FUTURE CARE CONSULTANTS, LLC VS. M.D. (L-1212-16, MONMOUTH COUNTY AND STATEWIDE)

CourtNew Jersey Superior Court Appellate Division
DecidedJuly 5, 2019
DocketA-4565-17T1
StatusUnpublished

This text of FUTURE CARE CONSULTANTS, LLC VS. M.D. (L-1212-16, MONMOUTH COUNTY AND STATEWIDE) (FUTURE CARE CONSULTANTS, LLC VS. M.D. (L-1212-16, MONMOUTH COUNTY AND STATEWIDE)) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
FUTURE CARE CONSULTANTS, LLC VS. M.D. (L-1212-16, MONMOUTH COUNTY AND STATEWIDE), (N.J. Ct. App. 2019).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-4565-17T1

FUTURE CARE CONSULTANTS, LLC,

Plaintiff-Appellant/ Cross-Respondent,

v.

M.D.,

Defendant-Respondent/ Cross-Appellant. __________________________

Submitted May 16, 2019 – Decided July 5, 2019

Before Judges Simonelli and Firko.

On appeal from the Superior Court of New Jersey, Law Division, Monmouth County, Docket No. L-1212-16.

SB2 Inc., attorneys for appellant/cross-respondent (Laurie M. Higgins, on the brief).

Rutgers Law Associates, attorneys for respondent/ cross-appellant (Gregory T. Gorman, on the brief).

PER CURIAM Plaintiff/Appellant Future Care Consultants and defendant/cross-

appellant M.D. appeal from orders entered on April 26, 2018, and May 9, 2018,

dismissing the complaint and counterclaim with prejudice. We affirm for the

following reasons.

I.

Defendant cared for her mother, B.S., and financially supported her from

October 2010 until B.S. was admitted to Liberty Royal Rehabilitation and

Healthcare Center (Liberty) in October 2013. Plaintiff serves as the fiscal agent

for Liberty. Prior to becoming B.S.'s power-of-attorney (POA) in May of 2013,

defendant transferred funds from a joint account B.S. owned with her husband,

J.S., into an account he could not access. Defendant claims she did this because

J.S. was exhibiting signs of dementia, and he was spending marital funds in a

reckless manner. Defendant claims she used the transferred money to pay for

B.S.'s personal needs and shelter expenses for B.S.'s condominium in Monmouth

County. After living on and off with defendant in Pennsylvania, B.S. returned

to her condominium in March 2013 and required the assistance of two

caretakers, who were hired by defendant. In October 2013, B.S. suffered serious

injuries after a fall, which resulted in a hospitalization followed by an admission

to Liberty.

A-4565-17T1 2 In her capacity as POA only and not as a personal guarantor, defendant

signed documents as requested by Liberty on behalf of B.S., including a direct

debit authorization agreement and a Social Security Administration

Notification. Defendant contends Liberty was aware that B.S. had not been

approved for Medicaid at the time, and that a Medicaid application had to be

processed. Defendant also provided Liberty with a $930 check for fees not

covered by B.S.'s social security benefits even though B.S.'s benefits had already

been assigned to Liberty. According to defendant, she never signed any

documents designating her as a personal guarantor or a responsible party in

respect of B.S.'s expenses at Liberty.

On November 27, 2014, B.S. was approved for Medicaid, but the

Monmouth County Division of Social Services imposed a 224-day period of

ineligibility for transferring $58,618.11 to defendant. On behalf of Liberty,

plaintiff sought reimbursement of the $58,618.11 balance due from defendant

based upon theories of conversion and breach of fiduciary duties. The complaint

alleged that defendant withdrew $37,085.47 from B.S.'s TD Bank account in

July 2010, and $29,955.79 from B.S.'s Santander Bank account in August 2010.

Plaintiff also alleged that on June 3, 2013, B.S. wrote a check for $1,067.28

from her Wells Fargo bank account to the Derby Township Tax Collector to pay

A-4565-17T1 3 defendant's real estate taxes. In total, plaintiff alleged that defendant received

$68,108.54 from B.S. and defendant could only prove $9,490.43 was spent on

her mother's care, thereby making the net amount of plaintiff's claim equal

$58,718.11. Defendant filed a counterclaim asserting she is not a guarantor of

B.S.'s debts, and seeking compensatory and punitive damages for violations of

the Nursing Home Responsibilities and Rights of Residents Act (NHA),

N.J.S.A. 30:13-1 to -17.

On April 25, 2018, defendant filed a motion in limine seeking to dismiss

plaintiff's complaint for lack of standing, which was granted on April 27, 2018.

The judge found there was no evidence of a contract between the parties "that

would designate . . . [d]efendant as a 'responsible party' to provide payment to

[p]laintiff from [B.S.'s] funds without incurring personal liability." The judge

further found that if such a contract or agreement existed, plaintiff's only

recourse would have been against defendant in her capacity as POA, because the

statute "explicitly prohibits a nursing facility from requiring a third party

guarantee of payment to the facility."

On April 30, 2018, plaintiff filed a motion for summary judgment seeking

to dismiss defendant's counterclaim insofar as it sought an award of "actual and

punitive damages." Plaintiff alleged that "[d]efendant failed to return the

A-4565-17T1 4 transferred funds, and she failed to contribute any funds to the cost of [B.S.'s]

skilled nursing care at [Liberty]." On May 4, 2018, plaintiff's motion to dismiss

was denied because the judge found "the language of plaintiff's complaint raised

a question as to whether plaintiff sought to have the [c]ourt declare [defendant]

personally responsible for [B.S.'s] outstanding balance." The judge determined

defendant met her burden under Rule 4:46-2 to support her counterclaim by

submitting sufficient evidence that plaintiff violated the NHA. The judge also

found that plaintiff failed to bring claims against defendant in her capacity as

B.S.'s POA, and failed to establish "evidence of a contract or agreement that

would allow . . . plaintiff to proceed against her as a fiduciary."

After conducting a supplemental review of the motion papers and hearing

oral argument on May 4 and May 8, 2018, the judge sua sponte reconsidered

plaintiff's summary judgment motion and determined that he had "erroneously

taken a broad approach" to the interpretation of N.J.S.A. 30:13-3.1(a)(2). The

judge stated:

It is undisputed that [p]laintiff and [d]efendant did not execute any form of contract or agreement that would satisfy the exception in N.J.S.A. 30:13-3.1(a)(2). Thus, it follows that no third party guarantee of payment was required. The language in N.J.S.A. 30:13-3.1(a)(2) explicitly prohibits third party guarantees, but does not offer any guidance as to what a third party guarantee of payment entails.

A-4565-17T1 5 Because there was no written agreement between the parties designating

defendant as a "responsible party" on behalf of B.S., there was no statutory

violation, thereby warranting dismissal of defendant's counterclaim with

prejudice because the judge found there was "no genuine issue of material fact

requiring submission to a jury."

On appeal, plaintiff argues the judge erred in dismissing its complaint

based upon a lack of standing. In her cross-appeal, defendant argues the judge

correctly dismissed the complaint but erred in summarily dismissing her

counterclaim.

II.

Plaintiff's Appeal

Plaintiff argues the judge improperly dismissed its complaint for lack of

standing.

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FUTURE CARE CONSULTANTS, LLC VS. M.D. (L-1212-16, MONMOUTH COUNTY AND STATEWIDE), Counsel Stack Legal Research, https://law.counselstack.com/opinion/future-care-consultants-llc-vs-md-l-1212-16-monmouth-county-and-njsuperctappdiv-2019.