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266 A.3d 112
R.I.
2022
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Background

  • 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)
Read the full case

Case Details

Case Name: Saint Elizabeth Home v. Rebecca Gorham
Court Name: Supreme Court of Rhode Island
Date Published: Jan 13, 2022
Citations: 266 A.3d 112; 21-27
Docket Number: 21-27
Court Abbreviation: R.I.
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    Saint Elizabeth Home v. Rebecca Gorham, 266 A.3d 112