34 N.E.3d 268
Ind. Ct. App.2015Background
- Northlake operates a nursing facility licensed by ISDH; January 2009 survey found noncompliance with health facility regulations.
- Consent Decree in May 2009 provided a three-month probationary license with reevaluation for substantial compliance under 410 I.A.C. 16-2-? and potential full license upon compliance.
- Northlake received three consecutive probationary licenses (May 2009–Jan 2010) as ISDH found noncompliance during each period.
- February 2010: ISDH issued Emergency Order for Relocation; Northlake appealed; ISDH also issued Notice of Non-Renewal; federal Medicaid later terminated provider agreement.
- Northlake sought judicial review (First Petition) seeking stays and alleging arbitrary/capricious orders; court granted a stay through final determination but Northlake later abandoned proceedings and the petition was dismissed with prejudice.
- After facility closure and a later Second Petition challenging ISDH’s actions, the court found ISDH breach of the Consent Decree; ISDH did not appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether res judicata bars Northlake’s Third Petition | Northlake argues petition not barred by res judicata. | ISDH argues prior judgment precludes the Third Petition. | Yes; res judicata bars the petition. |
Key Cases Cited
- First Am. Title Ins. Co. v. Robertson, 19 N.E.3d 757 (Ind. 2014) (exhaustion of remedies is procedural, not jurisdictional)
- Indiana Dep’t of Natural Res. v. Ritz, 945 N.E.2d 209 (Ind. Ct. App. 2011) (trial rule 41(E) dismissal operates on the merits)
- Dev. Servs. Alternatives, Inc. v. Indiana Family & Soc. Servs. Admin., 915 N.E.2d 169 (Ind. Ct. App. 2009) (explanation of res judicata doctrine in context)