’s representative to pledge the resident’s resources to pay for the care of the resident, but that law expressly does not allow the nursing home to make the representative personally liable.
And as to the issue of the son being liable because he transferred his father’s funds, the Court rejected the argument, stating that it could be a basis for liability but the nursing home provided no evidence that the son did transfer his father’s funds or otherwise misrepresent to the nursing home any information about his resources.
Losing a loved one is a painful process that can feel almost impossible to handle. While nursing homes provide necessary care for the elderly across the country, some will attempt to illegally collect debts from family members or even friends who are not liable for the debt. Even worse, to try to collect these debts, some unscrupulous debt collectors will accuse family members of fraud without any evidence in an attempt to evade protections created by Congress and make family members personally liable for the debt and intimidate them into paying it.
If you have been sued by a nursing home and falsely accused of “fraudulent conveyance” of the resident’s funds, you may have rights under the Fair Debt Collection Practices Act and other consumer protection statutes. The Law Office of Ahmad Keshavarz is dedicated to helping consumers who have been sued over debts they do not owe, including debts arising from nursing home care. Please call (718) 522-7900 to set up a consultation. We are located at 16 Court St., 26th Floor, Brooklyn, NY 11241 and represent consumers throughout the New York City area.
