Melmark, Inc. v. Schutt by and Through Schutt

206 A.3d 1096
CourtSupreme Court of Pennsylvania
DecidedApril 26, 2019
Docket78 MAP 2017
StatusPublished
Cited by26 cases

This text of 206 A.3d 1096 (Melmark, Inc. v. Schutt by and Through Schutt) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Melmark, Inc. v. Schutt by and Through Schutt, 206 A.3d 1096 (Pa. 2019).

Opinion

SAYLOR, C.J., BAER, TODD, DONOHUE, DOUGHERTY, WECHT, MUNDY, JJ.

OPINION

CHIEF JUSTICE SAYLOR

This matter arises due to the failure of a New Jersey couple to pay for their adult son's stay at a Pennsylvania nonprofit residential facility. It primarily raises a choice-of-law issue in relation to the two states' filial-support statutes.

I. Background

Alexander Schutt ("Alex"), born in 1986, is an individual with severe mental and physical disabilities, including autism and *1099 obsessive-compulsive disorder. He exhibits maladaptive behaviors such as extreme aggression, noncompliance, elopement, and pica (eating non-food items). Alex cannot care for himself and requires continual one-on-one assistance with the activities of daily life including toileting, bathing, medication management, recognizing dangerous situations, behavioral issues, and mobility issues. He suffers from grand mal seizures during which oxygen is often administered. He has received Medicaid and Social Security Disability benefits since 2004.

Alex's parents, appellees Dr. Clarence Schutt and Barbara Schutt ("Parents"), born in 1945 and 1947, respectively, live in Princeton, New Jersey. They were appointed as Alex's guardians in 2004. They have both been at least 55 years old at all relevant times. There is no suggestion that they lack the ability to support Alex. 1

In 2001, Alex was placed at Melmark, a non-profit residential care facility for intellectually and physically disabled persons, located in Delaware County, Pennsylvania. Melmark is owned and operated by appellant Melmark, Inc., a Pennsylvania nonprofit corporation. During his stay there, Alex received residential, educational, and vocational services. While Alex was under 21, his costs were paid by the Princeton Regional School District. Starting in July 2007, Alex was no longer entitled to school district funding. At that point, responsibility for the cost of Alex's care shifted to the New Jersey Department of Human Services, Division of Developmental Disabilities ("NJ-DDD"). Also at that time, Alex began attending Melmark's adult residential program, which included residential and vocational services.

In July 2011, NJ-DDD informed Parents that Alex would have to be relocated on August 7, 2011, because the agency disapproved Melmark's rates. NJ-DDD stated that Parents, as guardians, should pick Alex up at Melmark and NJ-DDD would provide him with an emergency placement pursuant to New Jersey law. Parents did not retrieve Alex from Melmark on that date, however. Thereafter, in December 2011, NJ-DDD wrote to Parents, stating it would fund Alex's residence on a permanent basis at an identified facility in New Jersey beginning on January 16, 2012. Unsatisfied with this offer, Parents asked NJ-DDD instead to continue paying for Alex's care at Melmark. NJ-DDD disapproved that request and advised Parents it would cease paying Melmark as of December 31, 2011. Parents lodged an administrative appeal in New Jersey in an effort to keep Alex at Melmark. NJ-DDD granted extensions of time to allow for Alex's transfer to a New Jersey facility, but the agency ultimately informed Parents it would make no further payments to Melmark after March 31, 2012.

When that date arrived, neither Parents nor NJ-DDD accepted custody of Alex, leaving Melmark to care for him uncompensated. Nevertheless, Parents continued to pay for off-campus speech classes, art classes, and equestrian therapy for Alex, all of which took place in Pennsylvania. In addition, Parents continued to visit Alex at Melmark almost every weekend even after NJ-DDD's payments ceased. See, e.g. , N.T. July 21, 2014, at 23 (reflecting Mrs. Schutt's deposition testimony to this effect).

In August 2012, Parents filed an "Application for Emergent Relief" in New Jersey, requesting restoration of New Jersey state funding for Alex's care at Melmark *1100 pending the outcome of their administrative appeal. Meanwhile, Melmark filed a petition in the Delaware County common pleas court, requesting a determination that Alex needed placement for residential care as an incapacitated person. See 50 P.S. § 4406 ; 55 Pa. Code § 6250.11 . Parents appeared and opposed Melmark's petition, representing that Parents and NJ-DDD were involved in a mere funding dispute over Alex's care. The court denied relief on that basis, noting that the funding dispute might be resolved at a New Jersey hearing scheduled for January 2013 concerning Parents' administrative appeal. See In re Involuntary Commitment of Alexander Schutt , No. 456 of 2012, slip op . at 4 (C.P. Delaware Nov. 15, 2012), appeal dismissed as moot , In re A.S. , No. 3365 EDA 2012, 2013 WL 11255021 (Pa. Super. Aug. 23, 2013).

Thereafter, on December 21, 2012, Parents voluntarily withdrew their New Jersey administrative appeal, causing the January 2013 hearing to be cancelled. This development eliminated any opportunity Parents had previously alleged was available to obtain an adjudication requiring NJ-DDD to pay Melmark for its services to Alex. 2

Alex continued to live at Melmark until May 15, 2013, when Melmark transported him to a crisis center in New Jersey due to his increasingly aggressive behaviors. 3 Thus, Melmark provided uncompensated residential and day program services to Alex from April 1, 2012, to May 14, 2013. Melmark and the trial court calculated the cost of these services at approximately $ 205,000.00.

Melmark filed a complaint in the Delaware County Court of Common Pleas, seeking recovery of the cost of services as outlined above. In Counts I and II of the complaint, Melmark asserted equitable claims under the doctrines of unjust enrichment and quantum meruit . In Count III, Melmark included a cause of action based on Pennsylvania's common law and filial support statute. That statute provides:

(a) Liability.-
(1) Except as set forth in paragraph (2), all of the following individuals have the responsibility to care for and maintain or financially assist an indigent person, regardless of whether the indigent person is a public charge: (i) The spouse of the indigent person. (ii) A child of the indigent person. (iii) A parent of the indigent person.
(2) Paragraph (1) does not apply in any of the following cases: (i) If an individual does not have sufficient financial ability to support the indigent person....
(b) Amount.-
(1) [With certain exceptions], the amount of liability shall be set by the court in the judicial district in which the indigent person resides.
* * *

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Bluebook (online)
206 A.3d 1096, Counsel Stack Legal Research, https://law.counselstack.com/opinion/melmark-inc-v-schutt-by-and-through-schutt-pa-2019.