Futterman, Sirotkin And Seinfeld, LLP
Futterman, Sirotkin And Seinfeld, LLP

Experienced litigation attorneys
who will fight for you

How important is it to do research on nursing homes?

On Behalf of | Aug 24, 2022 | Business Litigation, Nursing Home Abuse, Nursing Home Neglect |

Nursing homes, like every other business, can live and die on review websites. However, nursing homes are also rated at the state level, so many searching for nursing homes look to online reviews and the state rating to make their decision. And, if your loved one never has any issues while in that nursing home, this amount of research is fine. However, if your loved one experiences nursing home abuse and neglect, you will likely wish you had done more research.

Complicated corporate structures

The Hallmark of national nursing homes, like those that are publicly traded or that have locations across multiple states, is that they have complicated New York City corporate structures. This means that the person you talk to when searching for a nursing home may work for a management company that is hired by an operator who leases the space from a master tenant, who, in turn, leases the space from another entity, who may lease it from another entity that is owned by several other entities. And, it can even get more complicated than this.

Why does that corporate structure matter to me?

It matters if your nursing home abuses or neglects your loved one. Why? Because, who do you sue in that long tree of corporate entities? And, even if you sue everyone, each entity will likely argue that they have limits on liability or no liability at all. Just figuring out who to hold responsible could, therefore, take months.

What about commercial liability insurance?

All New York City nursing homes are supposed to have commercial liability insurance. In addition, often, nursing homes let these policies lapse or they are not for enough money to cover several instances of nursing home abuse and neglect. But, where there is one case of abuse or neglect, there are likely many, many more, which can quickly eat up a small-value commercial liability insurance policy.

What happens next?

If the commercial liability insurance policy is exhausted, but the abuse and neglect claims keep being filed, the next step is bankruptcy. Unfortunately, for you, even if you win your case, a bankruptcy judge will likely put your claim behind other secured claims, which means that litigants can often only access less than 1% of the company’s assets.

Options

For New York City, New York, nursing home abuse and neglect victims, the key is to be one of the first filers because those claims often will be paid out by the commercial liability insurance policy. However, even for those who are not paid out by them, through a lawsuit, civil justice can still be achieved.

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