A Kansas court of appeals holds that a nursing home's claim against a son who signed a promissory note, agreeing to pay for his mother's unpaid nursing home bill, cannot be dismissed until the court determines if the son voluntarily consented to the third-party guarantee. Pioneer Ridge Nursing Facility Operations, L.L.C. v. Ermey (Kan. Ct. App., No. 100,095, March 6, 2009).
Randy Ermey admitted his mother, Neva, to a nursing home. Mrs. Ermey applied for Medicaid, but while her eligibility was pending, she incurred a bill. The nursing home issued a discharge notice against Mrs. Ermey, but rescinded the discharge once she became Medicaid eligible. Mr. Ermey signed a promissory note, agreeing to pay the outstanding bill.
After Mrs. Ermey died, the nursing home sued Mr. Ermey to collect on the promissory note. Mr. Ermey claimed he signed the promissory note as a condition of his mother continuing to stay at the nursing home in violation of the Nursing Home Reform Act. The trial court granted Mr. Ermey's motion to dismiss, holding that the promissory note violated federal law and lacked consideration. The nursing home appealed, arguing the note was signed after the nursing home had rescinded the discharge.
The Kansas Court of Appeals reverses, holding that there is a question of fact as to whether Mr. Ermey voluntarily signed the promissory note, so a motion to dismiss was inappropriate. According to the court, although Kansas has not addressed the issue yet, a third-party guarantee of payment may be acceptable if it is voluntarily given.
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