Beechwood Restorative Care Center v. Leeds

436 F.3d 147, 2006 U.S. App. LEXIS 2323, 2006 WL 225827
CourtCourt of Appeals for the Second Circuit
DecidedJanuary 31, 2006
DocketDocket No. 04-3248-CV
StatusPublished
Cited by27 cases

This text of 436 F.3d 147 (Beechwood Restorative Care Center v. Leeds) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beechwood Restorative Care Center v. Leeds, 436 F.3d 147, 2006 U.S. App. LEXIS 2323, 2006 WL 225827 (2d Cir. 2006).

Opinion

JACOBS, Circuit Judge.

Beeehwood Restorative Care Center, a partnership owned by Olive Chambery and (her son) Brook Chambery, operated a nursing home in Rochester, New York. Following a series of escalating disputes between Brook Chambery and regulatory authorities — disputes in which Brook Chambery sometimes at first prevailed— the Beeehwood facility lost its operating certificate and closed in 1999. The Cham-berys and the partnership appeal from a judgment entered on May 4, 2004 by the United States District Court for the Western District of New York (Larimer, /.), dismissing on summary judgment their complaint alleging under 42 U.S.C. § 1983 that certain employees of New York’s State Department of Health (“DOH”) and of the federal Health Care Financing Administration (“-HCFA”) arranged to revoke the state-required operating certificate for the facility [i] as retaliation for protected speech by which Brook Chambery challenged regulatory findings and rulings, in violation of the First and Fourteenth Amendments; and [ii] without notice and an opportunity for hearing, in violation of the Chamberys’ rights under the Fifth and Fourteenth Amendments. We affirm in part and in part vacate and remand.

BACKGROUND

Until it closed its doors in July 1999, Beeehwood Restorative Care Center was a skilled nursing facility operated by a partnership between Olive Chambery and her son Brook. Like all New York nursing homes, Beeehwood was regulated jointly by DOH and HCFA.

A

In 1994, Brook Chambery and DOH began clashing over regulatory matters. When DOH denied Beechwood’s application to add two short-term beds in 1994, Chambery challenged the denial in an Article 78 petition; DOH backed down and requested that the proceedings be dismissed. When DOH identified two D-level1 deficiencies in the course of federally-mandated surveys of the Beeehwood premises in 1995, Chambery challenged the deficiencies in an informal dispute resolution process afforded by federal regulation; DOH backed down and the deficiencies were withdrawn. Beechwood Restorative Care Center v. Leeds, 317 F.Supp.2d 248, 256 (W.D.N.Y.2004). In November 1996, three more D-level deficiencies were alleged by DOH, one of which was withdrawn after Chambery lodged a challenge. Id. In 1996, Chambery commenced an Article 78 proceeding challenging DOH’s procedures for the transfer and discharge of residents from nursing homes; the proceeding was ultimately resolved by a consent order in March 1997. Id. at 256. According to the Chamberys, this pattern of challenged deficiencies continued through 1999, escalating in frequency and seriousness. Id. at 257.

[150]*150Beginning in 1996, Chambery opened a new front. As the district court characterized it, Chambery “began sending ... a ‘voluminous’ series of letters and other papers to DOH and other state officials protesting various aspects of DOH’s policies and practices, and advocating a number of changes.” Id. at 256. Thus, from 1997 through 1999, Chambery engaged in a “campaign with DOH to either enforce or eliminate” a requirement that nursing home operators sign Medicaid Access Agreements in order to make major changes to their facilities. Id. at 257 (internal quotation omitted). Chambery contended that this requirement was onerous and unnecessary, and that it conferred competitive advantage on operators who signed the Agreements without intending to comply. Id. at 256.

In early 1999, surveys of Beechwood conducted by DOH identified new deficiencies, classified at the more serious K-level — ie., a pattern of violations constituting immediate jeopardy to residents. DOH recommended to HCFA that Beechwood be terminated as a Medicare and Medicaic provider unless those deficiencies were removed within eighteen days. New surveys, conducted by DOH on May 12, 1999 and again on June 14, 1999, identified no K-level deficiency, but charged deficiencies at the G-level — ie., actual harm with potential for more than minimal harm, though no immediate jeopardy. DOH later notified the partnership that HCFA was prepared to terminate Beechwood as a processor of Medicare and Medicaid — and HCFA ultimately did. For its part, DOH commenced an administrative hearing on June 23, 1999 to consider whether to revoke the facility’s operating certificate — a document required to operate a nursing home under New York law. See Spiegel v. Whalen, 44 N.Y.2d 745, 405 N.Y.S.2d 679, 376 N.E.2d 1323, 1324 (1978).

