Corley v. Rosewood Care Center, Inc. of Peoria

152 F. Supp. 2d 1099, 2001 U.S. Dist. LEXIS 9792, 2001 WL 884077
CourtDistrict Court, C.D. Illinois
DecidedJuly 13, 2001
Docket95-3350
StatusPublished
Cited by2 cases

This text of 152 F. Supp. 2d 1099 (Corley v. Rosewood Care Center, Inc. of Peoria) is published on Counsel Stack Legal Research, covering District Court, C.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Corley v. Rosewood Care Center, Inc. of Peoria, 152 F. Supp. 2d 1099, 2001 U.S. Dist. LEXIS 9792, 2001 WL 884077 (C.D. Ill. 2001).

Opinion

ORDER

SCOTT, District Judge.

This matter comes before the Court on cross motions for summary judgment. The Plaintiff Robert Corley alleged that he and his mother Vera Corley, deceased, were victims of racketeering in violation of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1961— 68. For the reasons set forth below, the Court grants the Defendants’ Second Motion for Summary Judgment. Corley has failed to present evidence that would, if believed by a jury, establish a pattern of racketeering that injured him or his late mother. He, therefore, cannot recover on his RICO claims.

FACTS

A. Defendants’ Business Operations

Since 1987, individual Defendants Larry Vander Maten and Darrell Hoefling have directly or indirectly owned and operated a network of corporations and other entities (some of which constitute the remaining Defendants in this case), that own and operate nursing homes. The first home opened in Swansea, Illinois, in 1987. The combination of entities now operates fourteen homes. Each home uses the name Rosewood Care Center, One holding company owns each home’s separate operating corporation. Each home uses the same management company. Each home’s ownership and operation are organized through the same system of leases, management contracts and other agreements. Since 1993, patient census and billing for all homes have been centralized. Each home transfers revenues to the same central bank account. Each home also uses the same sales brochure, and the advertising for all homes is purchased centrally by the single management company.

B. Corley’s Dealings with Defendants

In October 1989, Robert Corley visited the Rosewood Care Center Inc. of Peoria. The Peoria home had recently opened in June 1989. Robert Corley looked at the home as a possible place to care for his mother Vera Corley. Peoria Rosewood employee Valerie Mushrush showed him around the home. The home had three room choices: a private suite; private room; and semi-private room which had two beds. Robert Corley 1 said that Mushrush emphasized the suites. The suite was larger than a regular private room. The suite cost $12 per day more than a semi-private room: the private suite was $70 a day; the semi-private room was $58 per day. Corley said that he was led to believe that the price of the private suite would stay in line with the other rooms. Mushrush told Corley that his mother could bring her own furniture from home. She told him that residents have a choice of two entrees at every meal. He also was led to believe that the home provided a high-quality of care for residents.

Mushrush stated in her deposition that she was told to market private suites. She also states that she did not think that prices would increase for one year. She communicated that belief to some customers, although she did not remember whether she told this to Corley.

Based on his inspection of the home and Mushrush’s representations, Corley decided to place his mother in the home in a private suite. 2 Corley signed a contract *1103 for a private suite at a base rate of $70 per day. 3 The contract said, “We do not guarantee your accommodations will remain private throughout your stay with us.” Corley and Mushrush initialed a change in the contract which struck the following sentence from the contract, “For-administrative or other reasons, we may convert a-n-y- private reom-to a semi-private room upen-days prior-written notice-,--with an appropriate adjustment in yoar-base rate.” The contract also said the home could raise the base rate at any time on 30 days notice.

Defendants also advertised a guarantee of continuing care in 1989 in Peoria. The advertising indicated that if a resident’s money ran out, the home would continue to provide the resident with the same level of care. The continuing care would be paid by Medicaid. Contrary to the advertising, the form residential contract at the Peoria home stated that the home was not qualified to accept Medicaid patients, and there was no guarantee that it would be qualified in the future. The contract further said that continuing care could only be provided if the home qualified for Medicaid. Defendants advertised the guarantee of care in advertising that marketed jointly the Peoria home and the home that the Defendants opened at about the same time in East Peoria, Illinois.

Robert Corley was not concerned about the guarantee of continuing care when he decided to place his mother in the Peoria facility. He believed she had ample funds to pay for her own care. Corley stated that the guarantee of continuing care, “was a plus. It might have been 5/10 of one percent of the good things about Rosewood.” Corley August 15 and 16, 1994, Deposition at 240. Later in the same deposition, he stated that the guarantee of continuing care, “was not a factor in the decision at all. It was a plus_I didn’t give it that much thought or that much consideration.” Id. at 254. Corley also stated that he understood that the home was not qualified for Medicaid at the time he signed the contract.

Vera Corley moved into the Peoria home on or about October 25, 1989. She moved her personal furniture into the suite. She paid to install her own carpeting and a single telephone line.

On December 14, 1989, about sixty days after Vera Corley moved into the home, the home administrator wrote Robert Cor-ley to suggest that he move his mother to a regular private room or a semi-private room. The letter said that the base rate on private suites would go up January, 1990, from $70 per day to $84 per day. This was a 20 percent increase. Corley complained by letter dated December 31, 1989. He said that he felt that he was the victim of a classic bait and switch. On January 5, 1990, Vander Maten telephoned Corley in response to the complaint. After the telephone conversation, the rate increase for his mother was delayed until March 1, 1990. Two more price increases followed in 1990. The base rate for all rooms rose $4 per day on March 30, 1990; Vera Corley’s room rate then was $88 per day. The rate for the private suite rose to $122 per day on October 24, 1990. This was a 74 percent increase over the original rate of $70 per day. The base rate for a semi-private room rose only 13.7 percent for the same period, from $58 per day to $66 per day.

Corley complained to the Illinois Attorney General. Attorney Stephen Ukman represented the Defendants at that time. He responded to the complaint on behalf *1104 of the Peoria home by letter dated December 18, 1990. Vander Maten approved the letter before it was sent. 4 Ukman explained that the Peoria Center was licensed by Illinois for 120 beds. The rooms under the license were either single-bed rooms or double-bed rooms. He stated,

When Rosewood Care Center opened in June, 1989, a number of double-bed rooms were equipped with only one bed and designated as “suites”. Mr.

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Related

Corley v. Rosewood Care Center, Inc. of Peoria
388 F.3d 990 (Seventh Circuit, 2004)
Corley v. Rosewood Care Center
388 F.3d 990 (Seventh Circuit, 2004)

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Bluebook (online)
152 F. Supp. 2d 1099, 2001 U.S. Dist. LEXIS 9792, 2001 WL 884077, Counsel Stack Legal Research, https://law.counselstack.com/opinion/corley-v-rosewood-care-center-inc-of-peoria-ilcd-2001.