A Connecticut trial court rules that an attorney who admitted his mother to a nursing home, signed the admissions agreement as a responsible party, and then transferred money to himself and did not provide information for her Medicaid application is liable to the nursing home for his mother's unpaid debt up to the amount of income that was in his control. Athena Holdings, LLC v. Marcus (Conn. Super. Ct., No. DBDCV106003581, April 23, 2013).
Attorney Jan Marcus admitted his mother to a nursing home and signed the admission agreement as the responsible party. The agreement stated that the responsible party did not personally guarantee payment, but it did require the responsible party to provide all information necessary to apply for Medicaid and to use the resident's funds to pay for care. Mr. Marcus did not turn over his mother's Social Security payments to the nursing home and he transferred his mother's funds to himself. He applied for Medicaid on behalf of his mother, but the application was denied because he did not provide enough information.
After Mr. Marcus's mother died, the nursing home sued him for breach of contract. It sought $47,444 in costs, arguing Mr. Marcus should be responsible for the full cost of his mother's care.
The Connecticut Superior Court enters judgment for the nursing home in the amount of $15,778. The court rules that while Mr. Marcus may be liable for his mother's income and assets that were in his control and that were not transferred to the nursing home, Mr. Marcus is not liable for the remaining balance of his mother's debt because the admissions agreement clearly states that the responsible party does not guarantee payment of debt.
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