California Nursing Home Verdict Will Stand: Motion for Mistrial Denied
I blogged a while back about an unprecedented nursing home verdict in California. A Humboldt County Jury awarded over $670,000,000 in damages against Skilled HealthCare for its unlawful understaffing of 22 California Nursing Homes. Not surprisingly, both the corporate chain and nursing home groups have called the verdict appalling and unjustifiable. Let's be clear. There were 32,000 plaintiffs in the class of victims. The scheme of understaffing involved 22 nursing homes and the penalty assessed was $500 per day per plaintiff for each day the facility was understaffed. If Skilled HealthCare had complied with the law by providing the state mandated minimum nursing hours, it would not have been subjected to this penalty.
The jury concluded (as is evident by its award) that Skilled Healthcare took a calculated risk to staff as thinly as possible and still function, lining their pockets with the money they saved by not hiring the extra staff person per shift or per day that would have bumped them over the minimum staffing standard. They pocketed those savings and reported them as profit. Now, their pattern of understaffing has been exposed, and they claim the monetary penalty is too high because it will bankrupt the company. I ask this question: whose fault is that? If Skilled HealthCare cannot operate its facilities in compliance with the law and make a profit, what are they doing in a "for-profit" business?
Predictably, Skilled HealthCare claims the award cannot be justified, for a variety of reasons. Most recently, they claimed the verdict was tainted by juror misconduct. In a motion to declare a mistrial, Skilled HealthCare claimed that one of the jurors answered questions falsely claiming she had specific knowledge of one of the plaintiffs and that she failed to disclose her involvement and work at the Coroner's office. Then, Skilled HealthCare claimed this biased juror influenced the other jurors to make such a large award. In response, the plaintiffs' attorneys filed declarations of the accused biased juror, and other jury members, which demonstrated the juror properly disclosed her work at the coroner's office, and that she did not know one of the plaintiffs. The judge found there was no juror misconduct and denied the motion.
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