Scampone, R. v. Grane Healthcare Co.

169 A.3d 600
CourtSuperior Court of Pennsylvania
DecidedAugust 8, 2017
DocketScampone, R. v. Grane Healthcare Co. No. 716 WDA 2015
StatusPublished
Cited by33 cases

This text of 169 A.3d 600 (Scampone, R. v. Grane Healthcare Co.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scampone, R. v. Grane Healthcare Co., 169 A.3d 600 (Pa. Ct. App. 2017).

Opinion

OPINION BY

BOWES, J.:

In this appeal, Richard Seampone, in his capacity as executor of the estate of Madeline Seampone (“Mr. Seampone” or the “Plaintiff’), challenges a number of rulings that the trial court rendered in this longstanding nursing home liability action. After close review, we reverse and remand for a new trial.

This action has been to this Court twice, the Supreme Court once, and the trial court twice. To clarify the issues currently before us, it is necessary to repeat the factual and procedural background of the case.

I. PRIOR PROCEEDINGS

A. FIRST TRIAL

On September 22, 2005, Mr. Seampone instituted this action against Grane Healthcare Company (“Grane”), Grane Associates, L.P., Highland Park Care Center, LLC d/b/a/ Highland Park Care Center (“Highland”), Trebro, Inc., and Ross J. Ness, who was the general partner of Grane Associates, L.P. 1 Highland was the licensed owner and operator of Highland Park Care Center (the “nursing home”), and Grane was Highland’s parent company. Grane also managed the nursing home pursuant to a written agreement with Highland.

From February 5, 1998, through January 30, 2004, Mr. Scampone’s decedent, his mother Madeline, was a resident of the nursing home. On December 15, 2003, Madeline was diagnosed with a urinary tract infection (“UTI”), hospitalized, treated, and returned to the nursing home on December 18, 2003, in good condition. Madeline was re-admitted to the hospital on January 30, 2004, and was diagnosed with another UTI as well as dehydration, malnutrition, and bed sores. Madeline died of a heart attack at the age of ninety-four on February 9, 2004.

In this lawsuit, Mr. Seampone averred that substandard care rendered by Highland and Grane caused Madeline’s dehydration, malnutrition, and second UTI and those conditions lead to her death. Punitive damages were also demanded. Mr. Scam-pone asserted that Grane and Highland were liable based upon theories of both vicarious liability for the actions of their employees/agents and for direct corporate liability. Vicarious liability as to Highland was based upon its employees’ failure to deliver food, water, medicine, and proper medical care to Madeline from December 18, 2003 to January 30, 2004. Grane’s vicarious liability was premised upon the fact that some of Grane’s employees were *606 directly involved in overseeing the care delivered to patients of the nursing home.

Direct corporate negligence was adopted by our Supreme Court as a basis for liability against a hospital in Thompson v. Nason Hospital, 527 Pa. 330, 591 A.2d 703 (1991). 2 In the present case, direct corporate liability was premised upon Mr. Scampone’s allegations that the nursing home was chronically understaffed, Highland and Grane knew about and failed to correct the problem, and the understaffing rendered Highland employees incapable of providing appropriate care to the nursing home residents, including Madeline. Thus, Mr. Scampone averred a breach of the duty imposed on a corporation by Thompson to formulate, adopt, and enforce adequate rules and policies to ensure quality care for the patients of the nursing home.

In 2007, the case proceeded to a jury trial, where Grane was granted a compulsory nonsuit at the close of the Plaintiffs evidence. Thereafter, only Highland remained as a defendant. The trial court refused to submit the issue of punitive damages to the jury, but permitted the Plaintiffs cause of action for direct corporate and vicarious liability to be submitted to the jury against Highland. The jury determined that Highland had both vicarious and direct corporate liability for Madeline’s death. 3 It awarded Mr. Scampone compensatory damages in the amount of $193,500.

B. DIRECT APPEAL TO SUPERIOR COURT

(“Scampone I”)

Mr. Scampone appealed, and Highland cross-appealed. Therein, Mr. Scampone raised, inter alia, the following issues;

I. Did the trial court commit reversible error when it granted a motion for compulsory non-suit in favor of Defendant/Appellee Highland Park Care Center, LLC, d/b/a Highland Park Care Center (“Highland Park”) on Plaintiffs claim for punitive damages?
II. Did the trial court commit reversible error when it granted a motion for compulsory non-suit in favor of Defendant/Appellee Grane Healthcare Company (“Grane Healthcare”) on all of Plaintiffs claims, including his claim for punitive damages?

*607 Scampone v. Grane Healthcare Co., 11 A.3d 967, 972-73 (Pa.Super. 2010) (“Scampone I”).

Answering these questions affirmatively, we ruled that Mr. Scampone’s evidence precluded the grant of nonsuit against him as to Grane. We concluded that Grane was subject to vicarious liability for the actions of certain of its employees, and that Grane was subject to direct corporate liability due to the level of control it exercised over the management of the nursing home. We also held that Mr. Scampone had presented sufficient proof to establish a causal connection between the persistent under-staffing at the nursing home facility and Madeline’s death since the evidence supported a finding that the understaffing was a contributing factor in Highland employees’ inability to deliver food, water, medicine, and medical care to Highland’s patients, who included Madeline.

As to Mr. Scampone’s punitive damages issue, which was premised upon actions of both Grane and Highland employees, we opined that there was sufficient evidence to establish that Grane and Highland were subject to liability for punitive damages, and we reversed the trial court’s refusal to submit the question of punitive damages to the jury. Thus, we remanded for a new trial against Grane for both compensatory and punitive damages, and a new trial against Highland as to punitive damages.

In Highland’s cross-appeal, Highland did not contest the jury’s finding that it was vicariously liable, but it argued that a nursing home could not be subject to direct corporate liability under Thompson. We ruled that a cause of action for direct corporate liability could be asserted against a nursing home because a nursing home offered comprehensive medical care to its patients substantially similar to the level of care rendered by hospitals. We thus affirmed the compensatory damages award against Highland.

C. SUPREME COURT DECISION

(“Scampone II”)

Grane and Highland filed petitions for allowance of appeal solely on the question of whether they could be found subject to direct corporate liability under Thompson. Our Supreme Court accepted allowance of appeal as to, “Whether the Superior Court erred in applying the corporate negligence theory, initially adopted by this Court in Thompson v. Nason Hospital, 527 Pa.

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Bluebook (online)
169 A.3d 600, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scampone-r-v-grane-healthcare-co-pasuperct-2017.