In 1985, Juanita Randall executed a maintenance trust that named her as the income beneficiary and her son, Robert Randall, as the trustee and residual beneficiary. The trust principal consisted of Mrs. Randall''s home, valued at $30,000, and $100,000 in mutual funds. Following an accident that required Mrs. Randall''s hospitalization, Robert placed his mother in the Americana Healthcare Center. Robert completed and signed all of the necessary documents under a power of attorney from his mother and made a two-month advance payment from Mrs. Randall''s checking account. He also listed himself as the person who should be sent Americana''s monthly statements.
When Robert applied for Medicaid benefits for his mother, the application was denied by the South Dakota Department of Social Services on the ground that Mrs. Randall had not exhausted her assets. Her sole assets were the house and the mutual funds that had been conveyed to the trust. By the time Americana learned of the rejected Medicaid application, Mrs. Randall''s bill was already two months delinquent. Americana notified Robert on several occasions that his mother''s bills were unpaid and asked that she be removed from the facility. Nevertheless, Mrs. Randall remained at Americana until her death, amassing a $36,772 bill. Prior to his mother''s death, Robert filed for bankruptcy on her behalf. Accordingly both she and Robert, as legal guardian, were discharged from the Americana bill. Americana filed suit to collect the unpaid bill from Randall individually.
The trial court found that Robert was not contractually liable for the bill, but allowed Americana to orally amend its complaint to include a claim based on SDCL 25-7-27, which requires an adult child to provide support to his or her parents when they have the ability to do so. The court then found for Americana on the SDCL 25-7-27 claim. Robert appealed, arguing that the trial court abused its discretion in allowing Americana to amend its complaint, that SDCL 25-7-27 violates his right to equal protection and due process, and that the nursing home costs were unreasonable.
The court rules that Robert is liable for his mother''s nursing home bill under SDCL 25-7-27. The court finds that Robert was not prejudiced by the trial court''s decision allowing Americana to amend its complaint because he was aware prior to trial that the nursing home would make a claim under SDCL 25-7-27. Therefore, since Robert received the trust funds upon his mother''s death and could afford to pay his mother''s bills, the court holds that the trial court acted appropriately in holding him liable. The court also rules that Robert''s rights to equal protection and due process were not violated and that the trial court''s award was reasonable.
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