2 N.E.3d 802
Ind. Ct. App.2014Background
- Martha Farber, a cancer patient, was admitted to Springhurst (a skilled nursing facility) from November 11, 2011, through February 5, 2012.
- Alexis Hutchison signed Springhurst’s Move-In Agreement as a "Responsible Party/Agent" on November 11, 2011.
- The Agreement required a resident who designated a Responsible Party to provide a written document authorizing that person to access/manage the resident’s income or resources; Springhurst had no such document on file for Hutchison.
- Springhurst sued Farber and Hutchison in small claims court for unpaid charges; a default judgment was entered, later set aside, and the case proceeded to bench trial.
- At trial, Springhurst produced billing records; Hutchison testified she never had power of attorney, never had authority to access Farber’s funds, and did not misappropriate funds; Springhurst presented no evidence to the contrary.
- The trial court entered judgment for Springhurst against Hutchison for $2,610.87; Hutchison appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Hutchison is contractually liable to pay Springhurst under the Move-In Agreement | Springhurst: Hutchison signed as Responsible Party/Agent and thus is liable for resident's unpaid facility charges. | Hutchison: She never had authority, access, or control over Farber’s income/resources (no POA or authorization) and did not misappropriate funds. | Reversed: Judgment vacated; court held Agreement only imposed liability for amounts the Responsible Party "controls or accesses," and no evidence showed Hutchison had such access or misappropriated funds. |
Key Cases Cited
- Trisler v. Carter, 996 N.E.2d 354 (Ind. Ct. App. 2013) (standard of review and prima facie error when appellee does not file brief)
- Trinity Homes, LLC v. Fang, 848 N.E.2d 1065 (Ind. 2006) (no deference to small claims court legal conclusions; definition of prima facie error)
- Clark v. Hunter, 861 N.E.2d 1202 (Ind. Ct. App. 2007) (general judgments may be affirmed on any legal theory consistent with the evidence)
- Sunrise Healthcare Corp. v. Azarigian, 821 A.2d 835 (Conn. App. Ct. 2003) (contrast: daughter with power of attorney held liable where she had authority and misappropriated funds)