A New York trial court rules that a son who received his mother’s assets without consideration, leaving her insolvent, is liable for her unpaid nursing home costs. Amsterdam Nursing Home Corp. (1992) v. Lynch (NY Sup. Ct., No. 154028/2018, June 7,2019)
Denise Lynch entered a nursing home operated by Amsterdam Nursing Home Corporation in 2013. One year later, she transferred all of her assets to her son, Sean Lynch, and subsequently stopped paying for room, board and the skilled nursing care services she was receiving.
The nursing home filed a complaint for unpaid nursing home costs of $213,909.02, alleging claims against Ms. Lynch for services rendered and unjust enrichment; and against Mr. Lynch for fraud because the asset transfers to him without consideration left his mother insolvent and unable to pay her creditors. Despite effective service on both mother and son, neither responded to the complaint and the nursing home motioned for default judgment.
The Supreme Court of New York, NY County, a trial court, grants the motion for default judgment. The court finds that the nursing home established a factual basis for its claim against Ms. Lynch for unjust enrichment because she received the nursing home services without paying for them, and against her son because he received his mother’s assets without any consideration and leaving her insolvent, giving rise to an inference of an intent to defraud.
For the full text of this decision, go to: https://law.justia.com/cases/new-york/other-courts/2019/2019-ny-slip-op-31596-u.html
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