Larisa's Home Care, LLC v. Nichols-Shields
277 Or. App. 811
| Or. Ct. App. | 2016Background
- Larisa’s Home Care, LLC (provider) operated a licensed residential adult foster care and contracted with Oregon SPD to accept Medicaid clients at a state-set (lower) rate; it also accepted private-pay residents at a higher rate.
- Isabell Prichard lived at the facility from June 2007 until her death in November 2008; her son Gardner, acting under a power of attorney, applied for Medicaid and controlled her finances.
- After Prichard’s death it was revealed Gardner made false statements on the Medicaid application and had depleted her assets; he was criminally convicted and waived inheritance rights.
- Provider accepted Medicaid payments for Prichard’s care and later sued Prichard’s personal representative (estate) for unjust enrichment, seeking the difference between Medicaid and private-pay rates (~$48,477). The trial court awarded that amount.
- On appeal defendant challenged sufficiency of the evidence to support unjust enrichment, arguing the provider was paid the full Medicaid-authorized amount and contractually barred from charging more; the Court of Appeals reviewed whether the trial court should have granted a motion to dismiss (ORCP 54 B(2)).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether plaintiff proved unjust enrichment so that estate must pay the difference between Medicaid and private-pay rates | Provider says estate was unjustly enriched because Medicaid eligibility (obtained by fraud) caused it to be paid less than it otherwise would have been; requiring payment prevents rewarding fraud | Estate argues provider received full contracted Medicaid payment and, as a matter of law, cannot claim additional payment when state determined Medicaid eligibility | Held: No unjust enrichment as a matter of law; provider bound by contract and statutory scheme that treats Medicaid rate as payment in full, so trial court erred in denying the motion to dismiss |
| Whether defendant’s challenge was preserved despite being raised during closing argument | Plaintiff did not dispute preservation | Defendant argued the closing-argument challenge functioned as an ORCP 54 B(2) motion | Held: Court treated the closing-argument challenge as the functional equivalent of an ORCP 54 B(2) motion and reviewed sufficiency of evidence accordingly; issue preserved |
Key Cases Cited
- Falk v. Amsberry, 290 Or. 839 (1980) (timely motion under ORCP 54 B(2) is essential to preserve sufficiency-of-evidence challenges)
- Fowler v. Cooley, 239 Or. App. 338 (2010) (standard of review on appeal from denial of ORCP 54 B(2) motion)
- Thorson v. Dept. of Justice, 171 Or. App. 704 (2000) (same)
- Cron v. Zimmer, 255 Or. App. 114 (2013) (elements of unjust enrichment)
- Wilson v. Gutierrez, 261 Or. App. 410 (2014) (distinguishing factual and legal aspects of unjust enrichment elements)
- Jaqua v. Nike, Inc., 125 Or. App. 294 (1993) (three legal indicia of injustice for unjust enrichment claims)
- State v. Gonzalez-Valenzuela, 358 Or. 451 (2015) (equivalence of challenges in closing argument to formal motions under certain circumstances)
- Edward D. Jones & Co. v. Mishler, 161 Or. App. 544 (1999) (considering statutory policies when assessing unjust enrichment)
