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

New Jersey Superior Court Appellate Division·Decided July 5, 2019·No. A-4565-17T1·Unpublished

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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court."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.

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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

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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

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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.

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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. We apply the same standard for summary judgment as the trial court. RSI Bank v. Providence Mut. Fire Ins. Co., 234 N.J. 459, 472 (2018); Globe Motor Co. v. Igdalev, 225 N.J. 469, 479 (2016). A motion for summary judgment must be granted "if the pleadings, depositions, answers to interrogatories and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact challenged and that the

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moving party is entitled to a judgment or order as a matter of law." R. 4:46- 2(c).

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