The thrust of the complaint in this action is that all these measures were taken by DOH to humiliate the Chamberys and ruin their business as punishment for Chambery’s exercise of his First Amendment right to stand up to the regulators, challenge them in proceedings, and criticize their requirements and procedures.

B

An administrative law judge (“ALJ”) conducted an evidentiary hearing on DOH’s claim that the partnership’s operating certificate should be revoked, and issued a 97-page report upholding most of the charges, finding that:

• Beechwood neglected some residents “in several significant aspects of care,” such as failing to notify a resident’s physician of significant changes in the resident’s condition.
• Beechwood had failed to timely notify a resident’s physician regarding a “potentially serious or life threatening illness .... ”
• Beechwood failed to fulfill its obligation to provide appropriate care and monitoring for a particular resident, and that “the record [wa]s devoid of documentation as to the last 5 hours of the resident’s life .... ”
• Beechwood failed to take adequate measures to prevent or treat some residents’ pressure sores.
• One Beechwood resident was “subjected, without any reasonable explanation, to an indwelling catheter in place for almost 9 days instead of Beechwood following a physician order of 3 to 4 days.”
• Beechwood took insufficient steps to safeguard residents who were at risk of falling.
. «“[A] number of Beechwood residents were not provided adequate pain con[151]*151trol,” and in several instances physicians’ orders were not carried out.

The ALJ rejected Beechwood’s allegations of improper motive, finding that (1) DOH “took numerous steps in its attempt to keep Beechwood open;” (2) Beechwood failed to take advantage of the opportunities afforded by DOH to rectify the problems with the facility; and (3) the “plans of correction” submitted by Beechwood to DOH consisted in large part of “denials of events that were found, attacks on the messengers (surveyors) and a barrage of information not relevant or consequential to the cited deficiencies,” while in fact “no correction was taking place.” The ALJ emphatically rejected Beechwood’s allegations of regulatory “bias or ill will.”

Consistent with the recommendation of the ALJ, DOH issued an order revoking Chambery’s operating certificate and imposing a $54,000 penalty.

The Chamberys inquired of DOH as to how Beechwood could be transferred as a nursing home to a third party, a transaction which would require transfer of the “establishment approval” that “gives the medical facility the right to exist.” Spiegel, 405 N.Y.S.2d 679, 376 N.E.2d at 1324. DOH’s general counsel (appellee Henry M.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Escobar v. Ludington
S.D. New York, 2024
Oehler v. Nietzel
W.D. New York, 2024
Nat'l Rifle Ass'n of Am. v. Cuomo
350 F. Supp. 3d 94 (N.D. New York, 2018)
Mangino v. Incorporated Village of Patchogue
808 F.3d 951 (Second Circuit, 2015)
Heller v. Bedford Central School District
144 F. Supp. 3d 596 (S.D. New York, 2015)
Houng v. Tatung Co.
499 B.R. 751 (C.D. California, 2013)
Boyle v. Barnstable Police Department
818 F. Supp. 2d 284 (D. Massachusetts, 2011)
Schmidt v. County of Nevada
808 F. Supp. 2d 1243 (E.D. California, 2011)
Bartels v. INCORPORATED VILLAGE OF LLOYD
751 F. Supp. 2d 387 (E.D. New York, 2010)
Leavell v. Illinois Department of Natural Resources
600 F.3d 798 (Seventh Circuit, 2010)
Puckett v. City of Glen Cove
631 F. Supp. 2d 226 (E.D. New York, 2009)
Walter v. Boehm
309 F. App'x 531 (Second Circuit, 2009)
Borum v. Village of Hempstead
590 F. Supp. 2d 376 (E.D. New York, 2008)
HILFIGER v. Alger
582 F. Supp. 2d 418 (W.D. New York, 2008)
Woodruff v. Mason
542 F.3d 545 (Seventh Circuit, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
436 F.3d 147, 2006 U.S. App. LEXIS 2323, 2006 WL 225827, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beechwood-restorative-care-center-v-leeds-ca2-2006.