266 A.3d 112
R.I.2022Background
- Saint Elizabeth Home (a skilled nursing facility) admitted Mary Moore on March 16, 2018; three days later Moore’s daughter and representative, Rebecca Gorham, signed an admission agreement personally guaranteeing payment for Moore’s care.
- The agreement required Gorham to apply promptly for Medicare/other benefits and to notify Saint Elizabeth in writing if Moore’s economic status changed, but expressly stated Moore and Gorham remained liable for the entire amount due.
- Saint Elizabeth sued Gorham on August 2, 2019 for unpaid charges; by then roughly $92,309 had accrued, Medicaid later paid over half, leaving $44,563 outstanding.
- Saint Elizabeth moved for summary judgment arguing Gorham had contractually assumed personal liability; Gorham countered that the facility failed to assist or timely advise about Medicaid applications, causing the deficiency.
- The Superior Court granted summary judgment for Saint Elizabeth for $44,563, finding the contract unambiguous and that Gorham admitted the duty to apply for Medicaid; the Supreme Court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Gorham is personally liable for unpaid charges under the admission agreement | Saint Elizabeth: Agreement unambiguously makes Gorham personally liable for all amounts due | Gorham: Facility’s failure to assist or advise on Medicaid caused the unpaid balance | Held: Gorham is personally liable; agreement is clear and binding |
| Whether the admission agreement obligated Saint Elizabeth to assist with Medicaid application | Saint Elizabeth: No such obligation in the contract | Gorham: Facility had a duty to act/assist in Medicaid process and should have prompted earlier application | Held: Agreement imposes no duty on facility to assist; Gorham was required to apply and notify |
| Whether factual disputes (good faith/mitigation) precluded summary judgment | Saint Elizabeth: No genuine factual dispute; entitled to judgment as a matter of law | Gorham: Alleged failure to mitigate and bad faith by plaintiff created triable issues | Held: Gorham failed to produce competent evidence of disputed material facts; summary judgment proper |
Key Cases Cited
- Middle Creek Farm, LLC v. Portsmouth Water & Fire District, 252 A.3d 745 (R.I. 2021) (standard of de novo review on appeal from summary judgment)
- Boudreau v. Automatic Temperature Controls, Inc., 212 A.3d 594 (R.I. 2019) (view evidence in light most favorable to nonmoving party on summary judgment)
- Citizens Bank, N.A. v. Palermo, 247 A.3d 131 (R.I. 2021) (nonmoving party must produce competent evidence to avoid summary judgment)
- Hexagon Holdings, Inc. v. Carlisle Syntec Incorporated, 199 A.3d 1034 (R.I. 2019) (clear contract language controls parties’ intent)
- Cathay Cathay, Inc. v. Vindalu, LLC, 962 A.2d 740 (R.I. 2009) (contract interpretation principles)
- Nelson v. Allstate Insurance Company, 228 A.3d 983 (R.I. 2020) (burden on nonmoving party to prove disputed material facts with competent evidence)
- JHRW, LLC v. Seaport Studios, Inc., 212 A.3d 168 (R.I. 2019) (nonmovant cannot rely on mere allegations or conclusions to defeat summary judgment)
