No Attorneys' Fees for Nursing Home Resident's Son Who Lost a Breach of Contract Claim

A Connecticut appeals court rules that the son of a nursing home resident who lost a breach of contract claim brought by the nursing home, but successfully defended against two other claims, is not entitled to attorneys' fees because the breach of contract claim is the only claim in which consumers are entitled to attorneys' fees. Athena Holdings, LLC v. Marcus (Conn. Ct. App., No. 35979, Oct. 13, 2015).

Jan Marcus admitted his mother to a nursing home and signed as the "responsible party." As the responsible party, Mr. Marcus agreed to pay for the nursing home out of his mother's assets and promptly apply for Medicaid on his mother's behalf. Mr. Marcus's mother transferred assets to him, and Mr. Marcus failed to pay the nursing home.

The nursing home sued Mr. Marcus for $47,444 in unpaid fees based on breach of contract, promissory estoppel, and negligence. The trial court ruled in favor of the nursing home on the breach of contract claim and awarded the nursing home $15,778. It ruled in favor of Mr. Marcus on the promissory estoppel and negligence claims. Mr. Marcus asked for attorneys' fees, arguing that he was the prevailing party on two of the three claims. State law provides a right to attorneys' fees to a consumer who successfully defends an action based on a contract. The trial court denied Mr. Marcus's request, and Mr. Marcus appealed. 

The Connecticut Court of Appeals affirms, holding that Mr. Marcus is not the prevailing party, so he is not entitled to attorneys' fees. The court declines to interpret the attorneys' fee statute to provide fees to someone who "successfully defends against two alternative theories of liability set forth in the complaint, but loses on the breach of contract count, the only count 'based upon the contract.'"

For the full text of this decision, go to: https://www.jud.ct.gov/external/supapp/Cases/AROap/Ap160/160AP470.pdf

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