Heritage Housing Development, Inc. v. Carr

199 S.W.3d 560, 2006 Tex. App. LEXIS 6930, 2006 WL 2192564
CourtCourt of Appeals of Texas
DecidedAugust 3, 2006
Docket01-04-00096-CV
StatusPublished
Cited by20 cases

This text of 199 S.W.3d 560 (Heritage Housing Development, Inc. v. Carr) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heritage Housing Development, Inc. v. Carr, 199 S.W.3d 560, 2006 Tex. App. LEXIS 6930, 2006 WL 2192564 (Tex. Ct. App. 2006).

Opinion

OPINION

JANE BLAND, Justice.

Velma Carr brought this survival action for the negligent nursing home care and treatment of her husband, seeking dam *563 ages against the nursing home, Heritage Geriatric Housing Development VIH, Inc. d/b/a Heritage Sam Houston Gardens (“Houston Gardens”), the nursing home’s parent corporation, Heritage Housing Development, Inc. f/k/a Heritage Geriatric Housing Development, Inc. (“HHD”), and an administrator, a director of nursing, and three treatment nurses. A jury found the nursing home, the nursing home’s parent corporation, and three of the nursing home’s employees negligent in the care of Mr. Carr. The nursing home and its parent corporation appeal the judgment, claiming — among other things — that the evidence is legally insufficient to support a verdict based on vicarious liability against both corporate entities. We hold that the evidence is legally insufficient to support a verdict against the parent corporation and reverse the judgment against it. We further hold that the evidence is legally sufficient to support the claim for negligence against the nursing home. Because it is probable that including the parent corporation in the negligence charge affected the jury’s apportionment of liability and damages as to the nursing home and the remaining defendants, we remand the case for a new trial on the negligence claim against the nursing home. We withdraw our earlier opinion dated May 25, 2006 and issue this opinion in its stead. Our disposition remains unchanged.

I. BACKGROUND

A. Mr. Carr’s Condition

In February 1999, Raymond Carr was admitted to Houston Gardens, a nursing home representing that it specialized in caring for residents with Alzheimer’s disease. Mr. Carr’s medical records indicate that at the time of his admission he had been suffering from Alzheimer’s disease for about ten years, and that his cognitive skills had deteriorated in ways are typical of an Alzheimer’s patient. He was unable to provide for his own personal hygiene and was unsteady in walking. Records also indicate he was well groomed, exhibited good hygiene, weighed 190 pounds, and had no signs of pressure sores or contrac-tures. Subsequent to Mr. Carr’s admission to Houston Gardens, his health seriously deteriorated. Mrs. Carr introduced evidence at trial — including medical records and testimony from the nursing home staff — that her husband endured substandard care from understaffed and under-trained employees at Houston Gardens. Among other evidence, Carr proffered exhibits and testimony that the Houston Gardens staff failed to re-position her husband, provide adequate incontinent care, administer range of motion exercises, maintain adequate nutrition, and provide adequate pain medication for a dislocated shoulder and pressure sores that he sustained while a resident of the nursing home. After residing at Houston Gardens for just over fifteen months, Mr. Carr was admitted to Golden Age nursing home, where he resided until his death two years later.

B. The Entities Involved

Houston Gardens is a nursing home certified by the Texas Department of Human Services as an Alzheimer’s facility, and is operated by Heritage Geriatric Housing Development VIII, Inc., a corporate entity that held the state license for the operation of the nursing home. 1 HHD is the *564 parent company of Houston Gardens. A third entity, Health Care Holdings, LLC, managed the facility, pursuant to a management contract with Houston Gardens, for most of the time Houston Gardens cared for Mr. Carr. Carr nonsuited Health Care Holdings at the close of her case-in-chief.

Houston Gardens thus is the state licensed health care provider and is the entity that entered into a management agreement for Health Care Holdings to manage the personnel and make hiring decisions at the nursing home. Though Houston Gardens did not produce the majority of payroll checks or time cards for the period Mr. Carr was a resident, one employee’s file contains a manual payroll check listing Houston Gardens as the employer. During trial, the witnesses represented they were employed at Houston Gardens. 2 Certain employment applications, however, include HHD’s name on them and include the hourly pay rate, the employee’s position, and the shift the employee was to work. Houston Gardens used HHD’s manuals on nursing home policies and procedures, and required employees to sign various acknowledgment forms that contained HHD’s name at the top.

C. The Jury’s Findings

The jury found for Carr, awarding a total of $2,204,000 in actual damages. Counsel for HHD moved for an instructed verdict, objecting to HHD’s submission to the jury on the basis that no evidence existed to support recovery against it on a theory of vicarious liability. In particular, HHD argued- that employment applications listing HHD’s name constituted legally insufficient evidence that it controlled the details of patient care at Houston Gardens. The jury found HHD hable for 45% of the damages, and Houston Gardens liable for 40%. The jury apportioned the remaining liability among the individual defendants, each of whom settled with Carr during the pendency of this appeal. The jury also awarded exemplary damages, having made affirmative findings of malice on the part of the defendants based upon clear and convincing evidence. The defendants moved for a judgment notwithstanding the verdict and a new trial. The trial court denied the motions and rendered a judgment based on the jury’s verdict.

II. HHD’S APPEAL

On appeal, HHD presents six arguments, including that the trial court erred in entering judgment against it because the evidence is legally and factually insufficient to prove that it is vicariously hable for the conduct of the nursing home employees. Carr responds that HHD is vicariously hable for the negligent treatment provided by the nursing home because it was the employer of the nursing home staff and possessed the right to control the staff. On appeal, Carr denies any claims against HHD based on piercing the corporate veil or on any theory of direct negligence (for example, insufficient budgeting). Thus, the limited issue before this court is whether the evidence is legally and factual *565 ly sufficient to support the judgment of vicarious liability against HHD on the basis that it employed the nursing home staff who provided negligent health care.

A. Legal Sufficiency — Standard of Review 3

To demonstrate legal insufficiency on appeal, a litigant that did not bear the burden of proof at trial must show that there is no evidence to support the contested finding. Croucher v. Croucher, 660 S.W.2d 55, 58 (Tex.1983); Beard v. Beard, 49 S.W.3d 40, 55 (Tex.App.-Waco 2001, pet. denied).

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Cite This Page — Counsel Stack

Bluebook (online)
199 S.W.3d 560, 2006 Tex. App. LEXIS 6930, 2006 WL 2192564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heritage-housing-development-inc-v-carr-texapp-2006.